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401(k) sponsors face change

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By Reporter
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1 minute read

Employers that automatically choose 401(k) investments for employees could face significant changes, according to United States-based global consulting firm Watson Wyatt Worldwide.

Employers that automatically choose 401(k) investments for employees could face significant changes, according to United States-based global consulting firm Watson Wyatt Worldwide.

New regulations issued by the US Department of Labor could lead many employers to move to equity-based funds when acting on behalf of employees who do not make investment selections.

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The new regulations will lay out how certain provisions in the Pension Protection Act, which President George Bush signed in August 2006, should be implemented.

Among the options the department is considering are rules that would limit the types of investments employers could make on employees' behalf in individual-account defined contribution plans, such as 401(k)s.

401(k) sponsors face change

Employers that automatically choose 401(k) investments for employees could face significant changes, according to United States-based global consulting firm Watson Wyatt Worldwide.

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