Annuities: The straw that breaks the back of retirement plan fiduciaries

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Retirement plan fiduciaries can’t catch a break. Their responsibilities and personal risks keep increasing. The pressure builds, on all fronts: regulatory, litigation, participant demand.  

The recent Supreme Court decision in Hughes v. Northwestern will undoubtedly embolden plaintiff’s lawyers. Inflation has clocked in at rates not seen in 40 years, potentially undermining investment policy statements and product line-ups. Recent regulatory activity at the Department of Labor includes: a flip-flop in its position on ESG, an aggressive initiative concerning cybersecurity, and a stern warning regarding cryptocurrencies. And, now plan participants are clamoring for lifetime income options within 401(k) plans which are pushing plan fiduciaries into the brave new world of annuity contracts.