Why should a retirement plan consider including target-date portfolios in its investment menu?
The Pension Protection Act of 2006, and related Department of Labor Employee Benefits Security Administration Proposed Rule 29 CFR 2550 extends certain safe harbor protections to plans whose default investment(s) meet certain requirements. Target date investments, when appropriately implemented, are among the default investments that can meet the safe harbor requirements. For more information on proposed rules regarding qualified default investment strategies, please see http://www.dol.gov/ebsa/regs/fedreg/proposed/2006008282.pdf pages 56810-11.
