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.
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers