Take My Advice…Please — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Take My Advice…Please

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It's no secret that most employees don't have a clue about how to invest their 401(k) contributions. The 2006 Pension Protection Act (PPA) allows plan sponsors to hire outside investment advisors to provide one-on-one advice to plan participants and beneficiaries. Proposed regulations, which implement this PPA provision, won't become effective until 60 days after final regs are issued. However, plan sponsors who will be interacting with outside advisors should familiarize themselves with the regs' main provisions now.


Preliminary Matters  

The PPA allows plan sponsors to choose between in-person advice provided by an outside investment advisor, or advice driven by computer models. Regardless of how advice is provided, outside investment advisors must meet some basic standards. For example, prior to their dispensing any advice or firing up any computer model, the proposed regs would require outside investment ad...(register to read more)

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