Will Congress be the Grinch that stole our 401k plans and try to balance the budget on the backs of retirees?
A Play-by-Play citing media articles throughout the year showing how SEC Chair Mary Schapiro misplayed her strategy to hold the fiduciary standard hostage for more Congressional money.
Several early reports suggested the DOL appeared ready to compromise their fiduciary principles by harmonizing with other agencies. The transcript reveals a surprising reality.
Isn’t it ironic that the very people who 401k plans were created to benefit have decided it’s easier to ignore the maze than to constructively participate. Allowing the 401k to evolve up to today’s technology will solve many problems.
While the passage of Health Care Reform muted the market’s momentum in late March, the Goldman Sachs hearings proved the turning point. The folks on Main Street just lost 10% of their retirement savings in less than a month. You can’t blame Wall Street for that.
Has index investing become the soma of savers? Does it place employees – and the markets – in harm’s way? By extension, has the 401k fiduciary now assumed a greater liability?
Unless and until we can break the momentum of intertwined conflicts-of-interest, the greatest legacy we’ll leave our grandchildren’s children may be an outstanding bill to pay for spiraling public employee retirement benefits.
If trawling litigators seek to influence friendly juries in any case against an ERISA/401k fiduciary, the Time article offers a very good starting point…And ill-prepared fiduciaries should be shaking in their boots.