ERISA [section] 404(c): allowing 401(k) participants to direct the investment of their own accounts.(Employee Retirement Income Security Act of 1974)

The Department of Labor's regulations under [section] 404(c) of ERISA are itended to establish the rules that apply to 401(k) plans (as well as other defined contribution plans) that permit participant directed investment of their account balances ([section] 404(c) plans). If the rules set forth in the regulations are followed, plan fiduciaries will generally be relieved of liability for losses resulting from participants' investment decisions. The regulations generally require certain information to be disclosed to participants as a matter of course and require that additional information be disclosed to participants upon request. The regulations also require that participants be permitted to shift their investments among a broad range of at least three different investment alternatives at least once in each three month period or more often if appropriate due to the volatility of an investment. The regulations contain special rules applicable to investments in employer securities and establish a number of acceptable limitations that may be placed on a participant's ability to direct the investment of his account.

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