Sticking with the default investment rather than pursuing  QDIAs? This is a great summary of some aspects that can help you be more discerning from Plan Adviser.

– Eric

Five things that confuse employers about QDIAs

Plan sponsors have a lot at stake in their choice of QDIAs (qualified default investment alternatives). The percentage of defined contribution plans using automatic enrollment jumped from 24% in 2006 to 57% in 2010, according to an Aon Hewitt survey. Among those that currently do not have automatic enrollment, 36% told Aon Hewitt that they are somewhat or very likely to add it for new hires in 2011.

Many employers now need to select a QDIA or evaluate their previously chosen one—and they should look closely, since the past few years have shown that most participants stick with the default investment. Advisers can help them navigate the following five areas that employers often find perplexing:

1. The Selection Process
2. Target Date Fund
3. Glide Path Nuances
4. Keeping Fees Low
5. Monitoring Effectiveness

For a detailed look at these five aspects, check out the full article here.