ICI Provides Input on Technical Issues Concerning "Qualified Default Investment Alternatives"

Washington, DC, December 13, 2007 - An Institute submission to the Department of Labor (DoL) provides input on the agency's planned guidance concerning a recently adopted regulation on the topic of qualified default investment alternatives in retirement plans. The final regulation addresses how retirement plan sponsors obtain fiduciary relief with respect to default investment options for plan participants who are automatically enrolled in the plans.

Background
DoL is preparing guidance to address interpretive questions arising under a final regulation issued in October 2007 that encourages default investments appropriate for long-term investing. The Pension Protection Act of 2006 (PPA) required DoL to issue the regulation.

ICI's letter provides input on the formulation of the expected guidance, in the form of questions and answers that address several interpretive issues identified by Institute members.

ICI Position
ICI's question-and-answer format to its remarks covers topics such as the transition period for fiduciary relief under ERISA and the application of market timing restrictions on plan participants who decide to move assets out of the default investment.

Related Links
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