Are 401(k) investment menus set solely for plan participants?

Pool, Veronika K., Clemens Sialm, and Irina Stefanescu. “Are 401(k) investment menus set solely for plan participants?”. Issue in Brief 15-13, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, August 2015. http://hdl.handle.net/2345/bc-ir:104660.
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Abstract

The brief's key findings are: (1) Mutual fund companies that are trustees of 401(k) plans must serve plan participants' needs, but they also have an incentive to promote their own funds. (2) The analysis suggests that these trustees tend to favor their own funds, especially their poor-quality funds. (3) And 401(k) participants do not offset this bias by shifting their savings away from trustee-affiliated funds. (4) In short, fund companies serving as trustees often make decisions that appear to adversely affect employees' retirement security.

Title
Are 401(k) investment menus set solely for plan participants?
Author
Pool, Veronika K.
Sialm, Clemens
Stefanescu, Irina
Center
Center for Retirement Research
Genre
report
Date Issued
August 2015
Publisher
Center for Retirement Research at Boston College
Series Title
Issue in Brief
Series Number
15-13
Version Identification
Version of record.
Persistent Link
http://hdl.handle.net/2345/bc-ir:104660
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
Financing retirement

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