DOL Issues Ruling on Target-Date and Lifecycle Mutual Funds

December 21, 2009
The Department of Labor confirmed in a recent advisory opinion that the assets of “target-date” or lifecycle mutual funds are not “plan assets” of investing employee benefit plans for purposes of ERISA, even if the funds consist of shares of affiliated mutual funds. This update briefly describes the ruling and its implications, including that the DOL does not view investment advisers to registered mutual funds and registered funds of funds as ERISA fiduciaries to plans that invest in such funds.