The attached article summarizes the current controversy involving target date funds. We provide an overview of this controversy (below) and provide action steps for fiduciaries to protect themselves from potential liability and exposure. What’s a Target Date Fund (“TDF”)? Target date funds (“TDFs”) are premixed portfolios that automatically become more conservative as an investor’s “target” [...]
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Important Guideposts to Protect Plan Sponsors and Fiduciaries
A federal court in California has provided important guideposts (below) that can protect plan sponsors and other plan fiduciaries. We are continuing to assess interest in a seminar on retirement plan fiduciary governance and best practices. If you would be interested in attending a seminar on this topic, please let us know by replying to [...]
Rethinking the Company Match
The article, “Rethinking the Company Match,” may be of interest. It describes a study of the impact of employer matching contributions under automatic enrollment. Among other things, the study found that automatic enrollment’s success in increasing employee participation is only marginally dependent on whether a company makes a matching contribution. According to the study, participation [...]
The New Mix
Attached is an article we found interesting (“The New Mix”). It describes how many plan sponsors are redesigning their plans to provide a more manageable and appropriate menu of investment options. The changes are based upon research that shows that offering too many investment options can actually stymie employee choice and hinder plan participation. The [...]
Retirement Plans in the Crosshairs – 401(k) Fee Litigation
A series of ERISA-based class action lawsuits has been filed, challenging service provider and investment-related fees charged to 401(k) plans. The defendants in the cases are plan sponsors, their boards, plan committees, and individual executives who serve on those committees. The lawsuits allege that the defendants breached their fiduciary duties of loyalty and care under [...]
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