Stable Value funds focus of DOL advisory council hearings

July 23, 2009

The DOL's ERISA Advisory Council is considering if further stable value fund regulation or guidelines are necessary in the aftermath of the financial markets’ performance since last September. The council held hearings on the matter to determine if DOL's Employee Benefits Security Administration should create new regulations for plan sponsors and retirement services providers on how to choose and monitor stable value funds.

The 15-member panel will also examine current disclosure practices to determine if they provide sufficient information to participants. The panel may also consider if stable value funds should be qualified default investment alternatives in 401(k) plans. The council intends to report its findings to the DOL in October, 2009.