Rules of ethics for pension committee members
The pension committee's operating rules must include rules of ethics. They are required so that the members act responsibly and with integrity at all times. They generally cover the following:
- The confidentiality of information concerning the plan and its administration (e.g., the conditions under which the committee members or other persons can consult the information)
- The actions to be taken to prevent a member of the pension committee from being in a conflict between his or her personal interest and his or her duties (for example, knowing what to do when members are offered gifts)
- The members' duties and obligations (e.g., attending meetings and developing their skills), etc.
A helpful example...
The internal by-laws provide that a member who does not attend a committee meeting must have a serious reason and must notify the chair within a reasonable time frame. They also provide that a member can be replaced by the committee if he or she is repeatedly absent and, if the person was not designated at the annual meeting, can recommend a replacement to the person who designated him or her.
For more information about the committee's other operating rules, refer to: