PLANSPONSOR Shares Comments From Brad Campbell on Stable Value Funds
PLANSPONSOR quoted benefits and executive compensation partner Brad Campbell on the role of stable value funds in retirement savings portfolios.
The publication explained how the final regulations on qualified default investment alternatives addressed the savings previously defaulted into stable value funds. Stable value funds were also approved as a capital preservation product for an employee’s first 120 days of participation.
PLANSPONSOR shared that during a press conference when the final regulations were published in 2007, Campbell, then-assistant secretary for the Employee Benefits Security Administration (EBSA), stated that stable value funds would likely still be a very big part of qualified default investment alternatives (QDIAs) as underlying investments.