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Products May 18, 2015
DCIIA Paper Outlines DC Plan Success Factors
A new paper from the Defined Contribution Institutional Investment Association outlines best practices for promoting retirement readiness in the defined contribution plan context.
Reported by PLANADVISER staff
The Defined Contribution Institutional Investment Association (DCIIA) has developed a best practices framework to outline actions that defined contribution (DC) plan sponsors and fiduciaries can take to build plans that have the greatest potential to help participants achieve retirement readiness.
In “Defined Contribution Plan Success Factors: Framework for Plans with an Objective of Retirement Income Adequacy,” the DCIIA addresses specific factors related to plan design, investment structure, and plan monitoring. It can help plan sponsors and fiduciaries:
- Evaluate existing plans;
- Develop thoughtfully designed plans;
- Maximize the effectiveness of auto features programs; and
- Identify and address less-than-optimal plan participant behaviors.
The association notes that the framework is intended to provide ideas for plan sponsors and fiduciaries to consider; it is not expected that every recommendation will apply to every plan. Plan sponsors and fiduciaries should design a plan and implement the practices that make the most sense for their participants.
“The decisions that plan sponsors and fiduciaries make today will impact the retirement readiness of future generations of retirees,” DCIIA says.
The white paper is here.