Defined contribution plans account for 46% of pension assets among U.S companies with more than $250 million in plan assets and 74% of assets among companies with less than $250 million in pension assets, according to research by Greenwich Associates.
Also, the percentage of large plans that offer target-date retirement funds as an investment option in their 401(k) plans increased to 80% in 2007 from 60% a year earlier. At the same time, the share of companies seriously considering offering target-date funds in the next two years increased to 48% in 2007 from 36% in 2006.
According to Greenwich’s research, the average DC plan’s allocation to international equities increased to 8.4% in 2007 from 6% in 2006 among funds with more than $250 million in plan assets. Allocations among smaller funds increased to 9% of total assets from 8%.
