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Defined Contribution

Kentucky Public Employees deferred comp makes Vanguard target-date funds its default option

Kentucky Public Employees' Deferred Compensation Authority, Frankfort, approved making Vanguard Target Retirement Funds the default option for the authority's 457(b) and 401(k) plans, said William C. Biddle, executive director.

Previously, the plans did not have a qualified default investment option, Mr. Biddle said. Participants had to choose an investment option upon enrolling.

The plans have about $3 billion in assets combined and about $200 million total invested in the Vanguard target-date funds.

Outside of the target-date funds, each of the plans offers 19 other investment options. The target-date funds are among the most popular option for new enrollees, Mr. Biddle said.