POINTS
OF HUE
POINTS OF PLAN DESIGN DIFFERENTIATION EMERGE IN
PLANSPONSOR’S ANNUAL DC SURVEY
Many factors weigh on the design of an organization’s defined contribution plan. Cost—not just of administering the plan, but of things like contri- bution levels—looms large. Plan design can, of course, play a significant
role in ensuring the program’s impact on attracting and retaining qualified staff,
and there are downstream impacts from those decisions that manifest themselves in
results such as rates of participation and deferral that can, in turn, have an impact
on cost. A less visible influence can perhaps be found even in ERISA’s admonition to
fiduciaries to ensure that the services rendered—and fees paid for those services—are
reasonable.
Whatever your current method(s) of assessment and evaluation, plan sponsors have
long appreciated the reality that, while every program may have its own unique set
of circumstances and constraints, there is value in being able to compare your retirement plan designs with a valid set of comparables, if only to ensure that your design
remains competitive.
Illustration by Greg Mably
PLANSPONSOR.com November 2011 49
