Multiple Retirement Plans: Investment Services
An integrated retirement plan not only helps ensure your retirement plans are working together to support your goals, but it also helps employees understand and appreciate all of the retirement benefits you offer. We will work together with your financial professional to help you customize an investment platform to meet your integrated retirement plan needs.
The member companies of The Principal provide a level of indemnification protection & fiduciary support through our:
- Breadth of investment options: Providing you choice
- Depth of expertise: Helping you meet your fiduciary needs
- Rigorous process: Disciplined framework & financial coverage[1], [2]
- Asset allocation flexibility: Helping to meet your plan participant needs
Providing you choice
You can select from our Sub-Advised Investment Options that are designed to be appropriate for retirement savings under employer-sponsored plans. They cover a wide range of asset classes and are managed by some of the industry's leading investment firms.
Our institutional approach allows us to deliver an attractive mix of more than 70 Sub-Advised Investment Options managed by more than 30 investment managers who are selected through our due diligence process.
We also make available a virtually endless menu of investment choices through our extensive Mutual Fund Network. More than 2,300 mutual funds from more than 145 fund families are available. And you have access to more than 20,000 additional mutual funds from third-party fund companies through the National Securities Clearing Corporation.
Helping you meet your fiduciary needs
To help you effectively prepare to meet your investment-related fiduciary responsibilities, our team of analysts use sophisticated analytics to monitor the investment options we make available. The team uses independent third party metrics and market indices providing a consistent process to evaluate and monitor the investment options on our investment platform.
Disciplined framework
One of the most important ways we can help you meet one of your fiduciary responsibilities is through our rigorous and disciplined due diligence process. We apply our due diligence process to:
- Sub-Advised Investment Options - we perform quantitative and qualitative monitoring allowing the member companies of The Principal to have fiduciary oversight and the ability to manage the investment manager selection process to identify, hire and retain top investment managers on these investment options.
- Mutual Fund Network investment options - we make quantitative data available to help you monitor and manage the investment manager selection process.
Financial coverage
In addition to our due diligence process, we also make available a financial coverage. Through the investment fiduciary support of The Principal Warranty you have a choice to receive a level of indemnification protection against three key areas of fiduciary concern:
- The Broad Range Requirement under ERISA 404(c)
- Qualified Default Investment Alternatives (QDIAs)
- Prudent monitoring
Helping to meet your plan participant's investment needs
To help you meet the diverse needs of your retirement plan participants, we provide a wide range of asset allocation choices. Our asset allocation flexibility gives your plan participants:
- Access to broadly-diversified investment choices
- Choices to streamline their investment decision making process
- Comprehensive selection of asset allocation choices
About Principal LifeTime
The Principal LifeTime portfolios, which are target-date portfolios, invest in underlying Principal Funds. Each Principal LifeTime portfolio is managed toward a particular target (retirement) date, or the approximate date the participant or investor starts withdrawing money. As each Principal LifeTime portfolio approaches its target date, the investment mix becomes more conservative by increasing exposure to generally more conservative investment options and reducing exposure to typically more aggressive investment options. The asset allocation for each Principal LifeTime portfolio is regularly re-adjusted within a timeframe that extends 10-15 years beyond the target date, at which point it reaches its most conservative allocation. Principal LifeTime portfolios assume the value of the investor's account will be withdrawn gradually during retirement.
Neither the principal nor the underlying assets of the Principal LifeTime portfolios are guaranteed at any time, including the target date. Investment risk remains at all times.
Have questions?
Contact a local representative today for more information or to find a financial professional in your area.
- [1]
- This is for informational purposes only and does not affect those terms and provisions defined in The Principal Warranty Investment Fiduciary Support and Service Warranty documents. For comprehensive warranty details on the levels of coverage we offer, see The Principal Warranty document(s) available at principal.com
- [2]
- The Principal Warranty is provided by Principal Life Insurance Company.
Sub-Advised Investment Options include Separate Accounts available through a group annuity contract with Principal Life Insurance Company and mutual funds available through the Principal Funds, Inc. Separate Accounts are made available through a group annuity contract with the Principal Life Insurance Company, Des Moines, IA 50392. Securities are offered through Princor Financial Services Corporation, 800.547.7754, member SIPC and/or independent broker/dealers. Securities sold by a Princor Registered Representative are offered through Princor®. Principal Funds Distributor, Princor, and Principal Life are members of the Principal Financial Group, Des Moines, IA 50392. They may not be available in all states or U.S. commonwealths. Ask your representative for more details
Before investing in mutual funds, investors should carefully consider the investment objectives, risks, charges and expenses of the funds. This and other information is contained in the free prospectus, which can be obtained by calling 800.547.7754 or from your local representative. Please read the prospectus carefully before investing.
Before directing retirement funds to a separate account, participants should carefully consider the investment objectives, risks, charges and expenses of the separate account as well as their individual risk tolerance, time horizon and goals. For additional information contact your plan sponsor, financial professional or call us at 1.800.547.7754.
The investment fiduciary support portion of The Principal Warranty applies to covered plan investment options that are part of an active retirement plan recordkept by Principal Life. 404(c) and QDIA coverage applies only to plans subject to ERISA. In general, nonqualified plans are not regulated under ERISA. Different investment products and financing options apply to nonqualified plans. No member company of The Principal assumes any additional fiduciary responsibility for any nonqualified deferred compensation plan. For purpose of nonqualified plans and plans not subject to ERISA, Principal Life indemnifies the Plan Representative who signs the Service Agreement.
Investment options are subject to investment risk. Shares or unit values will fluctuate and investments, when redeemed, may be worth more or less than their original cost. This does not apply, however, to the guaranteed portions of group annuity contracts issued by Principal Life that constitute guaranteed benefit policies as defined in ERISA §401(b)(2)(B).
Asset allocation does not guarantee a profit or protect against a loss. Investing in real estate, small-cap, international, and high-yield investment options involves additional risks. Additionally there is no guarantee this type of investment option will provide adequate income at or through retirement.
Equity investment options involve greater risk, including heightened volatility, than fixed-income investment options.
Principal Life is not a fiduciary in the broader context of operating any plan. The selection of any investment option on behalf of a plan is the fiduciary responsibility of the appropriate plan fiduciary, which is not Principal Life, nor any affiliate. Principal Life does not guarantee performance of any investment option (other than the portion of a group annuity contract that constitutes a guaranteed benefit policy as described in ERISA §401(b)(2)). Principal Life does not guarantee that any investment option will meet the criteria of any particular plan's investment policy statement or be suitable for use by any specific plan. The limited fiduciary tasks undertaken by Principal Life do not eliminate the responsibilities of the relevant plan fiduciaries for the prudent selection and monitoring of any investment option for a retirement plan. Please consult with your counsel or other advisor.
Delaware Charter Guarantee & Trust Company, conducting business as Principal TrustSM Company ("Principal Trust") is a member of the Principal Financial Group®. The Principal TrustSM Target Date Funds, is a series of collective investment funds maintained by Principal Trust, as trustee, under the Plan and Declaration of Trust of Principal TrustSM Target Date Collective Investment Funds, as amended from time to time ("Trust"). Principal Management Corporation ("PMC"), an affiliate of Principal Trust, provides nondiscretionary advisory services to Principal Trust with respect to the Principal Trust Target Date Funds. Principal Trust and PMC are fiduciaries subject to the Employee Retirement Income Security Act of 1974, as amended.
Principal Trust Target Date Funds are available only to qualified plans and governmental 457(b) plans. They are not mutual funds and are not registered with the Securities and Exchange Commission, the State of Delaware or any other regulatory body. Principal Trust Target Date Funds are not guaranteed by Principal Trust, PMC, any of their affiliates, the FDIC or any other governmental agency.
The value of the Principal Trust Target Date Funds will fluctuate so that when redeemed, shares or units may be worth more or less than the original cost. Past performance is no guarantee of future results.
Participation in the Principal Trust Target Date Funds is governed by the terms of the Trust and a Participation Agreement, the form signed by the retirement plan's fiduciary at the time the plan invests in the Principal Trust Target Date Funds. The retirement plan's fiduciary will also be provided with a Principal Funds, Inc. Institutional Class Shares Prospectus ("Prospectus") before the plan invests in the Principal Trust Target Date Funds. The Trust, Participation Agreement, and Prospectus are available from Principal Trust or Principal Life.
Insurance products and plan administrative services are provided by Principal Life Insurance Company. Principal Funds, Inc., is distributed by Principal Funds Distributor, Inc. Securities are offered through Princor Financial Services Corporation, 800.547.7754, member SIPC and/or independent broker/dealers. Securities sold by a Princor® Registered Representative are offered through Princor. Principal Funds Distributor, Princor and Principal Life are members of the Principal Financial Group®, Des Moines, IA 50392. Separate Accounts are made available through a group annuity contract with Principal Life, Des Moines, IA 50392. They may not be available in all states or U.S. commonwealths. Ask your representative for more details.
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