According to a press release, PMFM warrants that 401k Toolbox satisfies the Employee Retirement Income Security Act (ERISA) criteria to be an “investment manager” for the participant accounts over which 401k Toolbox will have discretionary control. 401k Toolbox, as a model portfolio service program, also satisfies the definition of a QDIA as required by the Department of Labor (DOL), the company said.
The warranty stipulates that 401k Toolbox will indemnify the plan fiduciaries for any un-reimbursed loss resulting from a breach of 401k Toolbox’s representations, warranties, and covenants and will bear the reasonable costs, including attorney’s fees, of defending a claim that is subject to the warranty.
“401k Toolbox will be responsible for the prudent investment management of the assets in participants’ QDIA accounts and their QDIA Warranty simply puts in writing PMFM’s commitment to this position” said Dennis Mosticchio, Senior Vice President, Guardian Group Pensions, in the news release.
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