Interview of Pam Perdue regarding the problems of Target Date funds in retirement plans appearing in Treasury & Risk, a finance publication.
Document Excerpt
One recent attempt to solve the problem of workers’ paltry retirement savings—target-date funds—is showing some cracks amid the market meltdown. CFOs and other plan officials are increasingly concerned that such funds rely too heavily on stocks at a time when equity values have plummeted and that their use may expose plan sponsors to legal liability. Meanwhile, some fund companies are moving to modify the asset allocations of their target-date funds.
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