DOL Tips

Does your plan follow the DOL tips on target date funds?

To retirement vs. through retirement
Proprietary vs. non-proprietary TDFs
Value-for-cost

 
Selecting & monitoring TDFs
 
Participant education
 

DOL guidance

Considerable variations exist and a key difference is type of glide path. Does a specific target date series use a "to" or "through" approach?

What it means

Look at equity exposure at retirement date because some "to" retirement series can be more aggressive than some "through" retirement series.

How we stack up

All Principal series are managed through retirement - for 15 years.

DOL Tips

Does your plan follow the DOL tips on target date funds?

To retirement vs. through retirement
Proprietary vs. non-proprietary TDFs
Value-for-cost

 
Selecting & monitoring TDFs
 
Participant education
 

DOL guidance

It is important to provide effective employee communication.

What it means

Help participants understand what a target date series is and what it isn't.

How we stack up

We provide ongoing, in-the-moment education through various delivery methods. We'll talk more about this.

DOL Tips

Does your plan follow the DOL tips on target date funds?

To retirement vs. through retirement
Proprietary vs. non-proprietary TDFs
Value-for-cost

 
Selecting & monitoring TDFs
 
Participant education
 

DOL guidance

Consider custom or non-proprietary TDFs over TDFs using a vendor's proprietary underlying funds.

What it means

Look for diversification of underlying investment managers.

How we stack up

We're muli-managed; always have been.

DOL Tips

Does your plan follow the DOL tips on target date funds?

To retirement vs. through retirement
Proprietary vs. non-proprietary TDFs
Value-for-cost

 
Selecting & monitoring TDFs
 
Participant education
 

DOL guidance

TDF costs can vary significantly, both in amount and types of fees.

What it means

Low fees and fiduciary protection are not necessarily linked. Look at plan needs to determine your target date fund, not just fees.

How we stack up

Use our sample investment policy statement to record your plan needs and your decisions.

DOL Tips

Does your plan follow the DOL tips on target date funds?

To retirement vs. through retirement
Proprietary vs. non-proprietary TDFs
Value-for-cost

 
Selecting & monitoring TDFs
 
Participant education
 

DOL guidance

Follow an objective process for selecting a TDF, and remember to monitor it to ensure it should continue to be offered.

What it means

Develop and implement a process for selecting and monitoring investment managers, and then document it.

How we stack up

Use our sample investment policy statement to record your plan needs and your decisions.