More Details Given on EBSA/SEC Hearing on
Target-dates
May 22, 2009 (PLANSPONSOR.com) - The U.S. Department
of Labor's Employee Benefits Security Administration (EBSA)
and the Securities and Exchange Commission (SEC) have
provided more information regarding a one-day hearing on June
18, 2009, to explore issues relating to target-date funds and
other similar investment options.
A news release said the "purpose of the hearing
is to examine the need for additional guidance given the
importance of these investments to the retirement savings
of investors."
The agencies said witnesses will address topics
relating to:
-
how target-date fund managers determine asset
allocations and changes to asset allocations;
-
how managers select and monitor underlying
investments;
-
the extent to which the foregoing, and related
risks, are disclosed to investors and the adequacy of
that disclosure; and
-
the approaches or factors to compare and
evaluate the funds.
After a similar hearing in February, the U.S.
Senate Special Committee on Aging noted that the DoL has
issued regulations allowing target-date funds to be used
as a qualified default investment alternative in
employer-sponsored retirement plans, but there are no
requirements regarding the composition of target-date
funds and the appropriate ratio of stocks and bonds as
the fund nears its target (see
Senate Committee Takes Aim at
Target-Dates
).
The EBSA/SEC hearing, first announced last week (see
EBSA/SEC to Hold Target-Date Fund
Hearing
), will begin at 9:00 a.m. in the department's
auditorium, 200 Constitution Avenue, NW in Washington,
D.C.. Written requests to testify at the hearing and
topical outlines should be submitted by June 5,
2009.
Persons wishing to testify at the hearing should
submit a request to speak and an outline of topics to be
discussed to
e-ORI@dol.gov
, or to Office of Regulations and Interpretations, Employee
Benefits Security Administration, 200 Constitution Ave.,
N.W., Washington, D. C. 20210.
Comments also may be submitted directly to the SEC
using instructions available on the agency's Website,
www.sec.gov
.
The agencies said the hearing agenda will be
available by June 10, 2009.
Rebecca Moore
editors@plansponsor.com