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Release Date: April 29, 2008
Release Number: 08-560-NAT
Contact Name: Gloria Della/Richard Manning
Phone Number: 202.693.8664/202.693.4676
Washington – The U.S. Department of Labor’s
Employee Benefits Security Administration today announced publication of
technical corrections to the final regulation on qualified default
investment alternatives along with guidance to clarify the scope and
meaning of the final rule.
On October 24, 2007, the department published final
rule to implement Pension Protection Act provisions providing a safe
harbor from liability for fiduciaries of plans in which the
contributions of workers who do not provide investment direction (such
as automatically enrolled workers) are invested in “qualified default
investment alternatives” or QDIAs. The QDIAs are designed to encourage
the investment of employee assets in investment vehicles appropriate for
long-term retirement savings.
The technical corrections affect three areas of the
final regulation on QDIAs. These include changes clarifying the preamble
example on “round-trip restrictions,” expanding the scope of who can
manage a QDIA to include a committee that is a named fiduciary of the
plan, and correcting the “grandfather” relief for stable value
funds.
Field Assistance Bulletin 2008-03 provides guidance on a series of frequently asked
questions raised by the employee benefit community since publication of
the final rule. The questions address issues relating to the scope of
the regulation, the notice requirements, the 90-day limitation on fees
and restrictions, management and asset allocation of QDIAs, the capital
preservation investment option, and the grandfather relief for stable
value funds.
An updated fact sheet on the default investment regulation can be found at
www.dol.gov/ebsa. The technical corrections are to be published in the
April 30 edition of the Federal Register.
U.S. Department of Labor news releases are accessible on the
Department's Newsroom
page. The information in this news release will be made available
in alternate format upon request (large print, Braille, audio tape or
disc) from the COAST office. Please specify which news release when
placing your request at 202.693.7828 or TTY 202.693.7755. The U.S.
Department of Labor is committed to providing America's employers and
employees with easy access to understandable information on how to comply
with its laws and regulations. For more information, please visit the
Department's Compliance
Assistance page.
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