Recent market and regulatory trends suggest plan sponsors face some new responsibilities to maximize the performance of defined contribution plans. With new regulations on the horizon that will give plan sponsors some new fiduciary duties regarding educating and informing their participants about their benefits, it is the ideal time to look beyond minimum regulatory requirements and consider more proactive improvement opportunities. Plan sponsors should consider more passive investment strategies, develop or improve investment policy statements and enhance their educational offerings to improve the overall performance of their defined contribution plans.
Mercer. (2009). Mercer 2009 DC Global Survey. New York, NT: Author .
3.
Simon, W.S. ( 2005, March 30). Fiduciary focus: Active vs. passive investing (Part 4). MorningstarAdvisor. Retrieved from http://advisor.morningstar.com/articles/fcarticle.asp?docId=4014
4.
Hess, M., Ameriks, J., & Donaldson, S.J. (2008, March 4). Evaluating and implementing target-date portfolios: Four key considerations. Valley Forge, PA: Vanguard Investment Counseling & Research, Vanguard Group.
5.
See Hess et al. (2008).
6.
See Hess et la. (2008).
7.
Tokat, Y., & Stockton, K. ( 2006). A primer on tactical asset allocation strategy evaluation . Valley Forge, PA.: Vanguard Investment Counseling & Research, Vanguard Group.
8.
U.S. Department of Labor, Employee Benefits Security Administration. (2010, November 29). Target Date Retirement Fund Disclosures (Fact Sheet) . Washington, DC:Author.
9.
Employee Benefit Research Institute. ( 2010, November 22). Advisory from Employee Benefit Research Institute (Press release). Retrieved from www.ebri.org/pdf/PR.901.22Nov10.401k_Update.pdf
10.
Rosenbloom, J. S. (Ed.). ( 2006). The handbook of employee benefits (6th ed.). New York, NY: McGraw-Hill .
11.
See Employee Benefit Research Institute (2010 ).
12.
Plansponsor.com. (2010, November 13). 2009 PlanSponsor DC Survey. PlanSponsor . Retrieved from http://www.plansponsor.com/2010_DC_Survey.aspx
13.
See Plansponsor.com (2010 ).
14.
Cohen, J. ( 2010).Target date glide paths: Why to vs. through may be the wrong question. PlanAdviser.
15.
Ward, J. ( 2011, January). Misbehavioral finance: Why plan sponsors fail . PlanSponsor. Retrieved from http://www.plansponsor.com/MagazineArticle.aspx?id=6442476520
16.
See Ward (2011).
17.
U.S. Department of Labor, Employee Benefits Security Administration. ( 2010, October 14). Final rule to improve transparency of fees and expenses to workers in 401(k)-type retirement plans (Fact sheet). Washington, DC: Author.
18.
Society for Human Resources Management. (August 25, 2010). SHRM Poll: 401(k) Investment education and advice organizations are providing to plan participants (PowerPoint presentation) . Alexandria, VA: Author.
19.
See U.S. Department of Labor, Employee Benefits Security Administration ( 2010).
