The Employee Benefits Security Administration is giving more advice about default retirement plan investment options.
The new U.S. Department of Labor Qualified Deferred Investment Alternatives regulations, completed in October 2007, apply to 403(b) nonprofit retirement plans as well as to 401(k) plans, Robert Doyle, an official with the department’s Employee Benefits Security Administration, writes in EBSA Field Assistance Bulletin Number 2008-03.
Doyle also notes that a plan sponsor is responsible for selecting and monitoring a QDIA in a prudent manner even if the QDIA regulations relieve plan sponsors from liability for the QDIA investment results.
In another section of the bulletin, Doyle describes the kind of existing stable-value fund default investment options that qualify for “grandfathering.”
The Department of Labor has corrected the grandfather relief section of the completed regulations “to ensure broad application of this relief to stable-value products and funds,” Doyle writes in the bulletin.