Week ending August 31st, 2018

Defined contribution (DC) plan sponsors have a fiduciary duty when it comes to selecting and monitoring the investment choices they offer in their plans’ fund menus. They must understand how market conditions affect the types of investments they are offering. They have to make decisions about active versus passive investment options, and keep in mind the costs of investments while making what is best for plan participants their first priority. Some investments are harder to benchmark than others—such as target-date funds (TDFs). If plan sponsors feel they do not have the expertise to make wise choices or monitor investments, outside expertise can help. This week’s edition of PLANSPONSOR Weekend offers insights that may help DC plan sponsors with their fiduciary duties regarding investments. Have a wonderful long weekend!

Editor's choice

Investing

The Case for Using an Institutional Approach for DC Plan Investments

An institutional investment approach uses outcome-oriented investments, broad asset class diversification, best-of-breed investment management, a thoughtful mix of active and passive strategies and are vehicle agnostic, a report notes. Read more >

Investing

‘Low-Cost’ Does Not Always Mean ‘Better’ TDFs

Morningstar warns that the distinction between “active” and “passive” target-date series has become more muddled in recent years. Read more >

Investing

GAO Explores Why Few Retirement Plans Embrace ESG Investing

The Government Accountability Office (GAO) says in other cases where plans may face complexity, such as selecting a target-date fund or monitoring pension consultants, the Department of Labor (DOL) has provided general information, including items to consider and questions to ask. It suggests that the DOL do the same with ESG investing. Read more >

Investing

Participants Need to Understand Market Cycles

The record bull market may cause retirement plan participants to be overly confident, but they need to understand market cycles and volatility so they can resist making the wrong investment and retirement savings decisions. Read more >

MOST POPULAR STORIES

J.P. Morgan Agrees to Settle Stable Value Funds Suit

The firm has agreed to pay $75 million to settle litigation brought by multiple retirement plan participants alleging J.P. Morgan invested its stable value funds in risky assets.

Individuals, Employers and Government All Play a Part in Retirement Readiness

A new research report and Catherine Collinson, with Transamerica Center for Retirement Studies, lay out steps all three can take to improve retirement confidence and readiness in America.

Participant Loans: A Fiduciary Storm Brewing?

Bruce Ashton, with Drinker Biddle & Reath, discusses the fiduciary risk defined contribution (DC) plan sponsors could face when participants default on plan loans.

What to Know About Financial Audits Filed with Form 5500s

Plan sponsors required to file a financial audit along with their Form 5500 should know how regulators use the information and how to pick the best auditor.

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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

Advertising: Paul Zampitella paul.zampitella@strategic-i.com

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