Performance, investment fees and expenses.
Those, according to new guidelines from the Department of Labor, are three key areas that ERISA plan fiduciaries should spend plenty of time considering when they look at target date funds and try to decide the differences between providers.
The department's Employee Benefits Security Administration also recommended fiduciaries should establish a process for the periodic review of selected TDFs.
Take the time to understand the fund’s investments and how these will change over time, it said in a new tip sheet. It also is important to review the fund’s fees and investment expenses, according to the EBSA.