Governance, Retirement Plan Design, Administration

A complex environment, complex challenges

Do these problems sound familiar?

Desire to offer benefits that are not just competitive but differentiating in an ever-evolving space that includes short term (debt management, budgeting, savings) and long-term (retirement) financial needs.
On-going focus on managing risk to the organization while plaintiffs’ attorneys continue to mine for new lawsuits around fees, funds, and managed account.
Limited time and resources to deliver and monitor a complex array of administrative processes.

As a plan sponsor, you also must contend with a multi-generational workforce today. Your baby boomers have different needs than millennials and Gen X. Yet every baby boomer is not equally prepared for retirement, nor is every millennial challenged by the same financial obstacles. Most employees have a commitment to today’s career, but not today’s employer. And many simply don’t have the tools or resources to make the most of their income today or their savings in retirement.

So what if you could position your defined contribution plan to deliver more — more for your employees, and more for your organization through an enhanced design and delivery model that may improve your employees' retirement incomes and optimize your outcomes?

Build your plan on a strong foundation of governance

The governance of DC plans is complex and regulatory requirements have made plan oversight challenging. Employing best practices for holistic plan management can help. Well-run programs encompass ongoing monitoring that covers a broad spectrum of services, from advisory to fully delegated solutions and may include:

Investment guidelines and performance monitoring

Vendor benchmarking and oversight

Audit and compliance support

Timely manager appointment and fund transitions

Sound plan design focused on participant success

As a plan sponsor, you must address the needs of both the organization and your employees. An optimal plan design accomplishes both –—maximizing the employer spend to the benefit of the employees, particularly key segments of the workforce. This lens requires placing a priority on improving participant outcomes. Successful plan sponsors manage key levers that are within their influence to:

Improve participant engagement
Enhance savings behaviors
Mitigate leakage
Maximize account growth over time

What can you do now to uncover opportunities?:

Conduct a needs analysis

Consider conducting a needs analysis for your employees; establishing success metrics; increasing investment diversification; and exploring financial wellness solutions.

Evaluate on a regular basis

Evaluate your DC plan design on a regular basis to ensure it stays relevant for your employees. Gather insight into employee needs through sensing and data analytics.

Review these areas

Participant needs analysis
Investment option utilization
Retirement preparedness
Design modeling

Leverage financial wellness to inform your plan

A financial wellness program can help you boost productivity and actually improve the physical health of your employees. We use data analytics to gain deep insights into employee behaviors and can help you develop a sustainable approach to financial wellness that improves financial outcomes for your employees. We encourage you to use our preferred financial wellness partners, and have a plan customized for your needs. With our Financial Wellness Index and Mercer’s Financial Courage Index, your company has the tools you need to assess your employees’ current state of financial wellness, as well as their Financial Courage. These tools will help you develop a financial wellness program within your organization for maximum positive impact.