Sec. 223. Performance benchmarks for asset allocation funds
159 words·~1 min read·
/bill/113/s/1270/is/section-223A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Not later than six months after the date of enactment of this Act, the Secretary of Labor shall modify the regulations under section 404 of the Employee Retirement Income Security Act of 1974 to provide that, in the case of a designated investment alternative that contains a mix of asset classes, a plan administrator may, but is not required to, use a benchmark that is a blend of different broad-based securities market indices if— the blend is reasonably representative of the asset class holdings of the designated investment alternative; for purposes of determining the blend’s returns for 1-, 5-, and 10-calendar year periods (or for the life of the alternative, if shorter), the blend is modified at least once per year to reflect changes in the asset class holdings of the designated investment alternative; and each securities market index that is used for an associated asset class would separately satisfy the requirements of such regulations for such asset class.