Best Intentions: The unintended consequences of plan design
Defined contribution plan sponsors want the best outcomes for participants, but plan improvements can also bring unexpected consequences. To help understand how this can occur, BlackRock applies deep participant-level data analysis to three real world case studies—and reveals surprising results.
Even the best intentions can bring unintended consequences. Defined contribution plan design decisions are complex, and even successful implementations can occasionally reveal the limits of some baseline assumptions. BlackRock applies deep participant-level data analysis to three real world case studies and examines the specific circumstances the plan sponsor hoped to manage, the steps they took (or didn’t take) and the explicit or implicit assumptions they made when choosing a course of action.