Most Employers Don’t Plan Contribution Reduction

A survey by Mercer found that 73% of organizations globally do not plan to reduce the level of employer contributions to defined contribution plans in the remainder of 2009, while 14% of have already done so in the past six months

To date, a third have reviewed their overall investment menus (32%) and reviewed both investment and administrative fees (33%), while 43% are likely to take these actions by year-end, according to a news release from Mercer about its latest Leading Through Unprecedented Times global survey.

Regarding defined benefit plans, 37% of organizations plan to get a better understanding of, and take actions to mitigate the risk inherent in these plans, according to the news release. Within the six months prior to the survey, 34% have already done so.

For more stories like this, sign up for the PLANADVISERdash daily newsletter.

Looking ahead, organizations are more likely to change their DB plan investment strategy to reduce risk (38%) rather than change the funding policy (25%). Fourteen percent and 12%, respectively, have already taken those steps. Only 16% of organizations are likely to cut back or stop accruals in the remainder of the year, while 10% have already done so.

 

 

«