Navigating the 401(k) labyrinth

In order to help defined-contribution plan participants achieve their retirement investment goals, the Pension Protection Act encourages employers to automatically enroll their employees in the company's DC plan, provide default investment options and make investment advice available to plan participants.

Employees benefit from more information, enhanced notification and disclosure requirements, increased diversification rights and access to professional investment advice. Employers benefit by helping their employees save for retirement while potentially narrowing corporate liability in certain areas where prescribed conditions are satisfied.