Stop Guessing: Using Participant Data to Select the Optimal QDIA
Stop Guessing: Using Participant Data to Select the Optimal QDIA
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.
![StopGuessing_WPimage_300x370.png](https://images.contentstack.io/v3/assets/blt4eb669caa7dc65b2/blt4002b11e94c08037/62290a9b131acb16994b8a32/StopGuessing_WPimage_300x370.png?auto=webp&disable=upscale&width=280)
What's Inside
What's Inside
- 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