Thursday, June 25, 2009

Labor and SEC Scrutinize Target-Date Funds

In a joint hearing before the Department of Labor and the Securities and Exchange Commission, regulators questioned the make-up of target-date funds and the disclosures related to them. Such funds have been increasingly popular with plan sponsors -- as well as employees -- but even some with the same target date have widely divergent equity allocations.

By Robert Stowe England
Human Resource Executive Magazine

June 25, 2009

Closer scrutiny of target-date funds by the U.S. Department of Labor and the Securities and Exchange Commission is likely to prompt new regulatory initiatives by both government agencies.

A lengthy day-long joint DOL-SEC hearing on June 18 highlighted a number of issues facing employers that include target-date funds as options in company-sponsored plans, especially when the target-date funds are designated as a default investment.

To read the full story at Human Resource Executive click on this link:
http://www.hreonline.com/HRE/story.jsp?storyId=225086569

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