Evaluating and Selecting a Potential QDIA
Behavioral research has demonstrated that plan participants almost always take the path of least resistance. Recognizing this behavioral pattern is part of the thinking behind the auto defaults permitted under the Pension Protection Act of 2006, which facilitates a plan sponsor's designating a broadly appropriate choice as the easiest choice (or non-choice) for participants to make. BlackRock offers a variety of potential Qualified Default Investment Alternative (QDIA) solutions that may provide plan sponsors with appropriate and easy default investments for participants.
LifePath Target Date Funds
Introduced in 1993, LifePath set the standard as the industry's first target date fund, enabling plan sponsors of all sizes to provide their participants with a comprehensive target date fund solution.
- LifePath Target Date Funds provide the flexibility to meet your plan needs now and in the future.
So long as certain notice and disclosure requirements are met, and the investment alternative is one of the types permitted by the regulation. The plan sponsor is responsible for prudently selecting and monitoring a retirement plan's default investment option, including determining that the option satisfies the regulatory requirements to constitute a QDIA.
To determine if the LifePath® Portfolio mutual funds are an appropriate investment for you, carefully consider the funds' investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the funds' prospectuses, which may be obtained by calling 1-800-882-0052. Read the prospectus carefully before investing.