Taking a fresh look – Active vs. passive plan investment options
Abstract: Prudence dictates that qualified plan sponsors periodically re-examine important policies of their retirement plans. One area to consider is the balance of actively managed funds vs. passively managed (index-based) fund options for the plan’s participants. This article discusses the difference between the approaches, and what plan sponsors should consider when balancing their retirement plans’ fund options. A short sidebar covers legal considerations in the investment selection process.