What is a QDIA?
Recognizing the need to help workers save more for retirement, Congress passed The Pension Protection Act (PPA) in 2006. A key provision of the PPA is the creation of the Qualified Default Investment Alternative (QDIA), a name given to certain types of investment services that can be used by employers to provide retirement account management to their employees. But as a result, those employers who do not implement a QDIA may be legally responsible if their retirement plan fails to produce adequate results for participants.
In establishing a Stadion QDIA, you are selecting qualified investment professionals to manage the investments in each of your plan participants' retirement accounts. Most notably, you're making this the default for the plan; employees can opt out if they want to make their own asset allocation decisions.