Official Guide

Defined Contribution Plan Process The Written Investment Policy Statement

Part I. THE PLAN

The [INSERT LEGAL COMPANY NAME] sponsors the [INSERT PLAN NAME] (The Plan) for the benefit of its employees. It is intended to provide eligible employees with the longterm accumulation of retirement savings through a combination of employee and employer contributions to individual participant accounts and the earnings thereon. The Plan is a qualified employee benefit plan intended to comply with all applicable federal laws and regulations, including the Internal Revenue Code of 1986, as amended, and the Employee Retirement Income Security Act of 1974 (ERISA), as amended. [If you intend to design a plan that is 404(c) compliant and you intend to meet the requirements of ERISA Section 404(c), you will need to insert the following language: The Plan is intended to comply with ERISA Section 404(c) and the choice disclosure required by the regulations will be met.] The Plan’s participants and beneficiaries are expected to have different investment objectives, time horizons, and risk tolerances. To meet these varying investment needs, participants and beneficiaries will be able to direct their account balances among a range of investment options to construct diversified portfolios that reasonably span the risk/return spectrum.1 Participants and beneficiaries alone bear the risk of investment results from the options and asset mixes that they select.

Part II. THE PURPOSE OF THE INVESTMENT POLICY STATEMENT

This investment policy statement is intended to assist the Plan’s fiduciaries by ensuring that they make investment-related decisions in a prudent manner. It outlines the underlying philosophies and processes for the selection, monitoring and evaluation of the investment options utilized by the Plan. Specifically, this Investment Policy Statement:

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Defines the Plan’s investment objectives. Defines the roles of those responsible for the Plan’s investments....