Target Date, Lifestyle Funds & Other Qualified Default Investment Alternative (QDIA) Analysis:

Sponsors seeking certain safe harbors for Qualified Default Investment Alternatives (QDIAs) afforded by the Pension Protection Act of 2006 may choose to include target date or risk-based asset allocation funds in their plan menu. In addition, QDIAs may also take the form of balanced funds, managed asset allocation models, or managed accounts. Each of these types of default options may be prudent for the appropriate plan demographic. All are easy to understand, effective one-stop vehicles for instant diversification. Plan sponsors are required to exercise prudence in the selection of both the type of QDIA vehicle as well as the investment selection(s) to be utilized. North Pier guides our clients through the selection of the appropriate QDIA(s) in light of their individual circumstances, such as culture, demographics and utilization behavior. Whether providing consulting advice, discretionary management or administering full-blown QDIA RFPs, North Pier helps fiduciaries ensure that their plans’ default investments are not only high quality—they are also tailored to their participants’ needs.