The U.S. Department of Labor's Employee Benefits SecurityAdministration is proposing a rule designed to help America'sworkers better comprehend targetdate retirement funds and similar investments, which areavailable in 401(k)-type plans.

Based on the proposed rule, the "qualified default investmentalternative regulation" and the "participant-level disclosureregulation" would be affected to enhance and provide morespecificity regarding disclose information to participants andbeneficiaries relating to investments in target date funds.

"Based on our collaborative examination of this issue with theSecurities andExchange Commission, it is clear that all participants inparticipant-directed individual account plans can benefit frombetter information about how target date investments are designedto meet their retirement savings needs," says Phyllis C. Borzi,assistant secretary of labor for EBSA.

New disclosures regarding the design and operation of targetdate or similar investments are required in the proposed rule,including an explanation of the investment's asset allocation, agraphic showing how that allocation will change over time and thesignificance of the investment's "target" date. Additionally, evenwhen close to retirement, the proposed amendments call for astatement of the money-loss risk for a participant investing in atarget date fund.