Does It Spark Joy?

The KonMari Method™ – an organization technique developed by Marie Kondo that has recently achieved cult status – encourages people to discard any belongings that do not spark joy. Retirement Director Ben Rizzuto suggests this approach could be used to clear up some of the legal and regulatory clutter surrounding 401(k) plans, and offers strategies to help plan sponsors ensure participants’ needs are being met.

Does It Spark Joy? - Ben Rizzuto, CRPS®

Key Takeaways

  • The Employee Retirement Income Security Act of 1974 (ERISA) sets minimum standards for qualified retirement plans, but the definition of “reasonable” fees and expenses is not always black and white.
  • Several key court cases in which plan sponsors were charged with violating their fiduciary duties have produced decidedly different outcomes, bringing us no closer to a clear definition of reasonability.
  • Despite the uncertainty, fiduciaries can use existing guidelines to perform a thoughtful and well-reasoned “tidying up” of their fund lineups to ensure each fund is meeting the needs of plan participants.

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