One might expect, says Perdue, that "the extension of the 404(c) protection means that by defaulting a participant into an eligible QDIA
, the fiduciary will not be responsible for the consequences that flow from that default.
We propose strengthening the current QDIA
rules in two ways, in effect creating an Enhanced QDIA
standard or EQDIA.
Two-thirds of those with stable money or money funds as a default say it's their QDIA
, even though stable money and money funds are only valid QDIAs
for the first 120 days after a participant enrolls.
Retirement income not likely to be solved through a QDIA
focuses on QDIA
fund selection, construction, monitoring and satisfaction.
DALBAR evaluates those aspects of ERISA Section 404(c)(5) that can reasonably be met by practices, procedures and obligations of investment managers, including the applicability of the investment to one or more types of QDIA
, qualification of the manger and the investment under QDIA
requirements, as well as the reasonableness of the investment with respect to fees, performance and use of generally acceptable investment theory.
The survey also revealed that plan sponsor perceptions of target date funds, as compared to other QDIA
options, are shifting.
To obtain your one year no cost membership to the Custom QDIA
Association and register for the CFDD '12 Advisor Conference, go to: http://www.
Department of Labor finalized the QDIA
regulations as recently as October 2007, the policy is already having a positive impact on newer participants.
Offering Mainspring Managed as a QDIA
is just one way we are simplifying retirement plans for our plan sponsor clients," said Dan Hall, regional sales vice president.
Of all plans at Vanguard that have designated a QDIA
, 80% had chosen target-date funds as the default.
Strategic Advantage 401k provides plan design, custody, record keeping, and three levels of active investment management: core fiduciary services to reduce Plan Sponsor liability; age-based, risk-managed QDIA
accounts; and custom, suitability-based managed accounts for electing participants.