Normally, interest rates rise with inflation. In turn, bond rates rise with interest rates. But that hasn’t happened. In fact, short rates remain at historic lows. This means folks sitting in money markets or “safe” government bonds (and bond funds) are seeing their retirement savings eroded away.
Basic Members
If you’re a fiduciary of the acquiring plan, you want to make sure you’re not burdened with any unknown liabilities. If you’re a fiduciary of the acquired plan, you want to make sure the merger process doesn’t introduce new liabilities.
What would it take to realize the fiduciary liability of overtly using “risk tolerance” metrics? And what can 401k plan sponsors do about it?
The conflicts-of-interest inherent in selecting proprietary funds are apparent. Less so are the criteria used to determine what a suitable process might be.
Beyond the usual gestation period, here are some specific “trigger points” which plan sponsors have reacted to that have accelerated their decision to move into a PEP?
But that idea contained a flaw. In the early years, limited choices made it easy for employees. The proliferation of the number of options in later years, however, exposed the lack of sophistication within the employee cohort. That can lead to bad decision-making. Alternative solutions were needed.
We trust you’ve found the worth of these articles and, over the years past and the years to come, that you have taken and will continue to take from them something of value from FiduciaryNews.com.
Here’s the countdown you’ve been waiting for. Why do you think these particular stories were so widely read? What does that fact tell you about the interests of plan sponsors, their service providers, and retirement industry regulators?
How do we design and administer retirement plans?
The Biggest 401k Fiduciary Fireworks, Fizzles, And Flops In 2021
Flops may not be forever. They may just be good ideas before their time. If you’re going to belittle them, you best hurry, because, if you wait too long, you may just discover they aren’t flops anymore. As a result, let’s not waste any time before the shelf-life of these flops expire.