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.

 
 

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