Since 2007, the U.S. Department of Labor has provided plan sponsors with safe harbor guidelines when selecting a qualified default investment alternative, or QDIA. To qualify, plan sponsors must follow a prudent selection process that includes the consideration of specific plan demographics and data. This paper presents a framework for using participant data to help determine which type of QDIA may be most appropriate for a plan.
In this paper, you’ll learn:
What kind of participant data is available and its influence on asset allocation recommendations
Our quantitative method for considering plan demographics
Our framework for quantifying the cost and possible benefits of a QDIA option