71% of Workers Are in DC Plans. So What Three Things Will Help the Most?

Today, some 71% of Americans in private sectors are enrolled in defined contribution (DC) retirement plants into which they contribute money and perhaps get an employer match.1 That’s a big switch from what people were used to 20 years ago, when many workers received a pension through a defined benefit (DB) plan.

For DC plan sponsors, the world is changing as well. Sponsors are moving away from filling lineups with name-brand, single-manager funds and towards a more institutional approach: white label funds, open architecture, multimanager. Since many plan sponsors don’t have the time, resources, scale or expertise to do that efficiently, they look for outsourcing partners to help with implementation. Sponsors also are looking for support in selecting and monitoring vendors, such as record keeper’s support in delivering participant communications.

With all that, it may be that the HR department or whoever manages the DC plan is feeling a little overwhelmed. It could be that since the company switched from a DB to a DC plan some of that institutional knowledge about managing pension plans has gone away. Or, it could be that time and resources are simply in short supply.

Here at Russell Investments we make it our business to understand the needs of both individual investors and DC plan sponsors. Check out this article to see the three considerations that can help DC plans get it right for themselves and their participants.

1 “Employment-Based Retirement Plan Participation: Geographic Differences and Trends, 2013,” EBRI, 2013.


The information, analyses and opinions set forth herein are intended to serve as general information onlyand should not be relied upon by any individual or entity as advice or recommendations specific to thatindividual entity. Anyone using this material should consult with their own attorney, accountant, financial ortax adviser or consultants on whom they rely for investment advice specific to their own circumstances.

This material is not an offer, solicitation or recommendation to purchase any security.

Please remember that all investments carry some level of risk, including the potential loss of principalinvested.

This material is proprietary and may not be reproduced, transferred, or distributed in any form without priorwritten permission from Russell Investments. It is delivered on an "as is" basis without warranty.

Russell Investments' ownership is composed of a majority stake held by funds managed by TA Associates with minority stakes held by funds managed by Reverence Capital Partners and Russell Investments' management.

Frank Russell Company is the owner of the Russell trademarks contained in this material and all trademark rights related to the Russell trademarks, which the members of the Russell Investments group of companies are permitted to use under license from Frank Russell Company. The members of the Russell Investments group of companies are not affiliated in any manner with Frank Russell Company or any entity operating under the "FTSE RUSSELL" brand.

Copyright © Russell Investments 2016