PLANSPONSOR - June/July 2018 - 6

Industry Analysis
Spotlighting industry data from PLANSPONSOR's proprietary research
Do You
Document
Investment
Changes?
R
egular reviews of the plan investment
menu are part of a prudent
fiduciary process-which can also
include the drafting of an investment
policy statement (IPS) and formation of
an investment committee-although neither
are required.
We analyzed sponsor data from the
2017 Defined Contribution (DC) Survey,
looking at plans of various sizes, both
with and without an IPS and investment
committee, to see whether that criteria
translates to better documentation of
investment changes.
According to the data, plan size has
no impact on, for example, sponsor confidence
in documenting investment decisions.
The data by size simply show some
gaps-i.e., in the large and mega markets
for those with and without an IPS-but
no consistent trends. Overall, however,
sponsors of all sizes that have an IPS are
more likely (by 38%) to think they document
changes appropriately.
Further, there is a substantial correlation
between committee confidence
and the presence of an IPS. Eighty-nine
percent of plans with an investment
committee also have an IPS. The most
confidence is found among plans with
both (55%); the least confidence is found
among plans with neither (37%).
Having an IPS and/or an investment
committee appears to increase confidence
for plan administrators and create a betterprotected
plan. -Judy Faust Hartnett
6 PLANSPONSOR.com June-July 2018
Plan Sponsors That Think They Appropriately Document
Investment Changes
n Plans with IPS n Plans without IPS
63%
54%
39%
51%
37%
53%
42%
52%
38%
40%
52% 52%
OVERALL
MICRO
SMALL
MIDSIZE
LARGE
MEGA
Plans With Investment Committee That Thinks It Appropriately
Documents Investment Changes
n Plans with IPS n Plans without IPS
63%
55%
43%
55%
41%
54%
42%
52% 48%
41%
53% 53%
OVERALL
MICRO
SMALL
MIDSIZE
LARGE
MEGA
Plans Without an Investment Committee or Without One That Thinks It
Appropriately Documents Investment Changes
n Plans with IPS n Plans without IPS
80%
45%
37%
49%
42%
36%
13%
OVERALL
MICRO
SMALL
MIDSIZE
LARGE
42%
33%
0%
MEGA
50%
50%
Has Investment Committee
Has No Investment Committee
89%
Plans
with IPS
11%
Plans
without IPS
36%
Plans
with IPS
Source: 2017 PLANSPONSOR Defined Contribution Survey
64%
Plans
without IPS

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PLANSPONSOR - June/July 2018

Table of Contents for the Digital Edition of PLANSPONSOR - June/July 2018

Opportunities Knock
2018 Plan Administration Guide, Part 2
Narrowing It Down
ESG Comes to Light
Protection at All Costs
The Sum of All Sources
Upwardly Mobile
PLANSPONSOR - June/July 2018 - C1
PLANSPONSOR - June/July 2018 - FC1
PLANSPONSOR - June/July 2018 - FC2
PLANSPONSOR - June/July 2018 - C2
PLANSPONSOR - June/July 2018 - 1
PLANSPONSOR - June/July 2018 - 2
PLANSPONSOR - June/July 2018 - 3
PLANSPONSOR - June/July 2018 - 4
PLANSPONSOR - June/July 2018 - 5
PLANSPONSOR - June/July 2018 - 6
PLANSPONSOR - June/July 2018 - 7
PLANSPONSOR - June/July 2018 - 8
PLANSPONSOR - June/July 2018 - 9
PLANSPONSOR - June/July 2018 - 10
PLANSPONSOR - June/July 2018 - 11
PLANSPONSOR - June/July 2018 - 12
PLANSPONSOR - June/July 2018 - 13
PLANSPONSOR - June/July 2018 - 14
PLANSPONSOR - June/July 2018 - 15
PLANSPONSOR - June/July 2018 - 16
PLANSPONSOR - June/July 2018 - 17
PLANSPONSOR - June/July 2018 - Opportunities Knock
PLANSPONSOR - June/July 2018 - 19
PLANSPONSOR - June/July 2018 - 20
PLANSPONSOR - June/July 2018 - 21
PLANSPONSOR - June/July 2018 - 2018 Plan Administration Guide, Part 2
PLANSPONSOR - June/July 2018 - 23
PLANSPONSOR - June/July 2018 - 24
PLANSPONSOR - June/July 2018 - 25
PLANSPONSOR - June/July 2018 - 26
PLANSPONSOR - June/July 2018 - 27
PLANSPONSOR - June/July 2018 - 28
PLANSPONSOR - June/July 2018 - 29
PLANSPONSOR - June/July 2018 - 30
PLANSPONSOR - June/July 2018 - 31
PLANSPONSOR - June/July 2018 - 32
PLANSPONSOR - June/July 2018 - 33
PLANSPONSOR - June/July 2018 - 34
PLANSPONSOR - June/July 2018 - 35
PLANSPONSOR - June/July 2018 - 36
PLANSPONSOR - June/July 2018 - 37
PLANSPONSOR - June/July 2018 - 38
PLANSPONSOR - June/July 2018 - 39
PLANSPONSOR - June/July 2018 - 40
PLANSPONSOR - June/July 2018 - 41
PLANSPONSOR - June/July 2018 - Narrowing It Down
PLANSPONSOR - June/July 2018 - 43
PLANSPONSOR - June/July 2018 - 44
PLANSPONSOR - June/July 2018 - 45
PLANSPONSOR - June/July 2018 - ESG Comes to Light
PLANSPONSOR - June/July 2018 - 47
PLANSPONSOR - June/July 2018 - 48
PLANSPONSOR - June/July 2018 - 49
PLANSPONSOR - June/July 2018 - Protection at All Costs
PLANSPONSOR - June/July 2018 - 51
PLANSPONSOR - June/July 2018 - The Sum of All Sources
PLANSPONSOR - June/July 2018 - 53
PLANSPONSOR - June/July 2018 - Upwardly Mobile
PLANSPONSOR - June/July 2018 - 55
PLANSPONSOR - June/July 2018 - 56
PLANSPONSOR - June/July 2018 - C3
PLANSPONSOR - June/July 2018 - C4
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