Twenty percent of retirement plans don't have a default investment, according to a survey of more than 1,000 defined contribution plan sponsors.
If that's not shocking enough, the smallest plans are nearly twice as likely (37 percent) as respondents as a whole to lack one. Among the largest plans, just 13 percent do not have a default investment.
All of this is according to a survey from AB Global, which also found that about half of its survey respondents don't have a qualified default investment alternative (QDIA), despite the fact that QDIAs provide a "safe harbor" for plan sponsors under the Employee Retirement Income Security Act.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
