10/31/2007
Department of Labor Issues Long-Awaited Guidance on Defined Contribution Plan Default Investments
Employee Benefits & Executive Compensation Client Memorandum
Howard
Levine
After much delay, the Department of Labor (DOL) has issued final regulations setting forth the conditions for fiduciary relief when plan assets are invested in a qualified default investment alternative (QDIA) in the absence of participant direction. The final regulations are generally effective on December 24, 2007. The final regulations follow in large part the previously proposed regulations but add a transition provision for stable value funds and permit capital preservation vehicles to be used on a short-term basis.