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Compliance April 27, 2010
DoL Plans to Amend Target-Date QDIA Rules
The U.S. Department of Labor (DoL) has announced plans to change a 2007 mandate requiring that employers give participants more target-date fund information.
Reported by Fred Schneyer
In its latest summary of upcoming rulemaking activities, the DoL said it expects to have the new rule governing target-date disclosure for qualified default investment alternatives (QDIA) in August. Under the 2007 regulation, target-date retirement funds were one of several default investment funds to which employers can direct contributions made on behalf of employees enrolled automatically or who failed to specific investment selections (see “Reaction to Final QDIA Regs by Industry Professionals is Positive”).
“This amendment will provide more specificity to fiduciaries as to the investment information that must be disclosed in the required notice to participants and beneficiaries,” the DoL said in the. “This amendment also will enhance the information that must be disclosed concerning targetdate, or similar age based, qualified default investment alternatives.”
The Labor Department also said it will publish guidance this spring to assist employers in evaluating and selecting target-date funds.