PLANSPONSOR - December 2017/January 2018 - 21

A
COVER STORY
QDIA
IN TRANSITION
Participants are moved to a managed
account as they draw closer to retirement
" ONE THING we've learned as an industry ... is that 'auto' solutions work, " says Sangeeta Moorjani, Bostonbased
head of workplace product marketing and advice at Fidelity Investments. Fidelity is now among the
providers pioneering an evolution in automated plan design: qualified default investment alternatives
(QDIAs) that seek to move participants by default into the right investment at the right time. Most often that
will mean automatically switching participants, unless they opt out, from a default target-date fund (TDF)
into a managed account when they reach a predetermined trigger, such as age 50.
" 'It's a very appealing concept' is what we're hearing from the [sponsor] marketplace, " says Holly
Verdeyen, senior director of defined contribution (DC) strategy at consultant and asset manager Russell
Investments, in Chicago. " In terms of evaluation, we're talking to sponsors about it. But in terms of movement,
we haven't seen sponsors start using these hybrids yet. "
Investment consultant Callan LLC has no plans yet that have implemented hybrid QDIAs, but it has
talked with sponsors about the approach's viability, according to James Veneruso, senior vice president, in
Summit, New Jersey. " There are very good arguments for it, " he says. " But, practically speaking, there also
are issues. "
Art by Lars Leetaru
PLANSPONSOR.com December 2017-January 2018 21

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PLANSPONSOR - December 2017/January 2018

Table of Contents for the Digital Edition of PLANSPONSOR - December 2017/January 2018

A QDIA in Transition
An Unseen Challenge
Alternative Assets in TDFs
Active or Passive Strategies
Boosting Employee Savings
Selective Mining
Future Shock
PLANSPONSOR - December 2017/January 2018 - Cover1
PLANSPONSOR - December 2017/January 2018 - Cover2
PLANSPONSOR - December 2017/January 2018 - 1
PLANSPONSOR - December 2017/January 2018 - 2
PLANSPONSOR - December 2017/January 2018 - 3
PLANSPONSOR - December 2017/January 2018 - 4
PLANSPONSOR - December 2017/January 2018 - 5
PLANSPONSOR - December 2017/January 2018 - 6
PLANSPONSOR - December 2017/January 2018 - 7
PLANSPONSOR - December 2017/January 2018 - 8
PLANSPONSOR - December 2017/January 2018 - 9
PLANSPONSOR - December 2017/January 2018 - 10
PLANSPONSOR - December 2017/January 2018 - 11
PLANSPONSOR - December 2017/January 2018 - 12
PLANSPONSOR - December 2017/January 2018 - 13
PLANSPONSOR - December 2017/January 2018 - 14
PLANSPONSOR - December 2017/January 2018 - 15
PLANSPONSOR - December 2017/January 2018 - 16
PLANSPONSOR - December 2017/January 2018 - 17
PLANSPONSOR - December 2017/January 2018 - 18
PLANSPONSOR - December 2017/January 2018 - 19
PLANSPONSOR - December 2017/January 2018 - A QDIA in Transition
PLANSPONSOR - December 2017/January 2018 - 21
PLANSPONSOR - December 2017/January 2018 - 22
PLANSPONSOR - December 2017/January 2018 - 23
PLANSPONSOR - December 2017/January 2018 - 24
PLANSPONSOR - December 2017/January 2018 - 25
PLANSPONSOR - December 2017/January 2018 - An Unseen Challenge
PLANSPONSOR - December 2017/January 2018 - 27
PLANSPONSOR - December 2017/January 2018 - 28
PLANSPONSOR - December 2017/January 2018 - 29
PLANSPONSOR - December 2017/January 2018 - 30
PLANSPONSOR - December 2017/January 2018 - 31
PLANSPONSOR - December 2017/January 2018 - Alternative Assets in TDFs
PLANSPONSOR - December 2017/January 2018 - 33
PLANSPONSOR - December 2017/January 2018 - Active or Passive Strategies
PLANSPONSOR - December 2017/January 2018 - 35
PLANSPONSOR - December 2017/January 2018 - Boosting Employee Savings
PLANSPONSOR - December 2017/January 2018 - 37
PLANSPONSOR - December 2017/January 2018 - 38
PLANSPONSOR - December 2017/January 2018 - 39
PLANSPONSOR - December 2017/January 2018 - 40
PLANSPONSOR - December 2017/January 2018 - 41
PLANSPONSOR - December 2017/January 2018 - Selective Mining
PLANSPONSOR - December 2017/January 2018 - 43
PLANSPONSOR - December 2017/January 2018 - Future Shock
PLANSPONSOR - December 2017/January 2018 - 45
PLANSPONSOR - December 2017/January 2018 - 46
PLANSPONSOR - December 2017/January 2018 - 47
PLANSPONSOR - December 2017/January 2018 - 48
PLANSPONSOR - December 2017/January 2018 - Cover3
PLANSPONSOR - December 2017/January 2018 - Cover4
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