Boomerang Employees: Rehires and Retirement Plans Bookmark

A boomerang employee (as we will use that name in this article) is, quite simply, one who leaves and then comes back to work…a rehire. As is so often the case, the retirement plan rules related to rehires are quite different than those that apply to other areas of employment and benefits. Whether rehiring a former employee is a rare occurrence or part of your regular course of business, it is important to understand how these rules work.

New Proposed QDIA Rules Bookmark

New Proposed QDIA Rules
The opportunity to save in an employer-sponsored retirement plan is certainly an important benefit. Over the years plan sponsors have sometimes encountered issues with employees who begin to participate but who make no affirmative election about investments. The Pension Protection Act of 2006 (PPA) addressed this by providing employers a fiduciary “safe harbor” by offering a Qualified Default Investment Alternative ("QDIA").  QDIA rules cover investments made on behalf of participants in a plan's default investment option such as life cycle or target date funds, balanced funds, or managed accounts.