The Pension Protection Act of 2006 made a number of changes to the ERISA
rules that govern plan investments. One of the more significant changes
was to create a special safe harbor from fiduciary liability for default
investments in individual account plans (such as Section 401(k) plans).
Beginning in the 2007 plan year, a fiduciary may be relieved from
liability for investment losses that relate to investment of a
participant\’s account in a default investment option following the
participant\’s failure to affirmatively direct how his or her account
should be invested. Under current rules, such fiduciary protection is only
available where a participant has made an affirmative election to invest
in an investment option.