Stadion can serve as fiduciary when its TDFs are used as the qualified default investment alternative (QDIA) for defaulted participants in a retirement plan. The company has been providing 3(38) protection in its separately managed accounts since 2002.
“We manage retirement assets using an innovative, rules-based investment model designed to react to market movements so that we participate when the market is doing well and provide protection when it’s going down,” said Tim McCabe, Stadion’s senior vice president of sales and service, and overseer of the company’s retirement offerings. “Our new 3(38) designation allows us to bring that same level of investment management oversight to defaulted QDIA retirement plan participants who use our target-date funds.”
The 3(38) protection is appealing to advisers who are interested in products for their plan sponsor clients, particularly with the fiduciary definition changing (see “PSNC 2012: The New Fiduciary”), McCabe told PLANADVISER.
Stadion does not charge an additional fee for this service, he added.