The mistaken promise of participation may have an all-too-familiar ring to corporate retirement plan veterans.
Compliance
In the end, this all comes down to one final concern, and it’s one that is typically not even considered.
This has long been demanded of fiduciaries. Nearly two centuries ago in Harvard College v. Amory, the Massachusetts court promulgated what has become known as the “prudent man rule.”
Before you start to panic, take a deep breath and relax. The retirement savings industry is an aircraft carrier. It can’t turn on a dime.
Sometimes when you try your best, you still miss something important. And that could be the most dangerous miss you make.
If a fiduciary must vote proxies, following the DOL’s guidance may represent the most practical alternative.
Do you know the answers to the most important MEP/PEP questions – or do you only think you know the answers to the most important MEP/PEP questions?
Unless state-sponsored efforts can defy the stultifying reality of any political process, they are unlikely to pivot fast enough to overcome the fast-paced offerings coming from these private sector offerings.
This isn’t free money. It comes at a price. Many naïve folks might be salivating at the prospect of releasing these big bucks from the prison of their retirement plan… until they read the fine print.
When doing what’s in the best interests of the employees takes on an entirely new meaning.
