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Critics pan life cycle proposal; Say plan sponsors shouldn't have to hire investment...

Byline: Kathie O'Donnell

BOSTON - Critics of a proposal that would require 401(k) plan sponsors to hire an investment manager if they wanted to enroll workers automatically in their own life cycle portfolios without liability say that it will drive up plan costs and benefit large mutual fund firms.

The Pension Protection Act of 2006 amends the Employee Retirement Income Security Act of 1974, directing the secretary of Labor to issue regulation identifying qualified default investments. Plan fiduciaries enrolling workers who don't give investment preferences w

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