Stair-Step QDIASM - An MVP Strategy
Qualified Default Investment Alternative
Stair-Step QDIASM is an alternative to traditional Qualified Default Investment Alternative (“QDIA”) options. The first-of-its kind retirement plan technology allows plan sponsors to be compliant with DOL requirements while unleashing fiduciary advisors to offer investments that they believe are best for the plan participants.
How Does Stair-Step QDIASM Work?
Stair-Step QDIASM allows the Plan Sponsor or Advisor to choose or create risk-based models that serve as the plan’s QDIA. Stair-Step QDIASM initially defaults a participant, who does not make an investment election, into an appropriate risk-based model based upon their age. Then when they age out of the risk-based model they were defaulted to, Stair-Step QDIASM will automatically rebalance the participant’s account balance into the next most conservative risk-based model!
For example, an advisor wishes to construct a set of 5 actively managed investment models composed of mutual funds. These risk-based based models then serve as the plan’s QDIA. A Participant under age 30 does not make an investment election and is defaulted into the “Aggressive Growth Model.” Once the participant reaches age 30 (or as otherwise defined), Stair-Step QDIASM will automatically move their balance into the next most conservative option – the “Moderate Growth Model.”
The plan participant, plan sponsor and advisor do nothing to accomplish this. As recordkeeper, MVP accomplishes it all in a fully automated process. Best of all, the investment selection, age-banding, specific timing and ability to re-enroll are customized by the plan sponsor or advisor!
As a result of MVP’s innovation, participants are able to have an appropriate diversified mix of investments to help them achieve a secure retirement future. The plan sponsor can improve their employees’ retirement outcomes and the advisor is free to offer their services as they know best with a key differentiator.
Our plan participants are more educated and hence better prepared for retirement because of the robust reporting and tools available from MVP.
CLIENT
Dr. Barrett Gunter, Unified Women's Healthcare
We moved our member 401(k) Plan program to MVP in 2015 and have been very pleased with their capabilities and service responsiveness both for our members and our own 401(k) Plan.
Client
Dave Evans, SVP & Publisher
Process Development
Many retirement plan providers sell a product. A product is a “boxed” or “canned” way of establishing and servicing retirement plans en masse. MVP and the advisors we partner with don’t treat a retirement plan as a product. Together, we offer customization, personal service, and a method of meeting fiduciary responsibility – a process. This process protects the plan sponsor, plan fiduciaries, and most importantly, the plan participants. No two companies are alike, so why should their retirement plans be?
MVP and the advisors we partner with can ensure the plan sponsor that their plan is administered compliantly. Together, we’ve got them covered because we understand that retirement plan administration is complex. Our clients have a business to run, and they don’t need to add the administration of the retirement plan to their list of responsibilities. TRUST is what we earn by providing peace-of-mind and assurance that the process is effective in helping secure the retirement future of our clients and their plan participants!
Partner Services
MVP views our relationship with advisors as an extension of each other’s firms. We partner at arms-length. We work together, understanding how our firms can best serve our clients and plan participants.
