A recent court decision reminds us how important it can be to follow procedures specified in plan documents when adopting plan amendments. A federal district court in North Carolina recently ruled an amendment to an employer’s retirement plan authorizing the liquidation of company stock from the plan was invalid. Because the plan document specifically identified company stock as an available investment option, a plan amendment was required to authorize the stock’s liquidation. The plan’s amendment procedures required action (either by a majority vote or by a written instrument signed by a majority of the committee members) by the plan committee to adopt any plan amendment. The committee did not meet to consider the amendment, and only the committee secretary’s signature appeared on the amendment eliminating company stock as an investment option, thus rendering the amendment ineffective. It is worth noting that this decision was made in the context of a class action lawsuit to recover plan losses alleged to have resulted from the liquidation of the company stock. (Tatum v. R.J. Reynolds Tobacco Co., M.D.N.C. 2011)