June 15, 1990
TO: PENSION COMMITTEE NO. 13-90
RE: INSTITUTE SUPPORTS RELEASE OF DOL FINAL REGULATIONS
UNDER ERISA SECTION 404(c)
__________________________________________________________
The Department of Labor recently indicated that it
finalized its regulation regarding the investment of participant
directed individual account plans under ERISA section 404(c).
The regulation was proposed in September 1987 and the Institute
commented favorably on the major aspects of the proposal the
following December. (See Institute Memorandums to Pension
Members No. 44-87 dated September 8, 1987 and No. 62-87 dated
December 9, 1987.) The final regulation should be released
following review and approval by the Office of Management and
Budget ("OMB").
The Institute is aware of efforts to prevent OMB's release
of the final regulation and to cause the Labor Department to
release the regulation again in proposed form to allow for a
second comment period. In response to this pressure, the
Institute sent the attached letter to OMB to express the
industry's support for the immediate release of the final
regulation under ERISA section 404(c).
In order to prevent further delay in the release of the
final regulation, your organization or its ERISA 404(c) plan
clients also may want to express their support to the Department
of Labor in this matter and encourage the OMB to release the
final regulation as soon as possible.
We will keep you informed of further developments.
W. Richard Mason
Assistant General Counsel
Attachment