Two leading consumer groups are lending their support to a Department of Labor proposal that would exclude stable-value funds, money market funds, guaranteed investment contracts and other types of capital preservation funds as defaults in 401(k) plans with automatic enrollment.

In doing so, the Consumer Federation of America and Fund Democracy are siding with the mutual fund industry and the Investment Company Institute in their opposition to the insurance industry’s push to permit stable-value and similar capital-preservation funds to be among the 401(k) automatic enrollment defaults.

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