Financial Engines
FINANCIAL ENGINES EXECUTIVES AVAILABLE TO DISCUSS FINAL DEPARTMENT OF LABOR (DOL) REGULATION ON QUALIFIED DEFAULT INVESTMENT ALTERNATIVES
Guidance Encourages Appropriate Default Investments and Automatic 401(k) Plans
PALO ALTO, Calif., October 24, 2007 – The Department of Labor (DOL) today finalized their much anticipated guidelines on appropriate investment defaults for 401(k)s. The guidance is important because it provides a safe-harbor for employers who select default investment options that the DOL has deemed more appropriate for achieving long-term retirement goals. The three approved permanent Qualified Default Investment Alternatives (QDIA) include managed accounts, lifecycle funds and balance funds.
These regulations further encourage the adoption of the Automatic 401(k) for both new and existing employees by providing a safe-harbor for employers who automatically enroll employees into a 401(k) plan and default them into a qualified default.
Executives from Financial Engines, an investment advisory firm and leading managed account provider, are available for interviews on the following topics:
How the DOL guidance is expected to affect employers, employees and the retirement industry
How employers should go about evaluating and selecting a QDIA
How managed accounts can cost effectively help employees invest more appropriately for retirement
The role of automatic 401(k) plans in retirement planning
Why stable value funds were not deemed a qualified default other than for a short preliminary period and how they can still play an important role in saving for retirement.
With the decline of traditional pension plans and the future of social security unsure, today’s employees are relying primarily on 401(k) accounts to fund their retirements. The new finalized DOL guidance represents a significant step forward in ensuring that 401(k) plans are able to meet the retirement needs of American workers.
To schedule an interview with a Financial Engines spokesperson, please contact Asma Emneina (650-565-7791).
About Financial Engines
Financial Engines is a new breed of investment advisor providing personalized investment advice and portfolio management to 401(k) participants. Founded by Nobel Prize-winning economist, William F. Sharpe, Financial Engines serves millions of employees at many of America's largest corporations. Patented advice technology and institutional-quality investment methodology allow Financial Engines to offer an array of advisory services to meet the needs of a wide range of investors. For more information, please visit www.financialengines.com.