Plan Sponsors

QDIA and Auto Enroll Participant Notices

QDIA and Auto Enroll Participant Notices: Written notices must be provided to participants by plan sponsors who offer a qualified default investment alternative (QDIA) for their ERISA governed plan and/or Auto Enroll as described below. The notice must contain a description of the circumstances in which default investments will be made, the participant's right to direct the investments, a description of the QDIA, if applicable, including a description of the investment objectives, risk and return characteristics, and fees and expenses, the transfer rights from the QDIA to other plan investment alternatives, and where the participant may obtain information about the plan's other investment alternatives.

TIAA-CREF has prepared sample participant notices designed to meet the final QDIA and Auto Enroll notice requirements. These notices are available for download (verify your plan type in the descriptions below before downloading). The notices should be reviewed with your legal counsel and modified to conform to your retirement plans' provisions.

QDIA

There are four components that comprise the QDIA package to support your QDIA initial and annual notification requirements:

  • Initial QDIA Notice– plan sponsors must provide this notice to new hires at least 30 days in advance of a participant's date of plan eligibility; or first investment in a QDIA; or on or before the date of plan eligibility (if the participant has the opportunity to make a permissible withdrawal as determined under section 414(w) of the Code under an Auto Enroll provision).
  • Annual QDIA Notice– plan sponsors must provide this notice to all eligible employees 30 days before the beginning of each plan year. However, if the plan offers Automatic Enrollment with a QDIA, the requirement is 30, but not more than 90 days before the beginning of each plan year.
  • QDIA TIAA-CREF Lifecycle Funds Fact Sheet– administrators must provide this to all eligible employees with the Initial and Annual QDIA Notices. This fact sheet is not required if the plan offers Automatic Enroll only without a QDIA.
  • Cover Letter – customizable template for Plan Sponsors.

Choose the appropriate package for your organization's plan type:

  1. For plans establishing a QDIA without automatic enrollment:
  2. For plans establishing a QDIA with automatic enrollment:

Auto Enroll

Initial Auto Enroll Notice - should be provided no later than the date of hire or as soon as practicable before first automatic contribution into the plan.

Annual Auto Enroll Notice - should be distributed 30 to 90 days prior to beginning of each plan year.

For plans with automatic enrollment only: