• Department of Labor Issues Final Regulations on Qualified Default Investment Alternatives
  • November 12, 2007 | Authors: Jacob I. Friedman; Ira M. Golub; Robert M. Projansky; Steven D. Weinstein; Allen J. Wolberg
  • Law Firm: Proskauer Rose LLP - New York Office
  • On October 24, 2007, the Department of Labor ("DOL") issued final regulations on the use of qualified default investment alternatives ("QDIA") in defined contribution plans that allow for participant directed investments. The final regulations implement Section 404(c)(5) of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), which was added under the Pension Protection Act of 2006 (the "PPA") by providing "safe harbor" relief under ERISA for plan fiduciaries in situations in which participants fail to provide investment directions.