Are Single-Manager Target-Date Funds Risky for Large Plan Fiduciaries?
July 20, 2012
Many US DC plans chose a single manager target-date fund default option following the arrival of the Pension Protection Act of 2006 (PPA). These funds have several drawbacks, and their inflexibility poses potential risks for large plan fiduciaries. While single-manager target-date funds may remain viable for smaller plans, there are now better options for larger plans, given their size and scale.