A Nationwide news release said the combination of the two should help plans qualify for the Employee Retirement Income Security Act (ERISA) 404(c) safe harbor protection and for the new Pension Protection Act safe harbor for qualified default investment alternatives (QDIAs).
The announcement asserts that the target-date offerings will help participants save well for retirement while the window will allow more sophisticated participants to build their own portfolios through an added layer of flexibility.
“We wanted to find a solution that meets the
collective retirement savings needs of America’s
workers, while helping plan sponsors reduce their
fiduciary liabilities,” says Bill Jackson, president
of Nationwide Retirement Plans, in the news release.
For more information, plan sponsors can call toll free 1-888-262-401k.