10 Strategies to Optimize Your Plan’s Investment Process

To meet ERISA’s “prudence” standards, plan fi­duciaries must follow a disciplined and documented process when making investment-related decisions. Here are 10 strategies to optimize your committee’s investment selection and monitoring process.


  1. Develop an Investment Policy Statement (IPS) that is customized to your plan
  2. Make sure your investment reporting aligns with the criteria in your IPS and establish a watch list process
  3. Consider hiring an ERISA 3(21) advisor to assist your committee with investment decisions or delegate this responsibility to an ERISA 3(38) “Investment Manager”
  4. Simplify your investment architecture and streamline the number of funds in your plan
  5. Select low cost, passive investments such as index funds
  6. Minimize overlap by using one fund per asset class
  7. Make sure your TDF selection process aligns with DOL guidance
  8. Comply with ERISA 404(c)
  9. Periodically implement a TDF “re-enrollment” strategy to properly position disengaged participants
  10. Document investment decisions and why they were made in meeting minutes or another format
Looking for more?

We are dedicated to helping our clients develop benefit plans that fit the needs of the business owner, focus on company goals, and help employees feel confident in their financial future. For more information on our retirement consulting services along with our (k)larity @ Work™ financial wellness programs check us out at www.greenspringadvisors.com or give us a call at 443-564-4600.

Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. It is not intended as the primary basis for financial planning or investment decisions and should not be construed as advice meeting the particular investment needs of any investor. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.

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