3(16) ERISA Fiduciary Definition

Recently there has been an emergence of entities offering to provide ERISA Section 3(16) services. Plan sponsors may be interested in divesting themselves of Section 3(16) plan administrator responsibilities and there are questions regarding this concept and its perceived desirability. The unfortunate reality is that the advertisements, marketing material and articles (often written by interested … More 3(16) ERISA Fiduciary Definition

Shedding Light on Collective Investment Trust Funds

Early collective investment trusts (CITs) were pools of securities, traded manually, and typically valued only once a quarter. While popular in defined benefit plans, CITs were not as widely accepted in defined contribution plans due to operational constraints and a lack of information available to plan participants. Today, there is growing concern over how 401(k) … More Shedding Light on Collective Investment Trust Funds

Oversimplification in Target Date Funds Endangers Participants’ Retirement Savings

How are custom solutions evolving to mitigate risk? Since the Pension Protection Act of 2006, target date funds (TDFs) have increasingly found their way into retirement plans as the preferred qualified default investment alternative (QDIA) for participants who make no election. Not only have plan sponsors widely adopted TDFs as the plan’s QDIA, but participants … More Oversimplification in Target Date Funds Endangers Participants’ Retirement Savings