Last week, Fidelity posted their survey results regarding how retirement plans fared in 2008. Now in the spirit of continuality, Callan Associates released their survey on what to expect in 2009. Fred Schneyer of Planadviser.com analyzed the Callan report and found some interesting findings.
One of the most interesting themes of the report is that plan sponsors are planning to be more pro-active in 2009. Schneyer states that about 67% intend to provide more education and communication in 2009:
“95% will increase investment communication.
71% will increase communication around participation.
64% will increase communication about retirement income adequacy.”
Another area of interest for plan sponsors is fund and manager performance. According to the article, 39% made fund changes in 2008 and 44% are expecting to replace a fund for “performance related reasons” in 2009. To increase due-diligence, 76% of sponsors anticipate increasing the number of investment committee meetings. It seems that the volatility of 2008 provided awareness for plan sponsors regarding the importance of fund monitoring.
Lastly, the report presents a somber note that sponsors will also cut back on plan features. 1% of plans state that they will decrease the employer match while “20% of respondents were unsure what steps they might take by the end of 2009”. Also, “few plan sponsors expect to add a Roth contribution, investment advice, automatic enrollment, or contribution escalation to their plans”.
Overall, the Callan Associates survey paints a very active picture of what plan sponsors except to do regarding their retirement plans; they will inform, educate, and monitor their defined contribution plan without over-exerting their capabilities by adding more features.
For more information, please read Fred Schneyer’s article:
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