US - The fiduciary duty on corporate pension plans has been tackled by a new Nationwide Financial Services solution.
Fred Reish, ERISA attorney and collaborator on the project, commented: "It helps reduce risk and the possibility of a fiduciary lawsuit against the plan sponsors, while at the same time improving the investment options and retirement preparation for their employees."
Nationwide's solution would mean using targeted maturity funds as the core line up to a retirement plan. This would ensure employees invested in funds specifically designed for retirement savings, one of the ERISA stipulations.
Additionally, the Nationwide Fund Window would allow employees with more investment experience to craft their own portfolio without any additional charge.
Bill Jackson, president, Nationwide Retirement Plans, said: "We wanted to find a solution that meets the collective retirement savings needs of America's workers, while helping plan sponsors reduce their fiduciary liabilities."
In conjunction with ERISA specialists, Nationwide has produced a white paper entitled Nationwide Retirement Innovator: Fiduciary protection under 404(c) to help plan sponsors provide retirement provision and be protected against potential lawsuits.
This week's edition of Professional Pensions is out now.
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