Retirement Services

Underwritten by United of Omaha Life Insurance Company or Companion Life Insurance Company

QDIA Choices for Retirement Savings

401(k) Services (January 2016)

When it comes to QDIAs (Qualified Default Investment Alternatives), one size does not fit all, and options can differ significantly. That’s why we offer four distinct choices that essentially let you select the QDIA that works best for you and your employees.

Four QDIA ContinuumSM Options

This table illustrates the differences between our QDIA portfolios.

Target Date Funds

Ease of concept/all–in-one funds managed to a projected retirement date or along an investment “glidepath.”

Vanguard Target Retirement
  • Managed to Retirement
  • Converts to income fund 7 years after target date
  • All Index Funds
  • Lowest cost within the continuum
  • Single manager approach
  • Focus on Capital Accumulation
  • May appeal to an employee base that embraces an all-index fund approach/invest in broad markets strategy
GlidePath RetirementSM
  • Managed through Retirement
  • Glidepath continues for 20 years beyond target date
  • Access to full universe of investment options
  • Multi-manager approach
  • Focus on Capital Accumulation and Retirement Income
  • May appeal to an employee base that embraces a strategy that utilizes both active management and index funds

Individually Managed Accounts (IMAs)

A retirement account that is managed by an investment professional.

Stadion Managed Accounts
  • Professionally managed portfolios based on age and risk objectives
  • A tactical asset allocation strategy focused on downside protection
  • Utilizes exchange-traded funds (ETFs) which enhances trading and market flexibility
  • Some Customization
  • May appeal to an employee that places emphasis on limiting market losses while still desiring to participate when there are market gains
Morningstar® Retirement ManagerSM
  • Personalized savings and investment strategy
  • Ongoing account management
  • Utilizes funds selected by the plan
  • Focus on target retirement income goal
  • Most Customizable
  • May appeal to an employee base that prefers professional investment management based upon unique circumstances and outside accounts

With a QDIA as the default investment option for your plan, your fiduciary risk is reduced when making contributions on behalf of employees who do not provide explicit investment instructions.

And employees not comfortable with making their own investment decisions can breathe easier. Their investment selections are greatly simplified with a QDIA and they will have an acceptable long-term investment strategy under the guidelines of the Employee Retirement Income Security Act (ERISA).

Employees can also opt out of the QDIA if they choose to build their own portfolios. If they do, other investment options in your retirement plan provide access to funds in many different asset classes and styles that are carefully screened by Mutual of Omaha’s Investment Manager Oversight Committee.

Questions? Please contact your Mutual of Omaha representative or send us an email and we’ll have someone contact you. We’re always here to help you and your employees get retirement right®.

Questions? Please Call: (888) 917-7120