Subject: BenefitsLink Newsletter 12/12/95
NEW ON BENEFITSLINK:
--- A Department of Labor "Exposure Draft" describes how employers can
avoid becoming providers of "investment advice" within the meaning of
ERISA's definition of "fiduciary," in connection with educational programs
provided by employers who sponsor participant-directed pension and
profit-sharing plans. View the full-text version at:
http://www.magicnet.net/benefits/articles/drftbuln.txt
(It's a bit quicker to see the full-text version on BenefitsLink than to
fetch the WWW version quoted by the DOL in the press release below.)
The following is a reprint of the DOL's press release on Monday,
December 8, describing the document.
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LABOR DEPARTMENT ANNOUNCES EXPOSURE DRAFT ON PENSION
INVESTMENT EDUCATION FOR INDIVIDUALS
Fri., Dec. 8, 1995
For more information call: (202) 219-8921.
The U. S. Department of Labor today released draft guidance on
investment education for workers covered by retirement savings plans,
including 401(k)s.
The department released the draft, "Interpretive Bulletin Relating
to Participant Investment Education," to encourage employers and others
to give pension plan participants valuable investment education.
The objective in releasing a draft of the bulletin is to assure it
will be helpful. The draft bulletin addresses the circumstances under
which investment-related information will not constitute "investment
advice" under the Employee Retirement Income Security Act (ERISA).
The draft bulletin was developed following extensive review of
educational materials currently being provided by employers to plan
participants. It identifies a range of information and materials that
can be given to participants without constituting "investment advice"
under ERISA.
The department expects to complete its work on the draft
interpretive bulletin within the next 30 days.
Copies of the exposure draft are available from the PWBA Disclosure
Room, Room N-5638, 200 Constitution Ave., N.W., Washington, D. C.
20210, telephone (202) 219-8771. The draft is also available on the
Internet at http://www.dol.gov/dol/pwba, see "What's New in PWBA."
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Dave Baker