REGARDLESS OF THE CURRENT MARKET VOLATILITY, retirement plan fiduciaries should always be acting prudently and in the best interest of their participants. However, some sources say, there are particular questions fiduciaries should be asking themselves at this critical time.
Jim Scheinberg, managing partner, founder and chief investment officer at North Pier Search Consulting, says sponsors of defined benefit (DB) plans “should be checking that their assets are conforming to their written investment policy statement. The drawdown in equity values has been substantial.
“Their funding levels could be below their targets and possibly below the ranges to which they are bound within their investment policies,” he says. “Some of them are having conversations about rebalancing liquidity displacements in certain asset classes. The problem is, there is no bid in some of those areas, so timing has to be factored into the equation. Committees might need to be changing policies or extending latitude.”