Target date funds (TDFs) are one of four qualified default investment alternatives (QDIA) provided under the 2006 Pension Protection Act (PPA). For more than a decade, plan fiduciaries have made TDFs the default of defaults for plan participants. These individual decisions by plan fiduciaries have skyrocketed the growth of TDFs and have fundamentally changed how many Americans save for retirement.
In February of 2013, the Employee Benefits Security Administration (ESBA) from the Department of Labor (DOL) published, “Target Date Retirement Funds – Tips for ERISA Plan Fiduciaries.” Unlike the blizzard of
disclosures the DOL has mandated, these straightforward guidelines provide a clear path towards doing the work of a good plan fiduciary.
To download a copy of the 8 guidelines, fill out the form on the right.
For a complete toolkit of materials focused on the most popular QDIA, target date funds, click here.