Well, if weāre thinking outside the box, why not go big? It turns out, retirement planning isnāt just about accumulating sources of future funds.
Tag "ERISA"
This week weāll be focusing on those favorite features as judged by the retirement plan professionals we interviewed. Donāt be surprised if over the next few weeks you discover that one providerās treasure is another providerās trash.
The root of these broader fiduciary concerns lies within the domain of compliance. Everything derives from what the regulators require, what any DOL audit might look at, and what might pique the interest of class-action attorneys.
āThe ERISA plaintiffsā bar has overlooked the potential value of the Restatementās prudent investor rule and its application to litigation involving 401k plans.ā
This dilemma isnāt new. Trust officers have had to face it for generations. Itās called a āsplit-interestā trust. Multiply this split interest problem by the number of beneficiaries in a typical retirement plan and you can see how this conflict grows more complex.
The Biden Rule, like the Trump Rule, does not encourage or discourage the use of ESG criteria when selecting investments. This allows fiduciaries to either adopt ESG principles or ignore them.
By far, thereās almost universal agreement that 401k fiduciaries should be less concerned about investment performance than you might have seen a generation ago. Why is this so?
Not only do you need to watch the place that holds all the money, you need to watch the pipeline that feeds the money there.
Letās not just blame certification providers. Government agencies responsible for monitoring and enforcement are also responsible for market confusion and the dilution of the āfiduciaryā standard.
The story arc of the 401k mimics that of software. Each release adds to and builds on features and benefits over and above those of previous releases.
