Compensation Strategies Group, Ltd.
Nova 401(k) Associates
Nicholas Pension Consultants
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|The Fiduciary Duty to Monitor 401(k) Plan Investments|
October Three Consulting
Aug. 12, 2015
"In a 'traditional' defined benefit plan, the duty to monitor looks a lot like the duty to monitor investments in a traditional trust.... [I]mplementation of a 404(c)-401(k) plan frames the duty to monitor in a unique way. In this sort of plan, the plan fiduciary must  monitor for continued compliance with 404(c),  if the fiduciary is satisfied that the plan complies with 404(c), then its obligation to monitor individual (participant) investment decisions (e.g., with respect to asset allocation) is generally eliminated, but  the fiduciary does have a residual obligation to monitor for the ongoing prudence of the inclusion of the funds in the fund menu."
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