Democrats Seeking Watchdog Investigation of Target-Date Funds

Two leading Democratic lawmakers are calling on a federal government watchdog to review the types of funds that hold millions of American workers’ default investments.

Sen. Patty Murray (D-Wash.), chair of the Health, Education, Labor and Pensions Committee, and Rep. Bobby Scott (D-Va.), who chairs the House Education and Labor Committee, in a letter to the Government Accountability Office Thursday requested a review of target-date funds, which are meant to optimize returns and diminish risk within a targeted timeframe—usually a projected date of retirement.

“TDFs are often billed as ‘set it and forget it’ investments, yet expenses and risk allocations ...