Los Angeles partner Fred Reish was quoted in a recent article in Workforce. The article, titled, “Companies Roll Out Re-enrollment Strategy,” discussed how re-enrollment is a strategy more plan sponsors are using to help put their employees on the right investment track. By doing this, employers can shift 401(k) money out of their current investments and into a federally approved fund, and are protected from being sued if they follow the rules of the Pension Protection Act of 2006 when doing the re-enrollment.
“Even with prudently selecting mutual funds and providing investment education, many plan sponsors don’t realize they can be responsible for participants’ bad decisions. Adopting a re-enrollment strategy can shield [plan sponsors] from potential liability,” said Fred.
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