PLANSPONSOR - March - April 2023 - 23

30TH ANNIVERSARY | PARTICIPANTS
to help. We can be even more [useful] if we can help them figure
out the next best step they can take for a positive outcome,
whether that's increasing their contribution to get a match or
making sure they have emergency savings. "
The past three decades have also seen a shift in the way both
plan sponsors and employees think about their workplace retirement
plans: At first considered an auxiliary benefit, DC plans are
now a core part of the compensation package. In 2010, just onequarter
of employee respondents cited retirement benefits as a
reason to join a company, and 41% said it was a reason to stay.
By 2022, those numbers had increased to 47% and 60%, respectively,
according to WTW.
The provision for automatic enrollment and qualified
default investment alternatives by the Pension Protection Act of
2006 meant that even participants who wanted to be less handson
have also largely made progress toward a more secure retirement.
Since the PPA passed, the share of companies using autoenrollment
has more than tripled, says The Vanguard Group's
" How America Saves 2022. "
" The concept of automatic enrollment and default investments
has been fairly seismic in terms of how people think
about their responsibility for their own retirement and the world
in which defined benefit [plans] are not happening for you, "
Vaillancourt says. " They can still choose whether to participate
or not, but it really provides a vehicle for them to get into the
retirement plan and get those big behaviors under their belt. "
One unintended consequence of the PPA was that many plan
sponsors anchored their savings rate at 3%, but, in the decades
since, both sponsors and participants have come to recognize
that such a rate may not provide enough retirement security,
Vaillancourt says. Both parties have gotten more comfortable
with a higher automatic enrollment rate, she says.
'Meet Participants Where They Are'
Meanwhile, the trend toward customization, especially in recent
years, has also led to plan sponsors and retirement providers
looking to " meet participants where they are, " Abend says.
" That goes to things like hardship withdrawals, " she notes.
" They've always been allowed, but, in the last few years, with
natural disasters and COVID-19, Congress stepped up and
eased access to hardships [with the Coronavirus Aid, Relief and
Economic Security Act]. And there are provisions in SECURE
[Setting Every Community Up for Retirement Enhancement] 2.0
that address things like student loans and emergency savings. "
Jagatic cites the way the industry talks to participants about
hardship withdrawals as an example of increasing empathy and
awareness of participant challenges. A decade ago, the overwhelming
perspective was simply that participants should avoid
such withdrawals whenever possible.
" While that's true-and, ideally, people don't have to
make hardship withdrawals-as we think more broadly about
1993
Source: Department of Labor
2020
WHEN 'LATER'
MAY MEAN 'NEVER'
For workers in a field with short employee tenures,
a long, graded vesting schedule could seem unfair.
66.2%
2005
24.9%
2005
34.5%
2022
Source: PLANSPONSOR Defined Contribution surveys, 2005 and 2022
Immediately
3 or more years
THE DB TO DC SHIFT
Employers like the lower cost, easier operation-
and portability when participants leave.
12%
DB plans (12mm)
+51.56%
88%
DC plans
(85mm)
39%
DB plans
(25mm)
61%
DC plans
(39mm)
53.4%
2022
PLANSPONSOR.COM March - April 2023 23
64 million
total workplace retirement plans
97 million
total workplace retirement plans
http://www.PLANSPONSOR.COM

PLANSPONSOR - March - April 2023

Table of Contents for the Digital Edition of PLANSPONSOR - March - April 2023

INSIGHTS
PARTICIPANT ANALYSIS
RULES & REGULATIONS
UPFRONT
PLAN DESIGN
PARTICIPANTS
INVESTMENTS
PLAN ACCESS
GOVERNANCE
FIDUCIARY FORUM
INSIDE ANGLE
PLAN PROFILE
PLANSPONSOR - March - April 2023 - Cover1
PLANSPONSOR - March - April 2023 - Cover2
PLANSPONSOR - March - April 2023 - 1
PLANSPONSOR - March - April 2023 - INSIGHTS
PLANSPONSOR - March - April 2023 - 3
PLANSPONSOR - March - April 2023 - PARTICIPANT ANALYSIS
PLANSPONSOR - March - April 2023 - 5
PLANSPONSOR - March - April 2023 - RULES & REGULATIONS
PLANSPONSOR - March - April 2023 - 7
PLANSPONSOR - March - April 2023 - UPFRONT
PLANSPONSOR - March - April 2023 - 9
PLANSPONSOR - March - April 2023 - 10
PLANSPONSOR - March - April 2023 - 11
PLANSPONSOR - March - April 2023 - 12
PLANSPONSOR - March - April 2023 - 13
PLANSPONSOR - March - April 2023 - PLAN DESIGN
PLANSPONSOR - March - April 2023 - 15
PLANSPONSOR - March - April 2023 - 16
PLANSPONSOR - March - April 2023 - 17
PLANSPONSOR - March - April 2023 - 18
PLANSPONSOR - March - April 2023 - 19
PLANSPONSOR - March - April 2023 - PARTICIPANTS
PLANSPONSOR - March - April 2023 - 21
PLANSPONSOR - March - April 2023 - 22
PLANSPONSOR - March - April 2023 - 23
PLANSPONSOR - March - April 2023 - 24
PLANSPONSOR - March - April 2023 - 25
PLANSPONSOR - March - April 2023 - INVESTMENTS
PLANSPONSOR - March - April 2023 - 27
PLANSPONSOR - March - April 2023 - 28
PLANSPONSOR - March - April 2023 - 29
PLANSPONSOR - March - April 2023 - PLAN ACCESS
PLANSPONSOR - March - April 2023 - 31
PLANSPONSOR - March - April 2023 - 32
PLANSPONSOR - March - April 2023 - 33
PLANSPONSOR - March - April 2023 - GOVERNANCE
PLANSPONSOR - March - April 2023 - 35
PLANSPONSOR - March - April 2023 - 36
PLANSPONSOR - March - April 2023 - 37
PLANSPONSOR - March - April 2023 - FIDUCIARY FORUM
PLANSPONSOR - March - April 2023 - INSIDE ANGLE
PLANSPONSOR - March - April 2023 - PLAN PROFILE
PLANSPONSOR - March - April 2023 - Cover3
PLANSPONSOR - March - April 2023 - Cover4
https://www.plansponsordigital.com/plansponsor/may_june_2024
https://www.plansponsordigital.com/plansponsor/march_april_2024
https://www.plansponsordigital.com/plansponsor/january_february_2024
https://www.plansponsordigital.com/plansponsor/november_december_2023
https://www.plansponsordigital.com/plansponsor/september_october_2023
https://www.plansponsordigital.com/plansponsor/july_august_2023
https://www.plansponsordigital.com/plansponsor/excellenceawards_2023
https://www.plansponsordigital.com/plansponsor/may_june_2023
https://www.plansponsordigital.com/plansponsor/march_april_2023
https://www.plansponsordigital.com/plansponsor/december_2022_february_2023
https://www.plansponsordigital.com/plansponsor/october_november_2022
https://www.plansponsordigital.com/plansponsor/august_september_2022
https://www.plansponsordigital.com/plansponsor/june_july_2022
https://www.plansponsordigital.com/plansponsor/excellenceawards_2022
https://www.plansponsordigital.com/plansponsor/april_may_2022
https://www.plansponsordigital.com/plansponsor/february_march_2022
https://www.plansponsordigital.com/plansponsor/december_2021_january_2022
https://www.plansponsordigital.com/plansponsor/october_november_2021
https://www.plansponsordigital.com/plansponsor/august_september_2021
https://www.plansponsordigital.com/plansponsor/june_july_2021
https://www.plansponsordigital.com/plansponsor/april-may_2021
https://www.plansponsordigital.com/plansponsor/february-march_2021
https://www.plansponsordigital.com/plansponsor/december-january_2021
https://www.plansponsordigital.com/plansponsor/october-november_2020
https://www.plansponsordigital.com/plansponsor/august-september_2020
https://www.plansponsordigital.com/plansponsor/june-july_2020
https://www.plansponsordigital.com/plansponsor/april-may_2020
https://www.plansponsordigital.com/plansponsor/february-march_2020
https://www.plansponsordigital.com/plansponsor/december-january_2020
https://www.plansponsordigital.com/plansponsor/october-november_2019
https://www.plansponsordigital.com/plansponsor/august-september_2019
https://www.plansponsordigital.com/plansponsor/june-july_2019
https://www.plansponsordigital.com/plansponsor/april-may_2019
https://www.plansponsordigital.com/plansponsor/february-march_2019
https://www.plansponsordigital.com/plansponsor/december_2018-january_2019
https://www.plansponsordigital.com/plansponsor/october-november_2018
https://www.plansponsordigital.com/plansponsor/august-september_2018
https://www.plansponsordigital.com/plansponsor/june-july_2018
https://www.plansponsordigital.com/plansponsor/april-may_2018
https://www.plansponsordigital.com/plansponsor/february-march_2018
https://www.plansponsordigital.com/plansponsor/december_2017-january_2018
https://www.plansponsordigital.com/plansponsor/november_december_2017
https://www.plansponsordigital.com/plansponsor/october_2017
https://www.plansponsordigital.com/plansponsor/september_2017
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