goldenhinde

CSX’s Hedge Fund Battles: A Cautionary Tale for Pensions?

As a technical matter the Department of Labor is on record as stating tha that derivatives (it does not distinguish what type), when held as an asset of the retirement Trust are Plan assets and therefore subject to the fiduciary monitoring duties JUST LIKE ANY OTHER PLAN ASSET.

The answer to your question is that very few - SORRY, VERY VERY FEW fiduciaries ever exam the issues you brought forth in your article. There are various reasons for this. They aren't that educated on the topic, there is no consequence to them if they ignore the issue and no one is looking over their shoulder with sufficient rigor to have any impact on their collective state of inattentiveness.