Qualified Default Investment Alternative

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Qualified Default Investment Alternative

An investment vehicle a fund manager may use for retirement plan contributions in the absence of direction from the plan participant. A qualified default investment alternative must be diversified, may not directly consist of securities in the company for which the plan participant works, and may not penalize the participant for early withdrawal. Qualified default investment alternatives were defined in the Pension Protection Act of 2006 as part of a broader effort to ease automatic enrollment in retirement plans.
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Qualified default investment alternatives include both target date funds and target risk (aka "lifestyle") funds.
Part of the Lincoln Retirement Power research series, the survey explored plan sponsors' perspective on the value of automatic retirement plan features including automatic enrollment, automatic escalation and qualified default investment alternatives (QDIAs).
Provided the plan adheres to certain rules, companies can automatically enroll participants in qualified default investment alternatives.
Because of this, the law now allows plan fiduciaries to invest funds that are not being directed by plan participants into qualified default investment alternatives (QDIAs) that automatically make appropriate investment choices for employees based on age, lifestyles and risk.
com/research/wqfh23/cerulli_edge_ret) has announced the addition of the "Cerulli Edge - Retirement Edition Topic: Qualified Default Investment Alternatives (1Q 2012)" report to their offering.
Department of Labor permitted the use of target-date funds among the qualified default investment alternatives used when a participant fails to make an investment election.
Department of Labor's desire for plan sponsors to provide well-diversified Qualified Default Investment Alternatives for defined contribution plans.
While the introduction of Qualified Default Investment Alternatives (QDIA) has enabled Plan Sponsors to help participants accumulate retirement savings, a new study released today by Genworth Financial at their 2008 Retirement Symposium in Washington, DC, reveals that adding guaranteed income to a QDIA can help to avert the risk of ruin for participants and help them generate even higher income levels in retirement.
Independent certification that ERISA standards of fiduciary prudence have been applied to investment identification, screening and monitoring -- Independent certification that investment options under MassMutual's Smart Architecture(SM) Investment Program provide a suitable basis for plan participants to construct well-diversified investment portfolios for retirement -- The requirement under Section 404(c) of ERISA to offer a broad range of investment alternatives will be satisfied if the designated asset categories are selected -- Investment options made available include balanced and target date investments that meet the Department of Labor's proposed requirements for Qualified Default Investment Alternatives (QDIA).
2 On a positive note, however, the report showed that participants in plans with automatic enrollment and Qualified Default Investment Alternatives (QDIAs) are better off than those without.
Independent certification that ERISA standards of fiduciary prudence have been applied to investment identification, screening and monitoring * Independent certification that investment options under MassMutual's Smart Architecture(SM) Investment Program provide a suitable basis for plan participants to construct well-diversified investment portfolios for retirement * Investment options made available include balanced and target date investments that meet the Department of Labor's proposed requirements for Qualified Default Investment Alternatives (QDIA)
Investments and guaranteed income--which deliver differentiation through qualified default investment alternatives, including Prudential's target date funds, as well as an option that delivers guaranteed income for life.
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