QDIA

(redirected from Qualified Default Investment Alternative)
Also found in: Financial.
AcronymDefinition
QDIAQualified Default Investment Alternative
QDIAQualified Default Investment Arrangement (US DOL)
QDIAQuasi-diagonal Direct Interaction Approximation
QDIAQueensland Dairy Industry Authority (Australia)
References in periodicals archive ?
All are re-enrolled into the qualified default investment alternative (QDIA).
Note to plan sponsors: In order for the Plan's default investment to satisfy section 404(c)(5) of ERISA, the default investment fund must be a qualified default investment alternative ("QDIA") under DOL Reg.
Plan fiduciaries remain responsible for the prudent selection and monitoring of the qualified default investment alternative.
The qualified default investment alternative (QDIA) provisions of the PPA are changing the landscape of our industry, giving plan sponsors unprecedented fiduciary protection and providing more options for participants.
The move comes as a surprise, as just five years ago low fees were voted the least important consideration for plan sponsors when selecting a qualified default investment alternative (QDIA).
The DOL notes that for an investment to serve as a qualified default investment alternative (QDIA), any participant or beneficiary on whose behalf assets are invested must be able to transfer those "in whole or in part" to any other investment alternative available under the plan as frequently as participants and beneficiaries may elect to invest in the QDIA, and no less frequently than once within any three-month period.
Oringer: The DOL does not view fixed income/stable value vehicles as appropriate options for a qualified default investment alternative or QDIA, an employer's default allocation used when a plan participant opts not to make an investment election.
Under another paradigm, it refers to "restarting" the plan by defaulting all plan assets into a qualified default investment alternative.
The choice for qualified default investment alternative (QDIA) presents a good example of this phenomenon.
Certainly, the passing of the Pension Protection Act (PPA) in 2006 was a momentous landmark for the industry, as it led to automatic features and the use of target-date funds (TDFs) as the qualified default investment alternative (QDIA)-sidestepping participants' inertia and ensuring that their portfolios are properly diversified and rebalanced over time.
The report finds that plans that have a qualified default investment alternative (QDIA) have more participants that meet the diversification goal.
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