Vanguard reports on meeting QDIA notice requirements
OREANDA-NEWS. October 23, 2015. A U.S. Department of Labor regulation on qualified default investment alternatives (QDIAs) requires that participants who are enrolled in QDIAs be notified in advance of the first default investment.
To comply with this regulation under the Pension Protection Act, participants must receive an initial notice before their assets are invested in a QDIA. Afterward, an annual notice must be provided no more than 90 days, but not less than 30 days, before the beginning of the plan year.
Vanguard's notice template and Vanguard Target Retirement Fund fact sheet are available below for downloading and for you to send to your participants to meet these QDIA notification requirements. The template highlights plan features and describes participants' rights and responsibilities. The fund fact sheet outlines risks and asset allocation.