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

Seventy percent of the target-date funds analyzed in the report include underlying managers who would fail to meet customary investment policy statement (IPS) standards in at least two categories.

“Plan fiduciaries who comply with a well-constructed IPS take an important step toward meeting certain [Employee Retirement Income Security 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, if necessary, replace certain underperforming managers.”