Tuesday, December 16, 2008

News You Can Use: Retirement plan sponsors consider new strategies

In response to the recession, employers are considering changes to their retirement plan strategies, according to a new Mercer survey, "Leading Through Unprecedented Times."

Among the possible shifts, 17% of retirement plan sponsors are considering doing suspending their 401(k) match, 77% plan to review investment and administrative fees, 85% will likely enhance employee education and communication and 75% will revisit fund lineups.

On the defined benefit side, 46% of respondents plan to change investment strategies to reduce risk, although 31% expect to change their funding policies and 24% may reduce or halt accruals.

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