Washington, D.C., counsel Bradford Campbell was quoted in Plan Adviser in an article titled, “DOL's TDF Guidance 'Mischaracterizes the Market.’”

The article compiles industry practitioners’ reactions to recent guidance from the Department of Labor (DOL) on selecting and monitoring target-date funds (TDFs).

The DOL’s guidance suggests plan fiduciaries inquire about whether a custom or non-proprietary TDF would be a better fit for their plan than a pre-packaged TDF product.

Brad said that, at the end of the day, the plan fiduciary must have a prudent process that takes into account the relevant factors when deciding whether to offer a TDF and when selecting a particular fund.

"DOL's single paragraph of guidance on proprietary or custom funds says little more than that these are different product variations, and as such, are additional factors to consider in a prudent process."

Brad said in his view, they are no more or less important than any of the other relevant factors considered in making a fiduciary decision, such as cost or glide path. "There is nothing inherently superior about one class of products over another-the issue is how a particular product suits the needs of a particular plan," he stated.

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