5 Things the DOL Wants You to Know About TDFs – That You May Have Overlooked
Target-date funds continue to expand in usage and popularity – but there are some things the Labor Department wants you to know about TDFs that you may have overlooked. When the Labor Department published its “ Target Date Retirement Funds – Tips for ERISA Plan Fiduciaries ” in 2013, I was pleased to see it, and to discover that it could be read 1 (and understood) in about 15 minutes. But in preparation for a recent webcast on the topic, I took a fresh look at that document, and found some nuggets that I hadn’t really picked up on the first time around. It’s Not Just About Fees and Performance As part of a reminder about the importance of establishing a process for comparing and selecting TDFs, the Labor Department specifically references considering prospectus information, such as information about performance (investment returns) as well as investment fees and expenses. However, in that same topic point, the agency says that plan fiduciaries should consider how well the TD...