The proliferation of investment options promised participants a plug-and-play plan. In the process, it created a 401k Frankenstein monster of a mess.
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The bottom-line is employees may be setting themselves up not only for failure, but for a costly failure. This is why it’s vitally important for employees to understand more than just the simple objective and class of the mutual funds they own.
If you’re a plan sponsor, it’s time to review how your plan measures up against these design elements. If you’re looking to become a plan sponsor for a new plan, consider whether or not you should include these design elements.
Camels, Clods, and Ostriches rule the week.
Keeping the investment option menu simple not only increases the odds employees will retire in comfort, it also helps reduce fiduciary liability for plan sponsors.
FiduciaryNews.com Trending Topics for ERISA Plan Sponsors: Week Ending 2/12/16
DC dissing retirement savers, can annuities survive Fiduciary Rule, and fee scrutiny changing 401k world,