Fiduciary Protection and Other Benefits of Risk-Based Strategies in a Defined Contribution Plan Investment Menu

Fred Reish authored a white paper in which he discusses how target risk funds can act as a best practice for plan fiduciaries and comply with ERISA’s investment standards. The approach contemplates plans offering three tiers of investments: Default investing in target date funds (for “do it for me” participants), participant self-assessment and selection of target risk funds (for “do it with me” participants) and individual investment for self-directed participants.