Last time, we discussed the components of an Investment Policy Statement (IPS), an essential element to any company retirement plan. A great deal of the IPS is centered on the plan’s investment lineup, or the investment options (funds) available to each participant in the plan.
Investment Policy Statements: What are they? Why do I need one?
If you are a retirement plan sponsor, you should already be familiar with an Investment Policy Statement (IPS). Of all the documents related to your company’s plan, it’s essential that the plan has—and follows—an IPS. In fact, it may be the first item that a Department of Labor audit will ask for.