Most colleges and universities have governing boards that follow guiding principles for good governance practices. Unfortunately, many college and university retirement committees do not have a charter, and even those that do often find that it fails to provide adequate guidance because it is not specific enough to their institution. In the interest of sound institutional and plan governance, every retirement committee should have a custom charter that provides a framework for meeting its responsibilities.
Putting a charter in place for the retirement committee's use is a best practice and an essential component to good plan governance. A well-written custom charter will help the committee ensure that the institution's retirement plan meets all its goals for participants as well as the institution.