Stable-Value Funds And The Pension Protection Act

Law360, New York (November 13, 2007, 12:00 AM EST) -- The Pension Protection Act of 2006 encouraged automatic enrollment in individual account plans by amending section 404(c) of ERISA to provide a safe harbor for plan fiduciaries who invest participant assets in the absence of participant investment direction.

Once participants have been given an opportunity to direct the investment of their funds and fail to do so within a specified time, a plan fiduciary may invest those assets in a qualified default investment alternative (QDIA) and qualify for the safe harbor, assuming specified conditions are met....
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