<PLAN NAME> Retirement Plan
QUALIFIED DEFAULT INVESTMENT ALTERNATIVE (QDIA)
EMPLOYEE NOTICE
[Note to employer:
1) This notice should be printed on your company letterhead and distributed to the appropriate
participants in your plan.
2) This notice has been provided as a sample only. When completing for your plan, please be sure
that you add information that is accurate and appropriate to your specific plan. Only retain the
sample alternatives if these are applicable to your plan. ]
Purpose of this notice
<ER Name> has adopted a qualified retirement plan to help you attain financial security during your
retirement years. As a participant, you decide how your retirement plan dollars will be invested. If you
do not make an investment election, your contributions will be invested in the Qualified Default
Investment Alternative (QDIA).
This Qualified Default Investment Alternative (QDIA) Employee Notice:
(1) describes when the QDIA is used;
(2) provides details regarding the QDIA selected;
(3) outlines your right to direct the investment of your plan dollars to other investments available in
the Plan or to elect not to have contributions withheld from your pay, if applicable; and
(4) explains how you can obtain additional information regarding those additional investment
alternatives.
Keep this disclosure with your Summary Plan Description and other retirement plan documents.
When the default fund will be used
You can invest your plan dollars in any of the investment alternatives available in your Plan. In the
absence of an investment election, your future contributions will be invested in the plan’s QDIA under
the following circumstance(s):
 You have made a salary reduction election without an investment election;
 An employer discretionary contribution has been made on your behalf but you have not provided
an investment election;
 The plan contains an automatic enrollment feature and you did not make an investment election
during the notice period. <xx%> of your eligible compensation will be contributed to the plan as an
elective contribution.
[Note to employer: If Option 1 is selected on QDIA Selection Form – Send Default Investment
Notice to new participants only.]
[Note to employer: Include the following information if Option 2 is selected on QDIA Selection
Form – Send Default Investment Notice to new participants and existing participants whose
future contributions are defaulted to QDIA.] Prior to <enter date>, the plan’s default option was the
<enter Fund Name – [Short Term Fund SA14]>. Effective <enter date>, if you have not made your
own affirmative investment elections, any future contributions will be deposited to the QDIA described
below. [Note to employer: Use this language if you are unable to identify existing participants
who have affirmatively elected the default option as their own investment election.] In addition,
effective <enter date>, if you have affirmatively elected 100% of contributions to be deposited in
<enter option name – [Short Term SA14]>, any future contributions will be deposited to the QDIA
described below.
[Note to employer: Include the following information if Option 3 is selected on QDIA Selection
Form – Send Default Investment Notice to new participants and existing participants whose
Sample QDIA Notice
LVIP Wilshire Conservative Profile Fund
PAD0711-0122
EMCM-112907D
future contributions and existing balances are defaulted to QDIA.] Prior to <enter date>, the
plan’s default option was the <enter Fund Name – [Short Term Fund SA14]>. Effective <enter date>,
if you have not made your own investment elections, your future contributions and any existing
account balance will be deposited to the QDIA described below. [Note to employer: Use this
language if you are unable to identify existing participants who have affirmatively elected the
default option as their own investment election.] In addition, effective <enter date>, if you have
affirmatively elected 100% of contributions to be deposited in <enter fund option – [Short Term
SA14]> and 100% of your account is in this option, any future contributions will be deposited and your
existing account balance will be transferred to the QDIA described below.
Default investment option described
The QDIA for your plan is:
[Note to employer: Include QDIA investment description of investment option selected. If LVIP
Wilshire Target Maturity Profile Funds are selected, include description of all four funds]
<LVIP Wilshire Conservative Profile – The LVIP Wilshire Conservative Profile account seeks a high
level of current income with some consideration given to growth of capital. Lincoln Investment
Advisors Corporation is the advisor for the account. The LVIP Wilshire Conservative Profile invests
approximately 60% of its assets in underlying funds which invest primarily in fixed-income securities
and approximately 40% in underlying funds which invest primarily in equity securities. There is a
0.20% annual investment management fee assessed on assets and a 0.97% underlying mutual fund
fee.>
<LVIP Wilshire Moderate Profile – The LVIP Wilshire Moderate Profile account seeks a balance
between a high level of current income and growth of capital, with an emphasis on growth of capital.
Lincoln Investment Advisors Corporation is the advisor for the account. The LVIP Wilshire Moderate
Profile invests approximately 40% of its assets in underlying funds which invest primarily in fixedincome securities and approximately 60% in underlying funds which invest primarily in equity
securities. There is a 0.20% annual investment management fee assessed on assets and a 1.06%
underlying mutual fund fee. >
<LVIP Wilshire Moderately Aggressive Profile – The LVIP Wilshire Moderately Aggressive Profile
account seeks a balance between a high level of current income and growth of capital, with a greater
emphasis on growth of capital. Lincoln Investment Advisors Corporation is the advisor for the
account. The LVIP Wilshire Moderately Aggressive Profile invests approximately 20% of its assets in
underlying funds which invest primarily in fixed-income securities and approximately 80% in
underlying funds which invest primarily in equity securities. There is a 0.20% annual investment
management fee assessed and a 1.07% underlying mutual fund fee. >
<LVIP Wilshire Target Maturity Profile Funds – The following four Target Maturity options are
designed for investors planning to retire close to the year indicated in the name of the fund.
•
LVIP Wilshire 2010 Profile – The 2010 profile is designed for investors with a birth year before
1947. The Target Maturity Profiles seek the highest total return over time with an increased
emphasis on capital preservation as the target date approaches. Thereafter, an emphasis will be
placed on high current income with a secondary focus on capital appreciation. Lincoln Investment
Advisors Corporation is the advisor for the account. The current target allocation for the LVIP
Wilshire 2010 Profile includes investing approximately 51% of its assets in underlying funds which
invest primarily in fixed-income securities and approximately 49% in underlying funds which invest
primarily in equity securities. The fund will change over time, becoming more conservative as you
approach retirement age. There is a 0.20% annual investment management fee assessed on
assets and a 0.97% underlying mutual fund fee.
•
LVIP 2020 Profile – The 2020 profile is designed for investors with a birth year between 1947 and
1957. The Target Maturity Profiles seek the highest total return over time with an increased
emphasis on capital preservation as the target date approaches. Thereafter, an emphasis will be
Sample QDIA Notice
LVIP Wilshire Conservative Profile Fund
PAD0711-0122
EMCM-112907D
placed on high current income with a secondary focus on capital appreciation. Lincoln Investment
Advisors Corporation is the advisor for the account. The current target allocation for the LVIP
Wilshire 2020 Profile includes investing approximately 58% of its assets in underlying funds which
invest primarily in equity securities and approximately 42% in underlying funds which invest
primarily in fixed-income securities. The fund will change over time, becoming more conservative
as you approach retirement age. There is a 0.20% annual investment management fee assessed
on assets and a 1.06% underlying mutual fund fee.
•
LVIP 2030 Profile – The 2030 profile is designed for investors with a birth year between 1958 and
1967. The Target Maturity Profiles seek the highest total return over time with an increased
emphasis on capital preservation as the target date approaches. Thereafter, an emphasis will be
placed on high current income with a secondary focus on capital appreciation. Lincoln Investment
Advisors Corporation is the advisor for the account. The current target allocation for the LVIP
Wilshire 2030 Profile includes investing approximately 73% of its assets in underlying funds which
invest primarily in equity securities and approximately 27% in underlying funds which invest
primarily in fixed-income securities. The fund will change over time, becoming more conservative
as you approach retirement age. There is a 0.20% annual investment management fee assessed
on assets and a 1.07% underlying mutual fund fee.
•
LVIP 2040 Profile – The 2040 profile is designed for investors with a birth year of 1968 or after.
The Target Maturity Profiles seek the highest total return over time with an increased emphasis on
capital preservation as the target date approaches. Thereafter, an emphasis will be placed on high
current income with a secondary focus on capital appreciation. Lincoln Investment Advisors
Corporation is the advisor for the account. The current target allocation for the LVIP Wilshire 2040
Profile includes investing approximately 92% of its assets in underlying funds which invest
primarily in equity securities and approximately 8% in underlying funds which invest primarily in
fixed-income securities. The fund will change over time, becoming more conservative as you
approach retirement age. There is a 0.20% annual investment management fee assessed on
assets and a 1.16% underlying mutual fund fee. >
Making investment elections
You must give instructions to the individual(s) named in the last section of this document as to how
you want your plan dollars invested. You may change (switch) from the QDIA investment to another
investment of your choosing without financial penalty. However, ongoing investment and account fees
may apply.
There are two categories of assets for which you may provide investment instructions – future
contributions and existing account balances.
•
•
You may change investment elections for your future contributions.
You may change the investment elections for your existing account balances.
For new participants: You may make investment elections on an Enrollment Form.
For existing participants: You may make investment elections one of three ways.
(1) You may access the Lincoln Financial Group secure participant Web site, 24 hours a day, seven
days a week: https://webaccess.lfg.com
(2) You may utilize the Lincoln Financial Group automated telephone access system* toll free at
800 510-4015; or
(3) You may call the Customer Contact Center at 800 510-4015, Monday through Friday, from 8 a.m.
to 8 p.m. Eastern Time.
The New York Stock Exchange closes for trading at 4:00 p.m. ET on most business days. Therefore,
transactions received before market close will be assigned that day’s closing unit price. Transactions
received after market close, or on a weekend or holiday, will be assigned the closing unit price for the
next business day.
*Access may be subject to system availability.
Sample QDIA Notice
LVIP Wilshire Conservative Profile Fund
PAD0711-0122
EMCM-112907D
Additional information
You may request additional information on other investment options in the plan by contacting the
individual(s) listed below:
Designated plan fiduciary
Name or Title of Fiduciary
or designee of Fiduciary:
Address:
Phone:
Fax:
Sample QDIA Notice
LVIP Wilshire Conservative Profile Fund
PAD0711-0122
EMCM-112907D
<Name>
<Address>
<City, State, Zip>
<(000) 000-0000>
<(000) 000-0000>