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Tag "Marcia Wagner"
For fiduciaries, the comparison process must go deeper than surface-level performance. Yield is important, but transparency, diversification, and liquidity provisions matter just as much.
How can fiduciaries bridge the generational divide in 401k communication without inviting ERISA scrutiny? The strategies that follow may prove transformational.
With Supreme Court scrutiny looming, comparator standards could either narrow or widen 401k fee litigation. Plan for both outcomes now.
Such hesitation shifts the spotlight back to fiduciary fundamentals. New rules may widen the menu, but ERISA doesn’t relax the obligation to fully understand and monitor what’s offered.
Ironically, while some see lowering the savings limit as politically palatable because it impacts only a small segment of the population, that same fact reduces the effect of such a policy shift.
As long as the fiduciary ball remains in the Executive Branch’s court, it’s easy to predict what will happen. That doesn’t mean, however, that we won’t see some surprises coming from the Legislative Branch.
What’s one way 401k plan sponsors can ensure they establish a due diligence framework that can best reduce their fiduciary liability?
I do not underestimate the ability of the plaintiff’s bar to come up with novel and clever arguments, but for the reasons set forth in the white paper I do not believe that they can construct a viable theory.
401k Christmas Wish List
Viewed through that lens, a 401k Christmas wish list isn’t just about outcomes, but about predictability. A stable rulebook can make it easier to design, monitor, and maintain plans that work in practice as well as on paper.