April 17, 2012 (PLANSPONSOR.com) - Plan automation solutions
play a key role in the plan design process, according to a survey.
The second annual Retirement Plan Survey by Mesirow
Financial Retirement Plan Advisory found that 50% of plan sponsors surveyed
offer automatic enrollment features, and one-third include a step-by-step
deferral rate option.
to the survey, plan sponsors are hopeful that positive strides continue in
educating participants on the merits of participating in their retirement
plans. The lack of participant understanding and appreciation of the retirement
plan benefit is a major concern, yet satisfaction levels seem positive. In many
circumstances, the provider community has offered multiple options in trying to
meet the educational requirements and needs of both the plan sponsor and
asked how they would characterize overall participant satisfaction with
different planning tools and, options available through the participant website
materials and meetings to help reach saving goals, 14.4% of respondents said
they were very satisfied; 75.6% were satisfied; 5.6% were not satisfied; and
4.4% do not use these options.
the finalization of the Pension Protection Act, target-date funds (TDFs) have
grown exponentially both in usage and in assets. The trend continues in Mesirow’s
latest findings as plan sponsors use TDFs for double duty as a plan’s QDIA and
also as a managed account strategy. The majority (72.4%) of respondents do
offer TDFs, while 27.6% responded they do not.