In some defined contribution plans, a group or an individual makes all the investment decisions for the plan's assets.  In certain defined contribution plans, however, plan officials may decide to provide a number of investment options, and they may ask you to decide how to invest your account balance by choosing among those investment options.

The U.S. Department of Labor has established rules about plans that permit participants to direct their own investments.  Under these rules, if, and only if, you truly exercise independent control in making your investment choices, plan officials will be excused from the fiduciary responsibility for the consequences of your investment decisions.  A plan under which you in fact exercise independent control over the investment of your individual account is called a 404(c) plan (after section 404(c) of ERISA).  If you are a participant in a 404(c) plan, you are responsible for the consequences of your investment decision, and you cannot sue the plan officials for investment losses that result from your decisions.

You are entitled to receive a broad range of information about the investment choices available under a 404(c) plan.  Thus, a plan that intends to relieve plan officials of fiduciary duties over investments must inform you of that fact.  Also, a 404(c) plan must give you sufficient information about investment options under the plan for you to be able to make informed decisions.  The information that you are entitled to receive without asking includes the following:

• A description of each investment option, including the investment goals, risk and return characteristics.

• Information about designated investment managers.

• An explanation of when and how to make investment instructions and any restrictions on when you can change investments.

• A statement of the fees that may be charged to your account when you change investment options or buy and sell investments.

• Information about your shareholder voting rights and the manner in which confidentiality will be provided on how you vote your shares of stock.

• The name, address, and phone number of the plan fiduciary or other person designated to provide certain additional information on request.