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DALBAR Announces QDIA ValidationPutnam Absolute Return 500 Fund Is Certified |
(Boston, MA - March 4, 2009) DALBAR announced the introduction of a new service designed to assist retirement plans with the responsibility of selecting and monitoring investments they choose for those employees who don't feel comfortable making their own investment decisions. These investments chosen for employees are qualified default investment alternatives (QDIAs). They were enacted into federal law by the Pension Protection Act of 2006 and implemented through regulations issued by the United States Department of Labor (DoL).
The new DALBAR service addresses the quandary that both employers and advisers face in meeting the DoL requirement to prudently select and monitor QDIAs. The QDIA Validation now establishes a standard that fiduciaries and administrators can use to compare various QDIAs in their selection and monitoring. The uniform evaluation against a single set of standards permits a rational comparison of a very diverse set of alternatives.
The QDIA Validation produces a detailed report that identifies compliance and deficiencies of each investment tested. Deficiencies that often exist can be self-corrected to avoid regulatory action. Unlike fund tracking, the QDIA Validation provides a line-by-line regulatory evaluation of each investment and applies uniform standards to the diverse types of investments that constitute valid QDIA alternatives.
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