401k Company Investment Plan, Performance and Measurement
May 10th, 2008 | by admin |In general, all investment options are basically expected to perform better than their said performance standards, net of fees. No matter what, the Committee has the full discretion and reserves the right to terminate or offer an investment option at any given time, for any reason.
Once termination decision of an investment option is made, asset transfer and liquidation needs to be handled to the best benefit of the 401k company investment plan using one of the following approaches:
· Remove the non-performing investment option and replace with an alternative manager and move all the existing assets directly to the alternative manager.
· Freeze the terminated the assets and direct new assets to a replacement manager.
· Phase out the manger within a given time period. It is ok to continue the manager but always better to add a competing manager.
