Why Investment Policy is important, including a list of components that belong in every sponsor`s policy statement.

Numerous fiduciary issues make investment policy statements an invaluable tool for the effective management of participant-directed defined contribution plans. However, many plan sponsors and vendors neglect to develop appropriate policy statements. This article lists the most important components of an effective investment policy statement, and suggests how a plan sponsor might go about developing an investment policy.

Download Investment Policy Statements for Defined Contribution Plans.

This article originally appeared in the Autumn 1999 issue of Journal of Pension Benefits.