National Retirement Partners Releases Special White Paper Report

How to avoid Fiduciary risks in a rising interest rate environment.

(Capistrano Beach, CA) National Retirement Partners, LLC a national retirement plan advisory firm with 81 members, released today a special White Paper Report titled, “Rising Interest Rates – Caveat Emptor. How to avoid 401k Fiduciary risks in a rising interest rate environment.”

According to the Report, General Account Stable Value investment options pose potential risks for 401k participants and fiduciary risk for plan sponsors.

“For defined contribution plan sponsors, a much less understood consequence of rising rates can have significant implications to one of the most popular investment options, the Stable Value Option;” according to the papers Author and executive vice president at National Retirement Partners, Robert Francis. “With 17 straight Fed rate increases, participants may suffer transfer restrictions on their Stable Value assets” Francis elaborates.

Another concern from a Fiduciary standpoint expressed by the Report is the risk of experiencing a significant market value adjustment if the plan decides to remove this investment option or change service providers.

The Report summarizes by emphasizing the critical importance for 401k Advisors to know what their clients are invested in, know what alternatives may exist within the existing providers’ lineup and most importantly make sure Plan Sponsors understand the risk of a rising interest rate on this element of their plan.

Commenting on the Report, National Retirement Partners president and CEO William R. Chetney said “Our commitment is to our member organizations and their clients as well as the retirement plan industry overall. We have not experienced a rising interest rate environment in over 10 years and most Plan Sponsors as well as their participants probably don’t realize the risks.”

A complimentary copy of the Special White Paper Report is available on the National Retirement Partners website at www.n-r-p.com/report.htm. Adobe Reader is required to view the PDF file.