TL;DR - The Labor Department issued an amendment to ERISA’s prudent-man rule to incentivize riskier investments.
Helpfulness - 3
Tags - pension, prudent-man, Labor Department, ERISA
- Why is the “prudent-man rule” named as such?
- How is investment deemed as prudent or imprudent?
- What department was responsible for overseeing ERISA?
- Amendment was made in 1979 to the Employee Retirement Income Safety Act (ERISA) in order to clarify “prudent-man rule”
- This amendment was meant to assure investors that the prudence-rule was flexible regarding riskier investments.
Follow up links: