The Employee Benefits Security Administration has published a draft of rules that could help create default investment alternatives for participant-directed retirement plans.
The proposed regulation would help EBSA, an arm of the U.S. Department of Labor, implement the automatic 401(k) member enrollment provisions of the new federal Pension Protection Act.
EBSA officials note in a preamble to the proposed regulation, which appears today in the Federal Register, that the cost of any default investment alternatives will be one concern.
“A plan fiduciary would be required to carefully consider investment fees and expenses in chosing a qualified default investment alternative,” EBSA officials write.
A copy of the proposed regulation is on the Web at Document Link