Do You Really Qualify For 404(c) Safe Harbor From Liability?

Under ERISA plan sponsors or advisors who exercise discretionary authority are fiduciaries with significant liability in case of fiduciary duty violation. Section 404(c) provides safe harbor protection fiduciaries in case plan participants experience investment losses. How do you obtain that protection? We will focus on the Investment Menu Requirements section of the 404(c). Many plan sponsors are unaware of the fact that 404(c) expressly requires plan fiduciaries to consider underlying holdings of the funds that they offer. The analysis they do and tools that they use focus on fund’s return history without considering the underlying positions of the fund. We will show how that problem can be fixed by using the established investment management science, SEC databases and latest technology. Read more: The Ultimate Guide: Becoming an Expert on 404c Safe Harbor For Your Plan Sponsor Clients
 
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