The plan committee evaluated the following types of long-term QDIAs: 1) Group-Based Investment Products; 2) Individually-Based Investment Services; and 3) Individually-Based Investment Products.

The plan committee evaluated the following types of long-term QDIAs: 1) Group-Based Investment Products; 2) Individually-Based Investment Services; and 3) Individually-Based Investment Products.

Widespread adoption of automatic enrollment has significantly increased the number of Americans who are participating in company-sponsored retirement plans.

This Advisor Brief is part of a “QDIA Policy Kit” designed to help you systematically educate your clients on critical issues that will differentiate you from your competition. While these investments can hold a majority of plan assets, many plans fail to have an objective process in place to guide the fiduciaries in fulfilling their duty to prudently select and monitor the plan’s QDIA.

This QDIA Policy is a sample designed to illustrate criteria that may be relevant to support fiduciary decisions relating to the selection, monitoring and/or replacement of an appropriate QDIA.

When employees are automatically enrolled into the plan, the plan’s fiduciaries must select an appropriate Qualified Default Investment Alternative (QDIA) for participants who fail to provide direction over the investment of their individual accounts.

Global bonds seem to have become universally recognized and accepted in the world of defined benefit plans, with an allocation to them typically sought to potentially improve performance and dampen volatility. Similarly, we think global bonds are worthy of discussion as an asset class for defined contribution plans in terms of both a standalone allocation option and a component of any target date or target risk fund.