ERISA Section 404(c) of the Employee Retirement Income Security Act of 1974 (ERISA) defines the responsibilities of plan fiduciaries. Fiduciaries that control plan investments are subject to specific statutory standards of conduct such as acting in a practical manner and being required to diversify investments. If a plan fiduciary elects ERISA Section 404(c) coverage, that fiduciary should adopt an investment policy.
To assist you, Lincoln has provided the following sample investment policies for you to customize according to your plan. To select the appropriate policy, you will need to know if your plan investments are all or partially directed by the plan participants or by an investment committee. This information can be found in the plan document or adoption agreement. Once you create an investment policy, be sure to keep an original copy for your plan records.