Viewing this content requires a Basic (Free) Membership or better. You are not currently logged in. If you have an account, you may login below, or use the “Log In”
Posts From Christopher Carosa, CTFA
Plan sponsors ought naturally to know how the plan addresses the needs of their business, but do they really know how to tweak the plan to improve outcomes?
This isn’t a compliance audit, it’s an operating efficiency audit. That covers plenty of ground, from technology to benchmarking the value offered by the service provider.
Oddly, it’s usually the opposite for mutual funds. Actively managed (higher operating cost) funds tend to perform better during market downturns. Passive (lower operating cost) funds, on the other hand, generally perform better during growth markets.
If plan sponsors are working with the appropriate plan fiduciary, then an ongoing review of the fund’s performance, fees, and underlying risk should be part of their ongoing process
For all the good intentions, however, what will happen when the rubber finally meets the road? Will the new DOL Fiduciary Rule really level the playing field?
Here’s where the greatest controversy of the new Rule, as with its predecessors, comes to a head.
“This lack of active involvement could lead to inefficiencies, reduced liquidity, and potential market instability, as prices may not accurately reflect the underlying value of securities.”
For all the rose-colored eyes that have a created a legend flawless certitude concerning memories of a time that never existed, pension plans simply can’t measure up to 401k plans.
FiduciaryNews.com Trending Topics for ERISA Plan Sponsors: Weeks Ending 3/29/24
Ridiculous regulators, revving up the Fiduciary Rule, and emerging investment patterns.