by: Roxanne Fleszar
from:  401kWire
May 31, 2000

Ahh, Spring! That wonderful season when the days get longer and warmer,
the trees bud, the flowers bloom, and life in general seems to start anew.
As we welcome this rejuvenating energy into our lives this season, plan
trustees can extend it to the workplace. Now is the perfect time to
reorganize and reprioritize retirement plan issues with trustees' meeting
for the 401(k) plan. Here is a simple checklist to guide you through the
process.

Initially schedule at least a two-hour meeting which is convenient for all
trustees/internal administrators, the record keeper, and the plan's
financial advisor. If you have been less than diligent about performing
quarterly reviews of the plan, more time may be needed.

Plan to discuss the following issues:

Review the Investment Policy Statement (IPS). As a blueprint of all the
procedures a company should undertake to protect the employee's assets,
are there revisions, which need to be made, based on changing plan goals?
Are the criteria mapped out in the IPS being met? This criteria includes
but is not limited to:

1.  past and present investment performance in comparison to peers;
2.  length of fund manager tenure;
3.  an evaluation of all fees incurred to the plan as well as participant
     accounts; and
4.  the accuracy, efficiency and the timeliness of the record keeper.

It would be an appropriate time to determine if there are new products and
services which may be useful to the plan, such as participant internet
access to account information, asset allocation software or making
available an online professional advice firm.

Investment performance may be viewed in two ways. Review the plan
offerings by comparing each fund option to an appropriate benchmark. You
should be doing this quarterly; annually you may evaluate the utilization
of funds and add or delete funds as appropriate to your employee goals and
demographics. Utilization of funds also can indicate patterns of
investment knowledge… Therefore you should evaluate the plan's educational offerings. Are they still meeting the needs of your workforce? If not, create a new plan of action by an increased use of seminars, one-on-one sessions, or perhaps alternate modes of disseminating information, i.e. newsletters, videos, customized spreadsheets. Although investment information is ubiquitous, surveys continue to indicate many participants want and need more investment knowledge.

Take notes and distribute them within a few days after the meeting to all
involved parties, and remember to follow-up as necessary on pending
issues.

A pattern of due diligence meets ERISA guidelines, which protects you the
sponsor as a fiduciary to the plan. As adjustments are made to enhance the
plan, it conveys a sense of your concern for the welfare of the employees.
And of course, it can't hurt if the DOL auditors can ascertain that the
plan is being managed for the benefit of participants on an ongoing basis.

Just as we wouldn't want all the dirt and trash to collect in our homes
for an entire year without cleaning, nor should the 401(k) plan go without
proper maintenance. A documented full annual review plus periodic checks
can keep things running smoothly, and insure against claims of negligent
behavior from unhappy participants. When you are done with the dustpans,
break out the pens and paper. Happy Spring!