Department of Labor Guidance on Target Date Funds and Annuity Selection for Qualified Default Investment Alternatives

This document is about the Department of Labor providing guidance on the treatment of target date funds that invest in unallocated deferred annuity contracts as qualified default investment alternatives (QDIAs) under ERISA. The Department concluded that the use of unallocated deferred annuity contracts as investments would not cause the target date funds to fail to meet the QDIA requirements, and that the selection of the annuity provider and contracts would satisfy ERISA's fiduciary requirements if the plan's designated investment manager meets the conditions of the annuity selection safe harbor.