Partner Julie Stapel is quoted in PlanSponsor discussing growing interest by plan sponsors to set up an option for part of a participant’s portfolio to shift from a target-date fund into a retirement income solution at a predetermined time. This setup allows plan sponsors to delegate fiduciary responsibility for selecting the product to the target-date fund investment manager, if the manager agrees to take on the 3(38) fiduciary role, Julie said.
“The idea is that sponsors could insulate themselves from fiduciary responsibility for selection of the annuity; that’s why I think some of these products are gaining some traction,” Julie said. “The committee still does have the responsibility to engage in a process to ensure that the investment manager they’re hiring has the expertise to pick an annuity provider.”
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