52626 Posted February 11, 2015 Posted February 11, 2015 Participant Directed 401(k) Plan. When you read 404© it does not specifically say education meetings are required. Fiduciaries must provide the participants with the investment information to make an informed decision. Does ERISA require the employer conduct education meetings? Not sure why they wouldn't... I am looking for any regulation that requires education. Thanks
QDROphile Posted February 12, 2015 Posted February 12, 2015 The DOL published in Interpretive Bulletin 96-1, found at 2509.96-1 of the ERISA regulations, in footnote 1, its postion that there is no duty to provide investment education. Investment advisory firms, such as Oppenheimer, have been lying/misinforming to the effect that it is required ever since. And they would be happy to help you with your investment education program. "Not sure why they wouldn't..." I don't know who you think "they" are, but they are not so stupid as to think that investment education has any value to the masses of plan participants who have been thrown to the dogs under 404©. Investment education is just a feel-good pill for those who should feel guilty about resorting to 404©. One really good indication that 404© has produced a total travesty is the popularity of target date funds as "the answer" for the unsophisicated investor.
ESOP Guy Posted February 12, 2015 Posted February 12, 2015 The DOL published in Interpretive Bulletin 96-1, found at 2509.96-1 of the ERISA regulations, in footnote 1, its postion that there is no duty to provide investment education. Investment advisory firms, such as Oppenheimer, have been lying/misinforming to the effect that it is required ever since. And they would be happy to help you with your investment education program. "Not sure why they wouldn't..." I don't know who you think "they" are, but they are not so stupid as to think that investment education has any value to the masses of plan participants who have been thrown to the dogs under 404©. Investment education is just a feel-good pill for those who should feel guilty about resorting to 404©. One really good indication that 404© has produced a total travesty is the popularity of target date funds as "the answer" for the unsophisicated investor. QDRO I am unsure what you think about this topic.
QDROphile Posted February 12, 2015 Posted February 12, 2015 Well, I hope at least the citation was understandable.
mbozek Posted February 12, 2015 Posted February 12, 2015 Some administrators and HR personnel believe that offering investment education will prevent lawsuits by employees who make poor investment choices since they were offered the opportunity to learn about retirement investing. This is a good as it gets in 401k plans because plan sponsors and fiduciaries do not want to be sued by participants for providing investment advice. mjb
GMK Posted February 12, 2015 Posted February 12, 2015 a total travesty is the popularity of target date funds as "the answer" for the unsophisicated investor. Even out of context, this says it perfectly and not only for the investors.
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