PLANSPONSOR: Fiduciary Responsibilities for DC Plan Loans

Multiple stories in the press about the fiduciary exposure of 401(k) loan programs have the same theme: Plan loans are investments.  What does that mean for plan sponsors?

Loan programs are on the DOL’s radar as investments

Tom Olson“Because the Department of Labor [DOL] views plan loans as investments, they should be treated with the same level of care and scrutiny as any other investment,” says Rob Reiskytl, a partner in retirement consulting division of Aon in Minneapolis.

Another option available to sponsors is to make loan insurance available to participants, he adds.

Read PLANSPONSOR’s article on the subject here.

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