How will Qualified Retirement Plan accounts receive distributions?
Payments will be made to the plans, not directly to participants. Plan fiduciaries will be responsible for working with their plan provider to choose the allocation method that is appropriate for their plan. Putnam’s Distribution Plan proposes four allocation methods. The Department of Labor has stated in DOL Field Assistance Bulletin 2006-01 that it will view the use of a methodology provided (but not required) under a distribution plan as satisfying ERISA’s exclusive benefit and prudence requirements under ERISA Sections 404(a)(1)(A) and (B) with respect to a method for allocating assets to participants and beneficiaries.
