Saturday, May 01, 2010

Dept of Labor Will Issue Target Date Fiduciary Checklist

There has been a great deal of consternation and hand wringing over Target Funds’ performance during the recent market “episode”. Many plan participants believed that they were safe in, say, a 2010 Target Fund since it was designed to decrease risk based on expected retirement date. It turns out that each Target has its own idea of what constitutes risk for a 62 year old participant.

The Dept of Labor is now stepping in with a checklist (available soon) to help sort out this mess. Here is the announcement: http://tinyurl.com/2dd8kfp

Westport Benefits Group also provides insights into Target risk, performance, and style; one size does NOT fit all. Call/write for details