Retirement plan sponsors have a duty to screen target-date fundofferings. However, a January analysis by Janus questions ifthey're doing enough to vet the underlying funds in TDFs.

Seventy percent of the target-date funds analyzed in the reportinclude underlying managers who would fail to meet customaryinvestment policy statement (IPS) standards in at least twocategories.

“Plan fiduciaries who comply with a well-constructed IPS take animportant step toward meeting certain [Employee Retirement IncomeSecurity Act] responsibilities, including the duty of prudence,”authors Matt Sommer and Joel Evenhouse wrote. “Among other things,an IPS defines criteria that sponsors use to evaluate and, ifnecessary, replace certain underperforming managers.”