The U.S. Department of Labor (DOL) recently issued a final regulation addressing the selection of default investment options for defined contribution plans (29 CFR 2550.404c-5). The regulation sets out the types of products in which participant contributions can be invested in the event the participant has failed to provide investment instructions. It should provide a significant degree of certainty that will be helpful to plan sponsors and plan service providers. A further discussion is attached.
This article has been posted with the permission of M. Lee Smith Publishing.
