New data shows that sponsors of defined contribution plans are driven by member retirement goals and managing litigation risk when considering scheme directions, reports Benefits Canada.
The research by global investment manager PIMCO reveals that 29 per cent of respondents consider retirement goals when making plan decisions, while 25 per cent factor in litigation risk.
“In terms of fee payment, more than half of respondents recommend a flat dollar charge per participant for all plan sizes, while nearly a third recommend the employer pays out of pocket. Fewer than 10 per cent would reduce the contribution match to allow the employer to pay fees. And nearly three-quarters would not charge fees pro rata across plan assets, regardless of the size of the plan,” reports Benefits Canada.
More: managing the risk.

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