Is it a Good Idea to Have Plan Participants on an Investment Committee?

3ethos CEO Don Trone published an article for Napa-net.org on why a fiduciary advisor may want to include participants are included in investment decision-making.

Aristotle identified prudence as the ability to understand the perspectives of others — being able to see another person’s point of view. Therefore, the duty to be prudent raises two interesting questions for 401(k) plans:

• Is it a good idea to get the perspective of rank-and-file participants by having them serve on the investment committee?

• Can a plan sponsor be certain that it is being prudent if rank-and-file participants are not actively involved with the investment committee?.

The full article is linked here.

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