Sec. 318. Performance benchmarks for asset allocation funds
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/bill/117/hr/2617/unknown/section-318·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Not later than 2 years after the date of enactment of this Act, the Secretary of Labor shall promulgate regulations under section 404 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1104 ) providing that, in the case of a designated investment alternative that contains a mix of asset classes, the administrator of a plan 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 if needed to reflect changes in the asset class holdings of the designated investment alternative; the blend is furnished to participants and beneficiaries in a manner that is reasonably calculated to be understood by the average plan participant; and each securities market index that is used for an associated asset class would separately satisfy the requirements of such regulation for such asset class.
Not later than 3 years after the applicability date of regulations issued under this section, the Secretary of Labor shall deliver a report to the Committees on Finance and Health, Education, Labor, and Pensions of the Senate and the Committees on Ways and Means and Education and Labor of the House of Representatives regarding the utilization, and participants’ understanding, of the benchmarking requirements under this section.
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Sec. 318
Performance benchmarks for asset allocation funds
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