The DOL can be quite punitive in their investigations" J.C. Attorney said. And he was previously employed by the DOL
What is a Pension Portfolio Statement?
It's a short statement of how YOU, employer/employee are going to compare whats available to you now and what else in the marketplace is assailable and would it warrant a more serious query?
It's a requirement.
If you don/t have one get one immediately. So I asked John, "Is there a fine or penalty if a client doesn't have a statement?" He simply said "NO, But if an audit happpens, the path of the auditors is on a seriously different direction. They take fiduciary liability quite seriously at the DOL."
What does that mean?
YOU, Personally are a fiduciary for your employers plan. "It's okay I/m with a/an (Merrill, Fidelity, Insurance Company, my bank. you provide the line)" It's not okay.
If I am an employee of your company and I learn that my neighbors 401(k), 3b, performs better without substantial risk I have the legal right to sue. Not the plan, the employer but the plan, the employer, you, your spouses favorite living room set, the vacation house. It's all on the line and it's personal. Explain this after the fact.
Oh yes, those, "lifestyle" funds help but they do not relieve you of your liability. Sadly, nothing can. We can only give you an Advantage.
We've managed pension plans since they were defined benefit plans. In fact a Pension Actuary has been part of the MerrillAdvantage group's staff since 1985. M.Paul Turner.
You may be seeing something like this now...
- The current value of your pension plan.
- Where you are invested.
- How much you have saved in the past year.
- An estimate of the value of pensions income you can expect when you retire.
This estimate of pension income is really useful part of your yearly statement as it can help you plan ahead for your retirement. From April 2014 the illustrations we provide will take into account the effect of inflation on your savings.
When we take inflation into account, we show you the equivalent income today which will help you understand how far your estimated pension could stretch when you retire. You can use this tool to see how over time inflation will affect your monthly outgoings.
Your illustration is an estimate based on a range of assumptions. It is not guaranteed and it could change between now and when you retire. So, whenever you get an illustration you should check to make sure your retirement savings are on course to provide you with the income you want.
That's a good start,
Now you, the company (employer) must draft a statement of how you are personally going to manage this.
This is not a solution: "I will quote and evaluate every year" I hope you have a lot of time. Yes it would satisfy the DOL and it isn't required.