Employers need to keep close tabs on the investment options that they present as low-risk options.
Kent Peterson, director of investment services at Securian Retirement, a unit of Minnesota Mutual Companies Inc., St. Paul, Minn., gives that advice in a commentary on use of stable value investments in 401(k) plans.
A U.S. Department of Labor advisory council recently held a hearing on stable value funds.
One issue discussed was the argument that regulators have unfairly prevented employers from using stable value funds as a default investment option for employees who feel to tell employers how to allocate their assets.