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The Principal Releases Fiduciary Warranty
The warranty offers plan fiduciaries financial protection for covered investment fiduciary support and services, and the written warranty, which is available for no additional costs, helps plan fiduciaries and financial professionals manage their fiduciary risks.
The Principal Warranty offers protection for three areas of fiduciary concern:
- Broad Range Requirement under 404(c)
- Qualified Default Investment Alternatives
- Prudent monitoring on an investment-by-investment basis
Fiduciaries are able to select any or all areas of these for warranty coverage. If one investment option in a retirement program line-up no longer fits warranty coverage, other investment options in the line-up would continue to be covered. With The Principal Warranty, plan sponsors are also automatically eligible for the service warranty, which provides plan fiduciaries a level of indemnification protection.
“While we can’t eliminate the fiduciary burden for plan sponsors, we are able to provide a level of support to help them feel more confident in their duties,” said Monica Kirgan, vice president of retirement and investor services at The Principal. “We put our warranty in writing because we stand behind our services and our investment fiduciary support.”