| Following passage of the Pension Protection Act
(PPA) in 2006, the Department of Labor (DOL) was charged with issuing a
regulation to help employers select defaults that would “best serve the
retirement needs of workers who do not direct their own investments.” The
qualified default investment alternative (QDIA) regulation provides for a
balanced fund, a target-date fund (TDF) or a professionally managed account. Since
the regulation was released, and automatic enrollment gained popularity among
defined contribution (DC) plan sponsors, target-date funds have been the
runaway favorite, while managed accounts remain largely underutilized.Read more > |
