Groom principal David Kaleda was quoted in the Plan Sponsor Council of America (“PSCA”) article, “How Should Fiduciaries Respond to Market Volatility?” where he emphasized the importance of reaffirming fiduciary responsibilities during periods of economic uncertainty and noted that market turbulence is a critical time to revisit fiduciary practices.
According to PSCA, Kaleda said that “whenever there is heightened uncertainty, ‘that is a good time for plan sponsors to refocus on their fiduciary duties under ERISA and related policies and procedures.’”
The platform reported that Kaleda noted that “specifically, fiduciaries ‘should consider reviewing plan investment options more closely and more frequently’ when they find themselves in volatile conditions.”
“Plan fiduciaries should look to see if one or more of their investments are performing worse, determine why, and make a reasoned determination as to whether a change should be made,” he said.
Kaleda added, “…Volatility often results in participants having a lot of questions and concerns. These can be mitigated with a good communication and investment education strategy.”
To read the article, click here.
