PLANSPONSOR - February/March 2018 - 4

Survey Says
Most
Effective
Industry
Changes
O
n the eve of PLANSPONSOR's
25th anniversary, we asked
NewsDash readers, " Which
retirement industry development over the
past 25 years has been the most effective
for improving retirement outcomes, and
which has been the least effective? "
At 48.9%, the No. 1 pick for improving
outcomes was the adoption of automatic
enrollment for defined contribution
(DC) plans. Next were retirement plans'
increasing move to daily-from monthly,
quarterly or annual-valuation and the
focus on financial wellness education;
each was chosen by 10.6% of respondents.
" Introduction of Roth retirement
plan deferrals " was selected by 8.5% of
responding readers; 4.3% chose " increase
in availability of calculators for savings
and retirement income " ; and 2.1%
chose, respectively, " increased adoption
of cash balance plans " and " Supreme
Court Dudenhoeffer decision taking away
presumption of prudence for company
stock in DC [defined contribution] plans. "
For developments that have been
least effective, the top choice was the
increase in the move from defined benefit
(DB) plans to defined contribution plans
(45.6%), followed by increase in pension
transfers to insurance companies (17.4%)
and increased focus on retirement income
options by regulators (10.9%).
Other " least effective " choices were
" increase in the number of funds on retirement
plan investment menus, " selected by
8.7% of respondents; " implementation of
qualified default investment alternatives
(QDIAs) for DC plans, " chosen by 4.3%;
and " introduction of Roth retirement plan
deferrals, " " adoption of automatic enrollment
..., " " increased adoption of cash
balance plans, " " new regulations for 403(b)
plans, " " Supreme Court Dudenhoeffer decision
... " and " increase in availability of
calculators ..., " each selected by 2.2% of
respondents.
More than half of responding readers
(56.5%) work in a plan sponsor role; more
than one-quarter (28.3%) are third-party
administrators (TPAs)/recordkeepers/
investment managers; and 15.2% are
advisers/consultants.
As always, all verbatim responses
reflect the opinions of individual readers
and not the stance of PLANSPONSOR or
its affiliates at Strategic Insight.
" While automatic enrollment has
increased plan participation, it doesn't go far
enough. Default rates need to be higher, and
there need to be changes made to the loan
and withdrawal provisions of plans. "
" Happy Birthday! I have been a
subscriber for about 15 of those 25 years, and
4 PLANSPONSOR.com February-March 2018 Art by Seong Eun Macfarlane
you all continue to keep me informed. "
" There was an article in the Wall Street
Journal about the man who started the
401(k) movement and how he now regrets
doing so because of that being a large factor
in the demise of DB plans and most workers'
retirement security. "
" With today's race to the bottom on
fees and services, no one is asking people
directly to save and providing one-on-one
education. Now, it is all self-serve, and most
people aren't stepping up to the buffet, or
only nibbling if they do. "
" The Roth has been the greatest development
in 25 years. Wish I had had that
when I was starting out. "
" The NewsDash is the finest daily
update I receive, the one thing I start every
day with. Kudos on 25 years! "
" As someone on the cusp of retirement,
I am happy to see focus shifting to drawing
down of savings and annuity options in
DC plans. Late for me, but good for those
following me. " -Rebecca Moore
You can participate by subscribing to
NewsDash at plansponsor.com/subscribe.
http://www.plansponsor.com/subscribe http://www.PLANSPONSOR.com
PLANSPONSOR - February/March 2018

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