The Senate Special Committee on Aging and the Government Accountability Office have drafted reports about how securities lending affects plan sponsors and investors in 401 (k) plans, The Wall Street Journal reports. The two separate reports will lay out recommendations to help employers and participants better understand the risks of securities lending in employer retirement plans.
The committee will recommend that employers provide plan participants with clearer disclosures about the benefits and risks about securities lending in their plan options. It will also ask the Labor Department to form tools and guidance for employers on the benefits and risks of securities lending.
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