404(c) Protection Lost Where Funds are Mapped (Posted July 15, 2003) Technical Tip 31: The following question and answer are from the DOL Q&A Session at the 2000 ASPPA Annual Conference: Does 404(c) apply to participants who are mapped into like funds during administrative changes, i.e., large cap to large cap? How about one S&P index to another S&P index? DOL Response: In order for the protections afforded by Section 404(c) to be applicable, the participant must have exercised independent control in fact with respect to the investment of assets in his or her account. The question presented raises an issue as to whether the participant is making the choice of investment as is required by the Section 404(c) regulations. If the investment choices for mapping purposes are disclosed in advance and a participant affirmatively makes an election with respect to the mapping funds, then presumably Section 404(c) will apply if all other requirements are met. Caveat: The answer was drafted by the program moderators, including Fred Reish, based on their understandings of discussions with four senior officials of the Employee Benefits Security Administration (EBSA) of the U.S. Department of Labor. As a result, it does not represent a formal or binding position statement by the EBSA. View all Tips © 2010 Reish Luftman Reicher & Cohen, a Professional Corporation Important notice: Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner's situation. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of your situation.