“meet a worker’s long-term retirement savings needs, rather than just preserving capital.” Heart of QDIA

datePosted on 20:23, April 20th, 2010 by lee

“Meet a worker’s long-term retirement savings needs, rather than just preserving capital.” This is the heart of QDIA.

At the risk of repeating myself, the majority of employers we meet with default employee funds into a money market account. They mean well. It’s not illogical to assume that if an employee fails to take the time to invest their money that the employer is acting prudently by defaulting the employee’s funds into a guaranteed account, but it’s not so. The government has decided in its infinite wisdom that if an employee fails to take the time to insure his or her funds are invested the responsibility defaults to the employer. I urge you to review this link in that it will prove invaluable in opening new cases. If you are selling 4o1k Safe we have this feature built into our plan. As the Sponsor, Administrator, and Fiduciary of our 401k plan we take this action not only because it’s in the best interest of the participants but because of the liability in sponsoring the plan.

http://www.mhco.com/Library/Articles/2009/AQDIAnotice_112009.html

categoryPosted in General Articles | printPrint
Related Posts:

Leave a Reply

You must be logged in to post a comment.