Other Views
-
A looming threat employers face from 401(k) plan loan defaults
As an employee benefits lawyer who counsels employers, I have become increasingly concerned about the implications of “pension leakage” for fiduciary liability, at least in the absence of currently available loan protection or a statutory safe harbor. Pension leakage is a term describing what ...
-
Fed's policy jeopardizes achievement of its goals and risks upending marketsSince the global financial crisis, central banks around the world have been forced to take dramatic and unprecedented actions to stabilize markets and shore up faltering economies. As a result, a high degree of global monetary policy accommodation has been part of our economic landscape for years,
-
Misguided legislation would close a great DB system
The Florida House of Representatives on March 22 passed HB 7011, which would eliminate participation in the Florida Retirement System defined benefit plan for all new public employees.
-
Japan's new economics and reforms underpin dynamicsIt is a well-known saying in the investment community that Japanese equities should be occasionally rented, but never owned. Are there any reasons to believe the current market rally is different? Dramatic changes are now taking place in Japan. What we are witnessing is a very real opportunity for
-
Is PBGC a better trustee?
When a company is in bankruptcy or facing financial hardship, at some point it might have to face the question of whether to terminate its defined benefit pension plans. This is a difficult decision, and hard as a plan sponsor tries, termination might turn out to be the only option.
-
401(k)s may be sitting ducks
The 408(b)(2) fee disclosure regulation requires 401(k) service providers to fully disclose in an understandable manner their fees and any potential conflicts of interest that may affect their performance. This regulation, issued by the Department of Labor in February, was Congress' recognition of
-
Divesting is an exercise in real fiduciary care
Fiduciaries are the only class of investor legally obligated to care for other human beings. In recent decades, however, the fiduciary duty of loyalty has been turned on its head and converted into a duty to ignore other human beings. Financial returns are now considered more important than the ...
-
Straitjacket investing: Passive has its limitationsOne might ask if passive strategies, originally designed to protect investors from “hurting” themselves from active management, might well be punishing investors instead.
-
Fiscal debt drama has chill for markets
he following comments were overheard at a recent meeting of Debt-aholics Anonymous.
-
Schapiro legacy a tougher stance on ESG issues
Mary L. Schapiro, who stepped down last month as chairman of the Securities and Exchange Commission, had a four-year tenure marked by significant accomplishment.
-
Misinformation adds to public pension plan woes
If a public or corporate official distributes false financial information that serves as the basis for unwarranted action by others, they are guilty of either fraud or negligence depending on whether it was signed off on knowingly or carelessly. Why then are academics not held to the same level of
-
Concerns rise with foreign litigation
Over the past decade, the governing boards of public pension funds and other institutional investors have acted swiftly to implement policies and procedures for monitoring U.S. securities class-action litigation.
-
Workers shorted on retirement readinessDefined contribution plan executives and their service providers are doing a lousy job getting participants prepared for retirement.
-
Profiteers and politicians: Two groups that need to clean up their actsAs politicians in Washington consider a resolution to the Fiscal Cliff, they could learn important lessons from people's opinion of profiteering.
-
Mutual fund ratings not all they're cracked up to beWhether an investor is a 401(k) plan sponsor or a participant, once any investor selects the asset classes in which they intend to invest, they face the difficult issue of selecting specific managers. A variety of methods have been used over time, but one method that seems to have captured the ...
