Defined contribution plan executives should watch the fees participants pay for investment management, offer investment funds that are appropriate for their employees and review the effectiveness of employer matching contributions, Mercer said in a news release today.
Barbara Marder, global leader of Mercer’s defined contribution business, said in the release that plan sponsors face many challenges in developing a well-structured DC plan to help meet the retirement requirements of participants, while minimizing the fiduciary risk of managing the plan and its investment lineup.
The list, titled “New Year’s Resolutions DC Plans Should Make Now,” also advises plan sponsors to examine the appropriateness of target-date funds for participants, scrutinize communications policies and methods between the plan and participants, and review and revise investment policy statements given the current focus on fiduciary risk of plan sponsors.
