If you think this evolution is amazing, just wait until you see what changes come about once the 401kMEP starts ramping up.
Due Diligence

Once 401k plan sponsors become aware of the differences between the types of service offerings, the ideal strategy is then to explicit solicit proposals for each type of offering to determine which kind of offering best serves their unique situation.

But is that a chance a fiduciary should take with someone else’s money? The answer is so obvious the question should not have to be asked.

A good fiduciary must keep a level head and know when emotions drive investors. After all, if they’re not careful, emotion will drive investors right off the cliff.

When retirement industry professionals talk about the impact of the 2006 Pension Protection Act, you might be surprised that this is what they conclude.

A fiduciary who only looks at the most recent reporting period stands to make an unfortunate – and potentially damaging – investment decision… and unnecessarily exposes himself and his company to a liability that can otherwise be easily avoided.

Worse, those held accountable for the potential damage of the flaw are not these detached organizations, but the professionals implicitly promoting the festering error – regular people ranging from bank trustees hired to guard the interests of beneficiaries to retirement plan sponsors and trustees responsible for protecting their employees.

Would you rather have the nuts and bolts practical guide for what to ask or the theoretical questions that tend towards the philosophical? Most 401k plan sponsors are too busy for theory, that’s why they’ll prefer to focus on these questions.