More than half of non-profit companies that sponsor defined contribution plans offer a guaranteed lifetime income option, according to a survey sponsored by TIAA-CREF.
The report, “Not-for-Profit Plan Sponsor Insights,” shows 54% of respondents said they offer such an option and 87% of those plan to keep it. Of plans that do not offer a guaranteed lifetime income option, 34% said they believe “participants can access annuities outside the plan,” according to the survey, and 21% believe fees of such options are too high.
When asked whether they plan to conduct formal reviews of certain processes within the next 12 months, 39% each said they plan to review administrative fees and investment menus, while 38% plan to review investment fees and 34% to review plan design.
Eighty-six percent of respondents say their plan has an investment consultant, and 65% have an investment policy statement.
The survey of 835 plan executives in the non-profit sector was conducted by KRC Research from Jan. 18 to Feb. 17.