Mercer creates 10-point list for DC sponsors

Edited by the Employeebenefitstalk editorial team Jan 25, 2010

Mercer has compiled a '10 for 2010' checklist of New Year resolutions that plan sponsors and governors of defined contribution (DC) plans should make.

The improvements in investment markets from the lows seen in 2009 provide DC pension-plan sponsors, trustees and governance committees with reason for some optimism.

However it is essential that sponsors, trustees and governance committees use the lessons learnt during the crisis to improve plans and mitigate the impact of future downturns.

Mercer's '10 for 2010' New Year resolutions for DC plan sponsors are: set or review plan objectives; review existing DC structures; review the default investment option; confirm that all investment funds in the line-up are appropriate; communicate the plan's fund options as a two- or three-tiered structure to increase member understanding; take steps to improve member contributions; consider plan design for moderate and high earners; review the security of pension providers; improve DC governance practices; and prepare for Personal Accounts.