Stop Guessing: Using Plan Participant Data to Help Select a QDIA

Wed, Oct 25, 2017 2:00 PM EDT{LOCAL_TZ}

Starting in 2008, the Department of Labor provided plan sponsors with some level of cover when selecting a QDIA, or qualified default investment alternative, from three anointed types of qualified investment options: 1) target-risk or balanced funds, 2) target-date funds, or 3) retirement managed accounts. To receive this cover, plan sponsors must follow a prudent QDIA selection process. When selecting a target-risk fund there is an obligation to consider plan demographics, that may carry over to selecting other QDIAs. Unfortunately, there has been a lack of clear guidance on practical methods for incorporating plan demographics into the selection of the a QDIA.

Join Morningstar Investment Management LLC’s Chief Investment Officer, Thomas Idzorek, CFA, as he addresses the following:

  • What data plan fiduciaries are required to consider when selecting a QDIA
  • How recent technological advances make it possible for plan fiduciaries to consider plan demographics when selecting a QDIA
  • How that same data can be used to help choose an appropriate target-date fund glidepath
  • How the recent development of “dynamic default” solutions may factor into the QDIA decision


Thomas Idzorek, CFA
Chief Investment Officer, Retirement
Morningstar Investment Management LLC

Daniel Bruns

Head of Large DC Plan Strategy and Solutions
Morningstar Investment Management LLC

Sponsored by:

Morningstar Investment Management LLC is a registered investment adviser and subsidiary of Morningstar, Inc. The Morningstar name and logo are registered marks of Morningstar, Inc. Opinions expressed are of current date and subject to change without notice.

Morningstar Investment Management shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, the information, data, analyses or opinions or their use. This commentary is for informational purposes only. The information, data, analyses, and opinions presented herein do not constitute investment advice, are provided solely for informational purposes and therefore are not an offer to buy or sell a security. Before making any investment decision, please consider consulting a financial or tax professional regarding your unique situation.

Morningstar Investment Management LLC is not affiliated with Pensions & Investments.

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