“Honest Abe” earned his nickname very early in life. In fact, perhaps the most famous narrative defines the very nature of fiduciary loyalty. And, of course, it deals with the flow of and caretaking of pecuniary assets. In this manner, Lincoln, more than Washington, better represents the modern ERISA fiduciary.
Plan Sponsors
What would it take to realize the fiduciary liability of overtly using “risk tolerance” metrics? And what can 401k plan sponsors do about it?
It’s not necessarily something that can be done at the flick of a switch, but it can be baked into the process.
If a company sees a substantial number of employees exit their firm, this can have a detrimental impact on all areas. Even the company’s 401k can be negatively affected in a number of ways.
Here are five relevant lessons 401k plan sponsors can ask their service providers to show during employee education meetings.
The decision to retain and service company retirees appears (at first blush at least) to be a no-brainer. But that includes a very important assumption.
Fad topics come and go be a certain set of 401k concerns remain the same. What are they and why do they motivate plan sponsors?
Plan sponsors can benefit from motivated employees, and the 401k plan is a tool to achieve this motivation. What precisely can plan sponsors offer in addition to the usual company match to make their 401k plan more enticing, more attractive, more motivating?
Just because you don’t have a fiduciary duty to other employees doesn’t mean you shouldn’t continue to think like a fiduciary.
Before you scorn the use of badges, remember, the company match is the ultimate badge. If you meet a minimum savings goal, the company awards you a “badge” of a matching contribution.
