Let's be clear about fiduciary statusContributor Dan Notto
An alarming percentage of individuals who oversee company 401(k) or other defined contribution (DC) plans are not aware of—or are uncertain about—their status as fiduciaries under the Employee Retirement Income Security Act (ERISA). But those who know they are fiduciaries are more confident that their organizations have solid fiduciary practices—and the plans they oversee are more likely to contain features designed to help improve participant outcomes.
These are some of the key findings from J.P. Morgan’s 2017 Defined Contribution Plan Sponsor Survey. Only those who described their responsibilities as ones that would categorize them as fiduciaries were included in the survey. In short, while 100% of respondents were fiduciaries, 43% said they were not fiduciaries or not sure if they were. This finding is not only alarming, it is unchanged from what we saw in 2015 (EXHIBIT 1).
100% of respondents are fiduciaries, yet many are not aware of this fact
EXHIBIT 1: “ARE YOU YOURSELF A FIDUCIARY TO YOUR ORGANIZATION’S RETIREMENT PLAN(S)?”
This year’s research shows the benefits of being proactive, including greater adoption of industry best practices to position more participants for greater retirement funding success.
This set of resources aims to help plan sponsors’ understand their role as a defined contribution plan fiduciary.
This document is a general communication being provided for informational purposes only. It is educational in nature and not designed to be a recommendation for any specific investment product, strategy, plan feature or other purposes. By receiving this communication you agree with the intended purpose described above. Any examples used in this material are generic, hypothetical and for illustration purposes only. None of J.P. Morgan Asset Management, its affiliates or representatives is suggesting that the recipient or any other person take a specific course of action or any action at all. Communications such as this are not impartial and are provided in connection with the advertising and marketing of products and services. Prior to making any investment or financial decisions, you should seek individualized advice from your personal financial, legal, tax and other professional advisors that take into account all of the particular facts and circumstances of your own situation.
TARGET DATE FUNDS. Target date funds are funds with the target date being the approximate date when investors plan to start withdrawing their money. Generally, the asset allocation of each fund will change on an annual basis with the asset allocation becoming more conservative as the fund nears the target retirement date. The principal value of the fund(s) is not guaranteed at any time, including at the target date.
Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. References to future returns are not promises or even estimates of actual returns a client portfolio may achieve.
J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase & Co. and its affiliates worldwide. J.P. Morgan Funds are distributed by JPMorgan Distribution Services, Inc.; member of FINRA.
© 2017 JPMorgan Chase & Co. All rights reserved.