PLANSPONSOR - August/September 2018 - 4

Issue Intro
Engaged Participants
A
s an industry, we've fallen in love with automated plan features, because
they're powerful and can do great things-but such plan design has limitations.
Take
my experience several years ago. I left one employer and its retirement plan
for another, and, as I'm what we call an engaged participant, I set out on day one to
make order out of my various benefits before immersing myself in the new position.
As auto-enrollment was in place at this firm, the response to my request to set my
contribution rate was: I could do that at a later date-but not to worry, I was in the
plan. My contribution rate at my previous employer, though, had been significantly
higher than the automatic default in the plan I was joining now.
It's scenarios such as these, where all new employees are treated as if they are
fresh out of school, that can allow contribution rates to decrease-something you
don't often think about. Consider the unintended consequences of your plan design,
when you read " Getting Them Back on Track " (page 22).
My contribution rate at my previous
employer, though, had been
significantly higher than the automatic
default in the plan I was joining now.
Employees will participate in many plans over their work life, and their attitude
toward their defined contribution (DC) plans will most likely change according to
their stage in life-for example, 20 years ago I not only knew little about my retirement
plan, but I didn't have the confidence to advocate for my benefits. In this, the
fifth year of our Participant Survey, the PLANSPONSOR research group surveyed
participants, asking them to offer insights for our plan sponsor audience. We report
the results in " See How They Save " (page 38).
According to Brian O'Keefe, director, research and surveys, for PLANSPONSOR,
since their endorsement as a qualified default investment alternative (QDIA),
managed accounts have lagged behind target-date funds (TDFs) in growth, though
the curve has steepened as of late. Maybe that's because interest in these solutions
grows as participants amass more retirement savings and as their financial status
becomes more complex. Between 2015 and 2018, the increase in the number of
participants using one of the several forms of managed accounts was over 1 billion.
In our 2018 Managed Account Buyer's Guide (page 42), we indicate how these solutions
have evolved over the last few years and why they may interest your participants.
Every June, plan sponsors-and Plan Sponsor of the Year finalists and
winners-advisers and industry providers gather in Washington, D.C., to attend the
PLANSPONSOR National Conference. Our three days of in-depth coverage appeals
to plan sponsors of all types and sizes, and PLANSPONSOR staff report on each
session. Some of the highlights of their coverage appear in this issue (page 28).
Nominations are now open for the 2019 Plan Sponsor of the Year Awards. We
look forward to reading about your plans. -Judy Faust Hartnett, Managing Editor
4 PLANSPONSOR.com August-September 2018
EDITOR-IN-CHIEF: Alison Cooke Mintzer
alison.mintzer@strategic-i.com
CREATIVE DIRECTOR: SooJin Chun Buzelli, svp
soojin.buzelli@strategic-i.com
MANAGING EDITOR: Judy Faust Hartnett
judy.hartnett@strategic-i.com
MANAGING EDITOR, PLANSPONSOR.com:
Rebecca Moore, rebecca.moore@strategic-i.com
EDITORIAL STAFF: Lee Barney, John Manganaro,
Amanda Umpierrez, Karen Wittwer
CONTRIBUTOR: John Keefe
SURVEYS & RESEARCH: Quinn Keeler,
Brian O'Keefe, Jackie Scott
DESIGN & PRODUCTION: Lynn Connelly, Chris Kwon,
Claire Merchlinsky, Tiffany Pai, Micky Walls
DESIGN CONTRIBUTORS: Alanna Jacobs,
Cherese Rambaldi
ART CONTRIBUTORS: Chris Buzelli, Joe Ciardiello,
Josh Cochran (cover), Sam D'Orazio, Davor
Gromilović, Jon Han, Eron Hare, Cleonique
Hilsaca, Meg Hunt, Matt Kalinowski, Jenice Kim,
Claudi Kessels, Claire Merchlinsky, Mark Todd,
Linda Yan
HEAD OF MEDIA SALES: Katie Bacon, vp
katie.bacon@strategic-i.com
ONLINE/DIGITAL PRODUCTS: Paul Zampitella, vp
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ADVERTISING SALES: Meighan McGowan,
Bill Murray, Lisa Reilly
GLOBAL SALES ADMINISTRATOR: Anthony Groccia
CONFERENCES: Carol Popkins, vp;
Katie Campbell, Rebecca Fahey, Melissa Groccia,
Lucille Velander
GLOBAL CONTROLLER: Younes Ismael-Aguirre
younes.ismael@strategic-i.com
ACCOUNTING OPERATIONS: Abeer Abu-Issa,
Mayrillane Bahi, Ruth Fissaha, Doreen Fucci,
Kristin Keeler, Ricky Kostik, Karen Kurtz,
Vivian Panton, Harris Weinstein
DEVELOPMENT DIRECTOR: Justin Hoffman
TECHNOLOGY OPERATIONS: Stephan Dennis,
Ray Lucibello, Aaron Montecalvo, Bhakti Patel,
Jigar Patel, Dexter Reaves, Stephen Widom
CUSTOM MEDIA PROGRAM MANAGER:
Drew Donaldson, drew.donaldson@strategic-i.com
REPRINTS: Michelle Judkins
203-595-3276 michelle.judkins@strategic-i.com
CORPORATE OFFICES: 1055 Washington Blvd.,
Stamford, CT 06901-2218; 203-595-3200
PLANSPONSOR (ISSN 1077-1816) is published
six times per year by Strategic Insight. Periodicals
postage paid at Stamford, CT, and at additional
mailing offices.
PLANSPONSOR is a Strategic Insight business.
CHIEF EXECUTIVE OFFICER: Joel Mandel baum
CHIEF FINANCIAL OFFICER: Karl Jaeger
CHIEF CONTENT OFFICER: Tony White
POSTMASTER: Send address changes to:
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Stamford, CT 06901
REPRODUCTION POLICY
PLANSPONSOR, Vol. 26, Number 3. No part of
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PLANSPONSOR - August/September 2018

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