According to a company announcement, Pan-American will take on joint responsibility for a plan’s mutual fund selection made according to Pan-American’s recommended due diligence. The new offering is in addition to its 401(k) plan offerings, the firm said.
Pan-American officials said they were also talking with participating fund companies to work out how Pan-American can become a plan’s fiduciary when plan sponsors use its fiduciary liability management program.
Pan-American said plan sponsors can help safeguard their companies from fiduciary liability by:
- being aware of the fiduciary role played by each party involved in the 401(k) plan
- choosing investments for the plan based on a prescribed Prudent Man approach
- providing consistent investment monitoring
- implementing and maintaining an investment policy statement
- educating participants
- holding regular due diligence meetings
- making investment changes as appropriate to protect the integrity.