The Department of Labor has decided not to include stable-value funds as one of its recommended default options for 401(k) plans under the Pension Protection Act. Instead, the DOL will make it easier for sponsors to select balanced funds, lifecycle funds and a professionally managed, diversified portfolio as the default choices.

Investment Company Institute President and Chief Executive Officer Paul Schott Stevens applauded the decision, saying, “The Department of Labor has worked hard to implement Congress’s intention in the Pension Protection Act with respect to default investment options in 401(k) and other defined contribution retirement plans. The regulation issued today will help ensure that the defined contribution system works as effectively as possible for the millions of working Americans who depend upon it for a financially secure retirement.”

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