Mercer DC Fiduciary FrameWork: Helping responsible fiduciaries manage effectively

July 2010

When did managing defined contribution (DC) retirement plans become so challenging? Originally intended as supplemental savings vehicles to complement well-funded defined benefit plans, DC plans have become the ongoing and primary employer-sponsored retirement plan for most Americans. Along with participants’ need for strong performance have come increased regulatory activity, governance requirements and
fiduciary concerns.

'10 for 2010': New Year's resolutions defined contribution plan sponsors should make now

January 2010

The improvements in capital markets from the lows in early 2009 provide DC retirement plan sponsors with reason for some optimism as they enter 2010. Many issues that arose during the crisis, however, continue to cause concern among participants, sponsors, regulators and the media; these issues range from target date fund glide paths to administration and investment fees.

2 September 2009

Target date lifecycle funds were conceived as a single-investment solution for less sophisticated members of participant-directed retirement programs such as 401(k), 403(b) and 457 plans.

Find out more about target date funds

 UPDATE: Suspending the 401(k) match: Look before your leap  

April 2009

The US has entered into what may be a prolonged recession, and as a result, many organizations are looking for ways to preserve cash, including suspending or reducing contributions to 401(k) and other defined contribution (DC) plans. While suspending matching or nonelective contributions provides a relatively easy and immediate source of expense reduction, it's important to understand both the implications and the potential pitfalls of taking this action.

Go to DC Quick Survey Results - May 2009 relating to this update 

UPDATE: Turbulent financial markets: Impact on DC plans

The current financial market turmoil has important implications for defined contribution (DC) programs. Plan sponsors and fiduciaries should quickly determine whether action is needed in response to these extraordinary conditions, or if maintaining the present course might be more prudent. Plan sponsors should also consider whether drafting a communication to participants, to address concerns and reinforce key messages, is needed. 

Defined contribution plan fee disclosure

30 September 2008

New regulations proposed by the Department of Labor (DOL) would require comprehensive disclosures to 401(k) and other defined contribution (DC) plan participants regarding administrative and investment-related fees. The new guidance, issued July 23, 2008, is the last of three DOL initiatives on DC plan fee disclosures.

31 May 2008

Fiduciaries looking to minimize their liability for default investment decisions in participant-directed retirement plans have raised a number of questions about last year’s final regulations from the Department of Labor (DOL). In response, on April 29, the DOL issued two sets of additional guidance on “qualified default investment alternatives” or QDIAs. Mercer is working closely with clients to ensure they have a clear understanding of the new guidance and the implications for plan design, operation and fiduciary risk management.