Fiduciaries generally believe that they are protected from litigation by two safe harbors in their selection of target date funds (TDFs):
1. Properly structured TDFs are Qualified Default Investment Alternatives (QDIAs) under the Pension Protection Act of 2006. Form over substance.
2. There is safety in numbers, so choosing one of the most popular TDF providers is prudent. Fidelity, T. Rowe Price and Vanguard manage 75% of the blossoming TDF market. You can’t go wrong with a brand name. Or can you?