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.
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