<PLAN NAME> Retirement Plan
QUALIFIED DEFAULT INVESTMENT ALTERNATIVE (QDIA)
REQUIRED ANNUAL [or] INITIAL 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.
 If the asset allocation you complete on your enrollment form does not equal 100% or you choose
an investment option that is not available in the plan, some or all of your contributions will be
invested in the QDIA.
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]
<Aggressive Balanced – The Aggressive Balanced account consists of holdings in three different
asset classes: stocks, bonds, and money market instruments. The objective of the account is to
maximize long-term total return with an aggressive level of risk. The Lincoln National Life Insurance
Company is the advisor for Aggressive Balanced. Aggressive Balanced uses a sophisticated asset
allocation computer model to determine how much will be directed to each of three asset classes:
stocks, bonds and money market instruments. General policy includes a managed mix of stocks,
bonds and short-term investments. This account is managed with an aggressive style and will
Sample QDIA Notice
PAD0904-0237
EMBC0409-403DI
emphasize equity securities, including a small allocation in foreign stocks. There is a 0.75% annual
investment management fee assessed on assets and a 0.00% underlying mutual fund fee. >
<Balanced – The Balanced account consists of holdings in three different asset classes: stocks,
bonds, and money market instruments. The objective of the account is to maximize long-term total
return with a moderate level of risk. The Lincoln National Life Insurance Company is the advisor for
Balanced. Balanced uses a sophisticated asset allocation computer model to determine how much
will be directed to each of three asset classes: stocks, bonds and money market instruments. General
policy includes a managed mix of stocks, bonds and short-term investments. This account is
managed with a moderate style and will emphasize equity and fixed-income securities. There is a
0.75% annual investment management fee assessed on assets and a 0.00% underlying mutual fund
fee.
<Conservative Balanced – The Conservative Balanced consists of holdings in three different asset
classes: stocks, bonds and money market instruments. The objective of the account is to maximize
long-term total return with a conservative level of risk. The Lincoln National Life Insurance Company
is the advisor for Conservative Balanced. Conservative Balanced uses a sophisticated asset
allocation computer model to determine how much will be directed to each of three asset classes:
stocks, bonds and money market instruments. General policy includes a managed mix of stocks,
bonds and short-term investments. This account is managed with a conservative style and will
emphasize fixed-income securities. There is a 0.75% annual investment management fee assessed
on assets and a 0.00% underlying mutual fund fee.
< LVIP Delaware Foundation Conservative Allocation – The LVIP Delaware Foundation
Conservative Allocation account seeks a combination of current income and preservation of capital
with capital appreciation. Lincoln Investment Advisors Corporation is the advisor for the account. The
LVIP Delaware Foundation Conservative Allocation account 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 0.75% underlying mutual fund fee.>
< LVIP Delaware Foundation Moderate Allocation – The LVIP Delaware Foundation Moderate
Allocation account seeks capital appreciation with current income as a secondary objective. Lincoln
Investment Advisors Corporation is the advisor for the account. The LVIP Delaware Foundation
Moderate Allocation account invests approximately 40% of its assets in underlying funds which invest
primarily in fixed-income 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
0.76% underlying mutual fund fee. >
< LVIP Delaware Foundation Aggressive Allocation – The LVIP Delaware Foundation Aggressive
Allocation account seeks long term capital growth. Lincoln Investment Advisors Corporation is the
advisor for the account. The LVIP Delaware Foundation Aggressive Allocation 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 0.76% underlying mutual fund fee. >
<LVIP Wilshire Target Maturity Profile Funds – The following four LVIP Wilshire Target Maturity
options are designed for investors planning to retire close to the year indicated in the name of the
fund. If the date of birth is not provided, defaulted contributions will be invested in Short Term (SA14)
until the missing information is received. Upon receipt, the participant’s future investment allocations
will be directed to the age-appropriate LVIP Wilshire Target Maturity Profile. The participant’s
accumulated balance will remain in the LVIP Money Market investment option until the participant
transfers the balance by accessing their account via the Web or by calling the Customer Contact
Center.
•
LVIP Wilshire 2010 Profile – The 2010 profile is designed for investors with a birth year before
1947. The LVIP Wilshire Target Maturity Profiles seek the highest total return over time with an
increased emphasis on capital preservation as the target date approaches. Thereafter, an
Sample QDIA Notice
PAD0904-0237
EMBC0409-403DI
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 45% of its assets in
underlying funds which invest primarily in fixed-income securities and approximately 55% 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 0.71% underlying mutual fund fee.
•
LVIP Wilshire 2020 Profile – The 2020 profile is designed for investors with a birth year between
1947 and 1957. The LVIP Wilshire 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 2020 Profile includes investing approximately 63% of its assets in
underlying funds which invest primarily in equity securities and approximately 37% 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 0.72% underlying mutual fund fee.
•
LVIP Wilshire 2030 Profile – The 2030 profile is designed for investors with a birth year between
1958 and 1967. The LVIP Wilshire 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 76% of its assets in
underlying funds which invest primarily in equity securities and approximately 24% 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 0.73% underlying mutual fund fee.
•
LVIP Wilshire 2040 Profile – The 2040 profile is designed for investors with a birth year of 1968
or after. The LVIP Wilshire 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 0.74% 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
Sample QDIA Notice
PAD0904-0237
EMBC0409-403DI
(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.
Additional information
You may view additional information on other investment options available in the plan by visiting
www.LincolnFinancial.com and clicking on Financial Products > Retirement Plans > Lincoln
DirectorSM group variable annuity > Fund Options or obtain additional information by contacting the
individual(s) listed below:
Lincoln Financial Group Customer Contact Center:
Designated plan fiduciary
Name or Title of Fiduciary (trustee)
or designee of Fiduciary:
Address:
Phone:
Fax:
Sample QDIA Notice
PAD0904-0237
EMBC0409-403DI
800 510-4015
<Name>
<Address>
<City, State, Zip>
<000 000-0000>
<000 000-0000>