Here’s where the greatest controversy of the new Rule, as with its predecessors, comes to a head.
Tag "Richard Bavetz"
For all the rose-colored eyes that have a created a legend flawless certitude concerning memories of a time that never existed, pension plans simply can’t measure up to 401k plans.
Herein lies the potential for a direct conflict of interest. This applies generally to all proxy voting in commingled portfolios.
Since actively managed funds have lagged index funds, does this case put their continued use in ERISA plans at risk?
On the face of it, American Airlines seemed to follow its documented process. So, what did the company do wrong?
All kidding aside, Valentine’s Day is more than cards, candy, and Cupid. It’s about renewing a vow to treat each other with the highest fiduciary standard.
Worse, if the “alternatives” alluded to by the paper entail government backed programs like Social Security, this could have a debilitating impact on encouraging people to be responsible for funding their own retirement.
Plan sponsors need to think about it in these terms: Does it make sense to have a pork-belly ETF on a 401k investment menu? How about orange futures?
To make the procedure more agonizing, the transition away from Chevron may feel like death by a thousand cuts. But the snail-like process of the courts has its benefits.
These Classic Movies (Unknowingly?) Promote The Fiduciary Standard
It seems like each decade produces a major box office hit that exudes fiduciary. This whole “best interest” thing seems to have caught on in Tinseltown. More recent movies have added a good dose of the “honesty” part of fiduciary.