If a 401(k) investment underperforms, does that mean the fiduciary made the wrong call? Not necessarily.

A new DOL proposal puts the focus squarely on how decisions are made, not just how investments perform.

Our latest Benefits + Compensation alert breaks down the proposed “safe harbor” for investment selection and what fiduciaries should be thinking about now, especially when it comes to documentation and process.

A few themes worth watching:

  • Process over outcomes
  • Documentation as a defense
  • A structured approach to evaluating investments

Department of Labor Proposes Fiduciary Safe Harbor for Selection of 401(k) Investment Options – Davis+Gilbert LLP