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Simply stated, a 401k decision-maker is required to demonstrate that a prudent investment process is followed in managing investment decisions which is based on:

• Best interests of the participants;
• Industry best practices; and
• Generally accepted investment theory.

Besides the legislative and regulatory requirements, it also has been demonstrated that superior investment returns are the result of developing a prudent process or strategy, and then adhering to it. As a practical matter, a comprehensive framework is needed to ensure that a 401k decision-maker's process is fully and effectively addressed on an ongoing basis. Only by following a structured process can a decision-maker be certain that all critical components of an investment strategy are being properly implemented.

The role of the 401k decision-maker is to maximize the benefit to be gained from the process— that is to maximize the likelihood of the plan achieving its goals and objectives. It will be the actions of the 401k decision-maker as the manager of the investment process that will have the greatest impact on the plan's (and, in turn, the plan participants') investment success.

401k Ethos— co-authored by Don Trone and Matt Hutcheson, two of the industry's most trusted fiduciary experts— outlines the requisites that make the roles and responsibilities 401k decision-makers authentic and ultimately practical. It is written for decision-makers who recognize that their role is a form of public service, and that their responsibility is to be procedurally prudent in the management of investment decisions.