The Labor Department announced on Friday a second extension for public comment on final regulations that would permit 401(k) and other retirement plan fiduciaries to provide more advice to plan participants under the Pension Protection Act of 2006. The new deadline is Nov. 18, 2009.
Employers have long awaited better guidance on what forms of investment advice the government wants to permit, or encourage. The comment period was previously extended to allow the Obama administration sufficient time to examine the legal and policy issues present in the regulation, according to a White House memo.
On Jan. 21, 2009, the Department released a final rule administering the provision of investment advice under the Employee Retirement Income Security Acts prohibited transaction provisions. Subsequently, DOL officials drew out the applicability and effective dates of the final regulation from March 23 to May 22. This extension will provide the Obama administration the opportunity to better review public comment and fully vet the regulations.
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