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Werewolves of Pension

Adam C. Pozek 03/17/11
I was recently asked to write an article on ERISA Section 404(c). As I contemplated how to approach the article, I recalled many situations in which I have heard 404(c) pitched as the mythical silver bullet to save plan fiduciaries from the specter of liability associated with participant-directed investments.
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Reasonableness Requirement Is Not New

Adam C. Pozek 02/24/11
An article appeared yesterday on CFO.com entitled “New 401(k) Obligations Heaped on CFOs” and it carried a tagline stating “New disclosure rules abound, but pay close attention or you could be sued by plan participants.”
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The Plan Document – More Like Guidelines or Actual Rules?

Adam C. Pozek 03/30/10
As the EGTRRA restatement window closes for pre-approved DC plans and begins to open for pre-approved DB plans, I thought I would pontificate on the importance of the plan document. Qualified plans are required to be maintained pursuant to a written plan document. Operating the plan inconsistent with terms in that document is an operational ...
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Weighing In on the 3(21) vs. 3(38) Debate

Adam C. Pozek 03/10/10
Several weeks ago, I had a lengthy conversation with a prospective client (we’ll call her Alice) and her investment advisor. After the standard dialogue about fees, service guarantees, etc., the discussion inevitably turned to the retirement plan “F” word – FIDUCIARY. Alice had read this article and wanted to know if the advisor would be a 3(21) ...
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In Search of the Elusive Non-ERISA 403(b)

Adam C. Pozek 02/21/10
Crikey! We’ve just discovered the rare non-ERISA 403(b) plan meandering along, oblivious to such details as filing Form 5500 or worrying about fiduciary responsibility. Wait…could it be this harmless creature only offers investments from a single vendor? Danger! Danger! Danger!
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Rethinking Participant Direction of 401(k) Investments

Adam C. Pozek 01/25/10
As an industry, we have spent a great deal of time over the last 2 years discussing issues like investment advice, default investments and fiduciary responsibility ostensibly for the purpose of improving retirement savings for employees. While these are important issues, we have been avoiding the elephant in the room – participants simply aren’t ...
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Is Cheapest Always Best?

Adam C. Pozek 12/7/09
This was the subject of quite a lengthy debate in the 401(k) group on LinkedIn last week. By the end of the day on Friday, there were more than 40 comments. While the discussion took a few twists and turns, the primary debate was whether it is ever appropriate for a plan to pay a higher fee for a service if there is a lower-cost option available.
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The views expressed in this blog are those of the authors and do not necessarily represent the views of any other person or organization. All content is provided for informational purposes only and is not intended to be tax or legal advice.