Is compliance with the QDIA regulations the exclusive means to obtain fiduciary protection?
No. The standards set forth in the QDIA regulations are not intended to be the exclusive means by which a fiduciary might satisfy responsibilities with respect to the investment of assets in the individual account of a participant. Accordingly, a fiduciary may select a non-QDIA default investment, provided that such investment choice is prudent, as determined in accordance with the standards of care set forth under ERISA Section 404(a). Notably, on July 23, 2008, the DOL issued proposed regulations that apply to the general prudence rules of ERISA Section 404(a). Conclusion For plan sponsors considering adopting the automatic enrollment features for an upcoming plan year, White & Case is available to help determine the practical implications, prepare the required plan amendments and participant notices and advise with respect to the qualified default investment alternatives.
