In light of mounting, complex responsibilities, American Century Investments has created a new online tool to help fiduciaries select a target-date fund option.
“Target-Date Blueprint” is an online solution that organizes the U.S. Department of Labor’s Target Date Retirement Funds—Tips for ERISA Plan Fiduciaries (DOL Tips) into three steps. According to the announcement, the tool can help assist with the prudent selection process for TDFs that are used as the plan’s QDIA, as well as assist plans seeking to maintain their safe harbor status. It also may reduce the potential for litigation.
The Target-Date Blueprint was built in response to advisor demand, according to Glenn Dial, American Century senior retirement strategist. “We learned that, while the DOL Tips were helpful, many clients wanted the Tips organized into a framework that enabled advisors to document and implement them into a single document,” Dial notes. “Additionally, we incorporated the Tips into a forward-looking optimization process to help advisors determine which Target Date Funds may be suitable for a particular plan.”
The three steps include aligning characteristics, analyzing options, and documenting and verifying the process for fiduciaries’ records.
