The PPA allowed companies to automatically enroll their employees. But, regulators still have to decide what plans works best. Conservative “stable value plans” backed by insurance companies, or riskier “life cycle” or target date funds,” a mixture of stocks and bonds that change over time, backed by mutual funds.
Recently PLANSPONSOR CEO and Founder Charles Ruffel was interviewed on the subject of “The Best Default for Your Retirement.”
text and audio of the interview are online (about 7 minutes into the program) at http://marketplacemoney.publicradio.org/display/web/2007/06/22/retirement_default/