Scott, Murray Ask Government Watchdog to Review Funds Responsible for the Retirement Security of Millions
WASHINGTON – Yesterday, Chairman Robert C. “Bobby” Scott, House Education and Labor Committee, and Chair Patty Murray (D-WA), Chair of the Health, Education, Labor, and Pensions (HELP) Committee, sent a letter to the Government Accountability Office (GAO) requesting it conduct a review of target-date funds—funds billed as ensuring people’s retirement security by balancing risk and providing an age-appropriate asset allocation for plan participants over time. There are more than $1.5 trillion invested these funds, which are often the default investment option for employer-based retirement plans.
“As chairs of the House Committee on Education and Labor and the Senate Committee on Health, Education, Labor, and Pensions (HELP), we write to request the Government Accountability Office (GAO) conduct a review of target-date funds (TDFs). The employer-provided retirement system must effectively serve its participants and retirees, and we are concerned certain aspects of TDFs may be placing them at risk. TDFs are often billed as ‘set it and forget it’ investments, yet expenses and risk allocations vary considerably among funds. The millions of families who trust their financial futures to target-date funds, need to know these programs are working as advertised and providing the retirement security promised,” wrote the Chairs.
To read the full letter, click here.
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