The Biden Rule, like the Trump Rule, does not encourage or discourage the use of ESG criteria when selecting investments. This allows fiduciaries to either adopt ESG principles or ignore them.
Tag "ERISA"
By far, there’s almost universal agreement that 401k fiduciaries should be less concerned about investment performance than you might have seen a generation ago. Why is this so?
Not only do you need to watch the place that holds all the money, you need to watch the pipeline that feeds the money there.
Let’s not just blame certification providers. Government agencies responsible for monitoring and enforcement are also responsible for market confusion and the dilution of the “fiduciary” standard.
The story arc of the 401k mimics that of software. Each release adds to and builds on features and benefits over and above those of previous releases.
Before you get all excited and look to replace your home equity loan with a 401k loan, you should consider these things.
Nobody’s perfect. It’s unfair to expect recordkeepers to be. Everyone makes mistakes—even recordkeepers. The problem is what happens when a mistake occurs.
Just as these changes come bearing down, so, too, does a need for greater hand holding. Pressures within the provider industry, however, appear to be reducing the number of available hands.
Today, in reading some of the headlines, you’d think they’re greater than sliced bread. They may be. They may not be. Still, there are differences, and 401k plans sponsors would benefit from practicing the utmost in due diligence when determining if CITs are the right fit for their plan.
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.
