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Release Date: December 1, 2006
Release Number: 06-2018-NAT
Contact Name: Gloria Della/Peter Hong
Phone Number: 202.693.8664/202.693.4676
Washington - The U.S. Department of Labor’s
Employee Benefits Security Administration (EBSA) today announced
publication of two “requests for information” (RFI) to assist the
department in implementing the investment advice statutory exemption
under the Pension Protection Act (PPA) relating to 401(k)-type plans and
individual retirement accounts (IRAs). The RFIs are to be published in
the December 4, 2006 Federal Register.
The PPA amended the Employee Retirement Income
Security Act (ERISA) by adding a new prohibited transaction exemption
that allows greater flexibility for investment advisers to give advice
to participants of 401(k) plans and IRAs.
One of the ways in which investment advice may be
given under the exemption is through the use of an unbiased computer
model. The computer model must be certified by an independent expert
under rules to be prescribed by the department. The RFI on investment
advice for 401(k)-type plans solicits information to assist the
department in determining what expertise and procedures may be needed to
qualify an expert to certify a computer model under the exemption. The
PPA also requires the department to issue a model notice on fee
disclosures related to the advice. To aid the department in issuing this
notice, the RFI also solicits information on the types of fee disclosure
materials currently used and their usefulness to plan participants.
The RFI on investment advice for IRAs will assist the
department in fulfilling its obligation under the PPA to assess the
feasibility of using computer models to provide advice to IRA
participants. The PPA requires the department to solicit information
from at least the top 50 IRA trustees and other entities offering
computer model investment advice programs. A separate copy of the RFI,
in addition to its publication in the Federal Register, will be provided
to those entities so identified to ensure their receipt.
Written comments on the RFI for investment advice for
401(k) plans should be addressed to the Office of Regulations and
Interpretation, Employee Benefits Security Administration, Room N-5669,
U.S. Department of Labor, 200 Constitution Avenue, NW, Washington, DC
20210, Attention: 401(k) Plan Investment Advice RFI. Written comments on
the RFI for investment advice for IRAs should be submitted to the same
address, Attention: IRA Investment Advice RFI. The public also may
submit comments electronically by email to e-ori@dol.gov (for the 401(k)
Plan Investment Advice RFI) or e-oed@dol.gov (for the IRA Investment
Advice RFI), or through the federal e-rulemaking portal at
www.regulations.gov.
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 202.693.7765 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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