Hearing on Target Date Funds and Similar Investment Options, 24052-24053 [E9-12024]

Download as PDF 24052 Federal Register / Vol. 74, No. 98 / Friday, May 22, 2009 / Notices the State of Tennessee (FEMA–1839– DR), dated 05/15/2009. Incident: Severe storms, tornadoes, and flooding. Incident Period: 04/10/2009. Effective Date: 05/15/2009. Physical Loan Application Deadline Date: 07/14/2009. Economic Injury (EIDL) Loan Application Deadline Date: 02/15/2010. Submit completed loan applications to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. ADDRESSES: erowe on PROD1PC63 with NOTICES FOR FURTHER INFORMATION CONTACT: A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street, SW., Suite 6050, Washington, DC 20416. DEPARTMENT OF LABOR Employee Benefits Security Administration SECURITIES AND EXCHANGE COMMISSION [Release No. IC–28725; File No. 4–582] Hearing on Target Date Funds and Similar Investment Options AGENCIES: Employee Benefits Security Administration, U.S. Department of Labor (‘‘Department’’) and Securities and Exchange Commission (‘‘Commission’’) (each, an ‘‘Agency,’’ collectively, the ‘‘Agencies’’). ACTION: Notice of hearing. SUMMARY: Notice is hereby given that the Department of Labor and the Securities and Exchange Commission will hold a joint one-day hearing on SUPPLEMENTARY INFORMATION: Notice is issues relating to investments in target date funds and similar investment hereby given that as a result of the President’s major disaster declaration on options by 401(k) plan participants and other investors. 05/15/2009, Private Non-Profit organizations that provide essential DATES: The one-day hearing will be held services of governmental nature may file on June 18, 2009, beginning at 9 a.m., disaster loan applications at the address EST. listed above or other locally announced ADDRESSES: The hearing will be held at locations. the U.S. Department of Labor, 200 Constitution Avenue, NW., Washington, The following areas have been DC 20210. determined to be adversely affected by FOR FURTHER INFORMATION CONTACT: Fred the disaster: J. Wong, Office of Regulations and Primary Counties: Interpretations, Employee Benefits Benton, McMinn, Rutherford, Security Administration, U.S. Sequatchie. Department of Labor, at (202) 693–8500, or Tara R. Buckley, Office of Chief The Interest Rates are: Counsel, Division of Investment Management, U.S. Securities and Percent Exchange Commission, at (202) 551– 6825. These are not toll-free numbers. Other (Including Non-Profit Organizations) With Credit SUPPLEMENTARY INFORMATION: ‘‘Target Available Elsewhere .......... 4.500. date’’ or ‘‘lifecycle’’ funds and other Businesses and Non-Profit similar investment options (‘‘TDFs’’) are Organizations Without investment products that allocate their Credit Available Elsewhere 4.000. investments among various asset classes and automatically shift that allocation to The number assigned to this disaster more conservative investments as a for physical damage is 11754B and for ‘‘target’’ date approaches. This shift in economic injury is 11755B. asset allocation, often referred to as a fund’s ‘‘glide path,’’ may differ (Catalog of Federal Domestic Assistance significantly among funds with the same Numbers 59002 and 59008) target date. Recent studies suggest that Roger B. Garland, TDFs are becoming more common as Acting Associate Administrator for Disaster investment options in participantAssistance. directed retirement plans, such as [FR Doc. E9–11978 Filed 5–21–09; 8:45 am] 401(k) plans.1 The growing popularity of TDFs has focused attention on issues BILLING CODE 8025–01–P relating to the design, operation and selection of TDFs as investment options. The designation of investment options 1 Employee Benefits Research Institute Issue Brief #327, March 2009. VerDate Nov<24>2008 14:18 May 21, 2009 Jkt 217001 PO 00000 Frm 00069 Fmt 4703 Sfmt 4703 to be made available under a privatesector retirement plan is governed by the fiduciary responsibility provisions of the Employee Retirement Income Security Act of 1974 (‘‘ERISA’’). Persons with this responsibility must prudently select and monitor those investment options. The Department’s 2008 ERISA Advisory Council studied several aspects of TDFs as 401(k) plan investment options, including the challenges and risks they may pose to plan fiduciaries and to participants who invest in TDFs, the different types of TDFs, and appropriate criteria for adopting and monitoring them. In its 2008 report to the Secretary of Labor, the Advisory Council recommended that the Department provide additional guidance to plan fiduciaries on the selection and monitoring of TDFs. The Advisory Council also called for the development of participant education materials and illustrations to enhance awareness of the value and the risks associated with these investments.2 The U.S. Senate Special Committee on Aging recently began an investigation of certain TDFs marketed to 401(k) plans. In preliminary findings shared with the Agencies, the Committee found a wide range of objectives, portfolio compositions, and risks among same-year TDFs. The Committee expressed concern that, given these variations, some investors may be investing in TDFs without being aware of the financial risk. The Committee therefore urged the Agencies to commence a review of TDFs.3 In view of the importance of these issues for the retirement savings of investors, the Department and the Commission have decided to hold a public hearing. The primary purpose of this hearing is to determine if additional guidance by either Agency would be helpful. The Agencies are specifically interested in obtaining information on: • How TDF managers determine asset allocations and changes to asset allocations (including glide paths) over the course of a TDF’s operation; • How they select and monitor underlying investments; • How the foregoing, and related risks, are disclosed to investors; and • The approaches or factors for comparing and evaluating TDFs. The hearing will be held on June 18, 2009, beginning at 9 a.m. and ending at 2 See 2008 ERISA Advisory Council Working Group Report on Hard to Value Assets and Target Date Funds, found at: http://www.dol.gov/ebsa/ publications/2008ACreport1.html. 3 The Committee held a related hearing on February 25, 2009. See: http://aging.senate.gov/ hearing_detail.cfm?id=309027&. E:\FR\FM\22MYN1.SGM 22MYN1 erowe on PROD1PC63 with NOTICES Federal Register / Vol. 74, No. 98 / Friday, May 22, 2009 / Notices 5 p.m., EST, in the plaza auditorium of the U.S. Department of Labor, Francis Perkins Building, at 200 Constitution Avenue, NW., Washington, DC 20210. Persons interested in presenting testimony and answering questions at this public hearing must submit, by 3:30 p.m., EST, June 5, 2009, the following information: (1) A written request to be heard; and (2) An outline of the topics to be discussed, indicating the time allocated to each topic. It should be noted that, while reasonable efforts will be made to accommodate all requests to testify, it may be necessary to limit the number of those testifying in order to adhere to the hearing’s one-day format. Any persons not afforded an opportunity to testify will nonetheless have an opportunity to submit a written statement for the record. The hearing will be open to the general public. Because the Agencies will jointly review all responses submitted, interested parties may send requests and outlines to either Agency and need not submit responses to both Agencies. Respondents are encouraged to use the title ‘‘Target Date Fund Joint Hearing’’ to facilitate the organization and distribution of responses between the Agencies. Interested parties are invited to submit responses to: Employee Benefits Security Administration, U.S. Department of Labor: To facilitate the receipt and processing of responses, the Department encourages interested persons to submit their requests and outlines electronically by e-mail to e-ORI@dol.gov. Persons submitting requests and outlines electronically should not submit paper copies. Persons submitting requests and outlines on paper should send or deliver their requests and outlines (preferably at least three copies) to the Office of Regulations and Interpretations, Employee Benefits Security Administration, Attn: Target Date Fund Joint Hearing, Room N–5655, U.S. Department of Labor, 200 Constitution Avenue, NW., Washington, DC 20210. All requests and outlines submitted will be available to the public, without charge, online at http:// www.dol.gov/ebsa and at the Public Disclosure Room, N–1513, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, NW., Washington, DC 20210. Securities and Exchange Commission: Responses may be submitted by any of the following methods: Electronic Responses • Use the Commission’s Internet comment form (http://www.sec.gov/ news/other.shtml); or VerDate Nov<24>2008 14:18 May 21, 2009 Jkt 217001 • Send an e-mail to rulecomments@sec.gov. Please include File Number 4–582 Target Date Joint Hearing on the subject line. Paper Responses • Send paper requests and outlines in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number 4–582 Target Date Fund Joint Hearing. This file number should be included on the subject line if e-mail is used. To help us process and review your requests and outlines more efficiently, please use only one method. The Commission will post all requests and outlines on the Commission’s Internet Web site (http://www.sec.gov). Requests and outlines are also available for public inspection and copying in the Commission’s Public Reference Room, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. All requests and outlines received will be posted without change; we do not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. The Agencies will prepare an agenda indicating the order of presentation of oral comments and testimony. In the absence of special circumstances, each presenter will be allotted ten (10) minutes in which to complete his or her presentation. Information about the agenda will be posted on http://www.dol.gov/ebsa and http://www.sec.gov on or after June 10, 2009, or may be obtained by contacting Fred Wong, Office of Regulations and Interpretations, Employee Benefits Security Administration, U.S. Department of Labor, telephone (202) 693–8500, or Tara R. Buckley, Office of Chief Counsel, Division of Investment Management, U.S. Securities and Exchange Commission, at (202) 551– 6825. Those individuals who make oral comments and testimonies at the hearing should be prepared to answer questions regarding their information and/or comments. The hearing will be transcribed. The hearing also will be available via webcast on the Department’s Web site at http:// www.dol.gov/ebsa and on the Commission’s Web site at http:// www.sec.gov. Any individuals with disabilities who may need special accommodations should notify Fred Wong on or before June 10, 2009. PO 00000 Frm 00070 Fmt 4703 Sfmt 4703 24053 Notice of Public Hearing Notice is hereby given that a one-day public hearing will be held on June 18, 2009, concerning issues related to investments in TDFs. The hearing will be held beginning at 9 a.m. in the plaza auditorium of the U.S. Department of Labor, Francis Perkins Building, 200 Constitution Avenue, NW., Washington, DC 20210. Dated: May 19, 2009. By the U.S. Department of Labor. Alan D. Lebowitz, Deputy Assistant Secretary for Program Operations, Employee Benefits Security Administration, U.S. Department of Labor. Dated: May 19, 2009. By the Securities and Exchange Commission. Elizabeth M. Murphy, Secretary. [FR Doc. E9–12024 Filed 5–21–09; 8:45 am] BILLING CODE 4510–29–P; 8010–01–P SECURITIES AND EXCHANGE COMMISSION In the Matter of Today’s Man, Inc., Tokheim Corp., Total Film Group, Inc., Toth Aluminum Corp., Tower Air, Inc., TPC Liquidation, Inc., the Translation Group, Ltd., Track ‘n Trail, Inc., TransAxis, Inc., Transmedia Europe, Inc., Treasury International, Inc., Trend-Lines, Inc., and Tri Lite, Inc., Respondents; Order of Suspension of Trading May 20, 2009. It appears to the Securities and Exchange Commission that there is a lack of current and accurate information concerning the securities of Today’s Man, Inc. because it has not filed any periodic reports since the period ended November 2, 2002. It appears to the Securities and Exchange Commission that there is a lack of current and accurate information concerning the securities of Tokheim Corp. because it has not filed any periodic reports since the period ended August 31, 2002. It appears to the Securities and Exchange Commission that there is a lack of current and accurate information concerning the securities of Total Film Group, Inc. because it has not filed any periodic reports since the period ended March 31, 2001. It appears to the Securities and Exchange Commission that there is a lack of current and accurate information concerning the securities of Toth Aluminum Corp. because it has not filed any periodic reports since the period ended February 29, 2004. E:\FR\FM\22MYN1.SGM 22MYN1

Agencies

[Federal Register Volume 74, Number 98 (Friday, May 22, 2009)]
[Notices]
[Pages 24052-24053]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-12024]


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DEPARTMENT OF LABOR

Employee Benefits Security Administration

SECURITIES AND EXCHANGE COMMISSION

[Release No. IC-28725; File No. 4-582]


Hearing on Target Date Funds and Similar Investment Options

AGENCIES: Employee Benefits Security Administration, U.S. Department of 
Labor (``Department'') and Securities and Exchange Commission 
(``Commission'') (each, an ``Agency,'' collectively, the ``Agencies'').

ACTION: Notice of hearing.

-----------------------------------------------------------------------

SUMMARY: Notice is hereby given that the Department of Labor and the 
Securities and Exchange Commission will hold a joint one-day hearing on 
issues relating to investments in target date funds and similar 
investment options by 401(k) plan participants and other investors.

DATES: The one-day hearing will be held on June 18, 2009, beginning at 
9 a.m., EST.

ADDRESSES: The hearing will be held at the U.S. Department of Labor, 
200 Constitution Avenue, NW., Washington, DC 20210.

FOR FURTHER INFORMATION CONTACT: Fred J. Wong, Office of Regulations 
and Interpretations, Employee Benefits Security Administration, U.S. 
Department of Labor, at (202) 693-8500, or Tara R. Buckley, Office of 
Chief Counsel, Division of Investment Management, U.S. Securities and 
Exchange Commission, at (202) 551-6825. These are not toll-free 
numbers.

SUPPLEMENTARY INFORMATION: ``Target date'' or ``lifecycle'' funds and 
other similar investment options (``TDFs'') are investment products 
that allocate their investments among various asset classes and 
automatically shift that allocation to more conservative investments as 
a ``target'' date approaches. This shift in asset allocation, often 
referred to as a fund's ``glide path,'' may differ significantly among 
funds with the same target date. Recent studies suggest that TDFs are 
becoming more common as investment options in participant-directed 
retirement plans, such as 401(k) plans.\1\ The growing popularity of 
TDFs has focused attention on issues relating to the design, operation 
and selection of TDFs as investment options. The designation of 
investment options to be made available under a private-sector 
retirement plan is governed by the fiduciary responsibility provisions 
of the Employee Retirement Income Security Act of 1974 (``ERISA''). 
Persons with this responsibility must prudently select and monitor 
those investment options.
---------------------------------------------------------------------------

    \1\ Employee Benefits Research Institute Issue Brief 
327, March 2009.
---------------------------------------------------------------------------

    The Department's 2008 ERISA Advisory Council studied several 
aspects of TDFs as 401(k) plan investment options, including the 
challenges and risks they may pose to plan fiduciaries and to 
participants who invest in TDFs, the different types of TDFs, and 
appropriate criteria for adopting and monitoring them. In its 2008 
report to the Secretary of Labor, the Advisory Council recommended that 
the Department provide additional guidance to plan fiduciaries on the 
selection and monitoring of TDFs. The Advisory Council also called for 
the development of participant education materials and illustrations to 
enhance awareness of the value and the risks associated with these 
investments.\2\
---------------------------------------------------------------------------

    \2\ See 2008 ERISA Advisory Council Working Group Report on Hard 
to Value Assets and Target Date Funds, found at: http://www.dol.gov/ebsa/publications/2008ACreport1.html.
---------------------------------------------------------------------------

    The U.S. Senate Special Committee on Aging recently began an 
investigation of certain TDFs marketed to 401(k) plans. In preliminary 
findings shared with the Agencies, the Committee found a wide range of 
objectives, portfolio compositions, and risks among same-year TDFs. The 
Committee expressed concern that, given these variations, some 
investors may be investing in TDFs without being aware of the financial 
risk. The Committee therefore urged the Agencies to commence a review 
of TDFs.\3\
---------------------------------------------------------------------------

    \3\ The Committee held a related hearing on February 25, 2009. 
See: http://aging.senate.gov/hearing_detail.cfm?id=309027&.
---------------------------------------------------------------------------

    In view of the importance of these issues for the retirement 
savings of investors, the Department and the Commission have decided to 
hold a public hearing. The primary purpose of this hearing is to 
determine if additional guidance by either Agency would be helpful. The 
Agencies are specifically interested in obtaining information on:
     How TDF managers determine asset allocations and changes 
to asset allocations (including glide paths) over the course of a TDF's 
operation;
     How they select and monitor underlying investments;
     How the foregoing, and related risks, are disclosed to 
investors; and
     The approaches or factors for comparing and evaluating 
TDFs.
    The hearing will be held on June 18, 2009, beginning at 9 a.m. and 
ending at

[[Page 24053]]

5 p.m., EST, in the plaza auditorium of the U.S. Department of Labor, 
Francis Perkins Building, at 200 Constitution Avenue, NW., Washington, 
DC 20210.
    Persons interested in presenting testimony and answering questions 
at this public hearing must submit, by 3:30 p.m., EST, June 5, 2009, 
the following information: (1) A written request to be heard; and (2) 
An outline of the topics to be discussed, indicating the time allocated 
to each topic. It should be noted that, while reasonable efforts will 
be made to accommodate all requests to testify, it may be necessary to 
limit the number of those testifying in order to adhere to the 
hearing's one-day format. Any persons not afforded an opportunity to 
testify will nonetheless have an opportunity to submit a written 
statement for the record. The hearing will be open to the general 
public.
    Because the Agencies will jointly review all responses submitted, 
interested parties may send requests and outlines to either Agency and 
need not submit responses to both Agencies. Respondents are encouraged 
to use the title ``Target Date Fund Joint Hearing'' to facilitate the 
organization and distribution of responses between the Agencies. 
Interested parties are invited to submit responses to:
    Employee Benefits Security Administration, U.S. Department of 
Labor: To facilitate the receipt and processing of responses, the 
Department encourages interested persons to submit their requests and 
outlines electronically by e-mail to e-ORI@dol.gov. Persons submitting 
requests and outlines electronically should not submit paper copies. 
Persons submitting requests and outlines on paper should send or 
deliver their requests and outlines (preferably at least three copies) 
to the Office of Regulations and Interpretations, Employee Benefits 
Security Administration, Attn: Target Date Fund Joint Hearing, Room N-
5655, U.S. Department of Labor, 200 Constitution Avenue, NW., 
Washington, DC 20210. All requests and outlines submitted will be 
available to the public, without charge, online at http://www.dol.gov/ebsa and at the Public Disclosure Room, N-1513, Employee Benefits 
Security Administration, U.S. Department of Labor, 200 Constitution 
Avenue, NW., Washington, DC 20210.
    Securities and Exchange Commission: Responses may be submitted by 
any of the following methods:

Electronic Responses

     Use the Commission's Internet comment form (http://www.sec.gov/news/other.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number 4-582 Target Date Joint Hearing on the subject line.

Paper Responses

     Send paper requests and outlines in triplicate to 
Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 
F Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number 4-582 Target Date Fund 
Joint Hearing. This file number should be included on the subject line 
if e-mail is used. To help us process and review your requests and 
outlines more efficiently, please use only one method. The Commission 
will post all requests and outlines on the Commission's Internet Web 
site (http://www.sec.gov). Requests and outlines are also available for 
public inspection and copying in the Commission's Public Reference 
Room, 100 F Street, NE., Washington, DC 20549, on official business 
days between the hours of 10 a.m. and 3 p.m. All requests and outlines 
received will be posted without change; we do not edit personal 
identifying information from submissions. You should submit only 
information that you wish to make available publicly.
    The Agencies will prepare an agenda indicating the order of 
presentation of oral comments and testimony. In the absence of special 
circumstances, each presenter will be allotted ten (10) minutes in 
which to complete his or her presentation.
    Information about the agenda will be posted on http://www.dol.gov/ebsa and http://www.sec.gov on or after June 10, 2009, or may be 
obtained by contacting Fred Wong, Office of Regulations and 
Interpretations, Employee Benefits Security Administration, U.S. 
Department of Labor, telephone (202) 693-8500, or Tara R. Buckley, 
Office of Chief Counsel, Division of Investment Management, U.S. 
Securities and Exchange Commission, at (202) 551-6825.
    Those individuals who make oral comments and testimonies at the 
hearing should be prepared to answer questions regarding their 
information and/or comments. The hearing will be transcribed. The 
hearing also will be available via webcast on the Department's Web site 
at http://www.dol.gov/ebsa and on the Commission's Web site at http://www.sec.gov.
    Any individuals with disabilities who may need special 
accommodations should notify Fred Wong on or before June 10, 2009.

Notice of Public Hearing

    Notice is hereby given that a one-day public hearing will be held 
on June 18, 2009, concerning issues related to investments in TDFs. The 
hearing will be held beginning at 9 a.m. in the plaza auditorium of the 
U.S. Department of Labor, Francis Perkins Building, 200 Constitution 
Avenue, NW., Washington, DC 20210.

     Dated: May 19, 2009.

    By the U.S. Department of Labor.
Alan D. Lebowitz,
Deputy Assistant Secretary for Program Operations, Employee Benefits 
Security Administration, U.S. Department of Labor.
    Dated: May 19, 2009.

    By the Securities and Exchange Commission.
Elizabeth M. Murphy,
Secretary.
 [FR Doc. E9-12024 Filed 5-21-09; 8:45 am]
BILLING CODE 4510-29-P; 8010-01-P