TEN STEPS THAT DEFINED CONTRIBUTION PLAN SPONSORS SHOULD TAKE IN 2013
With defined contribution (DC) plans continuing to assume greater importance in employees' achieving retirement security, Mercer believes that 2013 is shaping up as a year when many sponsors will take a fresh look at their plans' objectives, investment options, and communications with participants.
Go to press release
10 IDEAS TO CONSIDER
Is your DC plan as successful as it can be?
IS YOUR DC PLAN SUCCESSFUL?
FACTORS TO CONSIDER WHEN MEASURING SUCCESSS
Volume VI - January 2012
We are delighted to present the sixth edition of Mercer’s DC Connections. In this issue, we explore the critical success factors of defined contribution (DC) plans. The topic of plan success comes during a period of turmoil that is driving the prioroties of the DC plan. From an employee perspective, retirement savings is becoming a more important element of the employment value proposition. As highlighted in Mercer's recent Inside Employees' MindsTM survey of attitudes about elements of the employment value proposition, effective savings and retirement programs were highlighted as an important element of the value proposition in nine of the 17 countries surveyed. Further, in the US and Canada, retirement programs ranked the second most important element (behind pay) to the elements of the employment "deal."
Download PDF A4 | US Letter
2011 US Defined Contribution Investment Survey
Mercer issued a short survey (19 questions) in May 2011 to assess plan sponsor's views on investment trends in defined contribution (DC) plans - such as the use of inflation protection options and other asset classes as standalone options, the trend in target date/target risk options and the usage of investment advice/managed accounts.
Defined contribution (DC) plans are becoming the pre-eminent retirement savings vehicle for many employees. While the investment structure of a DC plan has always been important, it has taken on greater significance as more and more workers are relying on this type of retirement plan for their savings objectives.
To meet their fiduciary responsibilities, plan sponsors must provide participants with a well-designed retirement savings program with a diversified fund line-up that encourages employee participation. But in today’s environment, sponsors face many challenges, including:
Changing legislative environment, such as the Pension Protection Act
Heightened scrutiny by participants, regulators and other third parties concerning plan costs
Insufficient investment knowledge among participants, which can lead to poor investment choices resulting in unmet retirement-saving goals
DC plan objectives
Our investment consulting services are designed to enhance defined contribution plans by focusing on the following objectives:
To enable Plan participants to take advantage of wealth accumulation opportunities
To improve participant satisfaction with the Plan’s investments
To ensure fiduciaries – the Investment Committee, investment managers, and trustee –comply with ERISA and other applicable state and federal regulations for the administration and investment of the Plan assets, including 404(c) compliance
To manage financial relationships with the recordkeeper, trustee, managers, etc., to help maximize relationship value
Mercer is a leading global provider of investment services, and offers customized guidance at every stage of the investment decision, risk management and investment monitoring process. We have been dedicated to meeting the needs of clients for more than 30 years, and we work with the fiduciaries of pension funds, foundations, endowments and other investors in some 35 countries. We assist with every aspect of institutional investing (and retail portfolios in some geographies), from strategy, structure and implementation to ongoing fiduciary management.