The DOL recently issued an information letter that reinforces its continued support of lifetime income vehicles for defined contribution retirement plans. In the letter, the DOL asserts that a prudent default investment for a plan fiduciary may include a target-date model that allocates investment funds to a guaranteed annuity with a guaranteed return element and a guaranteed lifetime income at retirement. Although the DOL stated that the investment vehicle at issue does not meet the safe harbor standards as a “qualified default investment alternative” or QDIA, the DOL does support the potential prudence of the investment. Find a copy of the DOL letter here.