The chairpersons of two of the leading retirement plan committees in Congress called for a review of target-date funds, questioning both the asset allocation of those funds at retirement, and the composition of asset classes in the funds overall. It’s time for YOU to weigh in.
Specifically, Sen. Patty Murray (D-WA), Chair of the Senate Committee on Health, Education, Labor & Pensions, and Rep. Robert Scott (D-VA), Chair of the House Committee on Education & Labor, have written to the head of the Government Accountability Office (GAO), asking them to conduct a review of target-date funds (TDFs).
In addition to expressing concerns about the amount of equity investment in 2020 target-date funds, the letter also calls out moves made by the Department of Labor under the Trump Administration which they say “paved the way for the use of potentially higher risk and more lightly-regulated ‘alternative’ assets, such as private equity.” The letter goes on to note that, “Little is known about the extent to which TDFs offered in employer-provided retirement plans include alternative assets and how those TDFs with alternative assets impact participants’ fees and returns.”
This week, we’d like to know what you think—and what’s going on with the target-date funds you work with. REPLY to this week’s NAPA-Net Reader Poll at https://www.research.net/r/TXF65DN.
And we’ll have it all sorted out for you on Friday.
