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.
References in periodicals archive ?
Like other investment alternatives made available under a plan, a plan fiduciary would be required to carefully consider investment fees and expenses in choosing a qualified default investment alternative for purposes of the regulation.
363. Does the inclusion of indemnification and limitation of liability language in a service provider contract violate ERISA's fiduciary provisions?
Auto Enrollment -- Automatically enrolling new hires into a qualified default investment alternative within the DC plan, at a fixed contribution rate.
DC Investment Association Proposes Standards for Auto Features
According to Cerulli, managed accounts have some hurdles to overcome to effectively replace target-date funds (TDFs) as the go-to choice for Employee Retirement Income Security Act (ERISA) retirement plans' qualified default investment alternative (QDIA) designation.
Running Parallel
But, Castellani adds, MassMutual "strongly believes" that DOL's exclusion of guaranteed general investment account and other stable value guaranteed products from the list of qualified default investment alternative, or QDIAs, "is an unacceptable shortcoming in the proposed regulation that must be addressed.
Battle raging over 401(k) default investments
The Pension Protection Act allowed sponsors to designate CITs as the qualified default investment alternative in their retirement plans.
Retirement Plans Take Second Look at a Cheaper Alternative to Mutual Funds
The qualified default investment alternative (QDIA) regulation provides for a balanced fund, a target-date fund (TDF) or a professionally managed account.
2015 PLANSPONSOR Managed Account Buyer's Guide
Among the changes are an expanded nonproprietary investment universe, a range of qualified default investment alternative (QDIA) options and a changed pricing structure.
Top Portfolio Products: New Small-Cap and Strategic Bond Funds
Summary paragraph: Of the three qualified default investment alternative (QDIA) options, only managed accounts depend upon participant engagement.
Next Steps
New products and changes introduced over the last week include annuity modeling capabilities from RetireUp, a managed account qualified default investment alternative from the Guardian Insurance & Annuity Company and the addition of Orion Advisor Services to the Schwab OpenView Gateway.
Top Portfolio Products: New Options From RetireUp and Guardian Insurance
The appealing idea of a "set it and forget it" strategy was made only more attractive by the endorsement of these funds as a qualified default investment alternative (QDIA) by the Department of Labor (DOL) after the passage of the Pension Protection Act of 2006 (PPA).
The Debate Rages On
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