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Data and Research April 27, 2015
Many Sponsors Unaware of Fiduciary Responsibilities
These sponsors tend to be less involved with their retirement plans.
Reported by Lee Barney
In the past three years, there has been a decline in
retirement plan sponsors’ awareness of their fiduciary responsibilities,
according to research from AllianceBernstein. More than one-third (37%) of
sponsors aren’t aware that they are fiduciaries, up from 30% in 2011.
“There’s a clear correlation between a lack of fiduciary awareness and plan
sponsors that are less concerned with increasing employee engagement and
protection in retirement plans,” says Dick Davies, senior managing director of
AB’s defined contribution business and co-head of North American
Institutions.
The survey also found that the use of target-date funds (TDFs) is rising, and
those sponsors that use target-date funds take fiduciary concerns more
seriously; 87% of sponsors with TDFs said fiduciary concerns were important or
very important.
“What’s comforting is that the adoption of target-date funds is rising, and
plan sponsors and participants alike want more innovative products that are
changing the retirement outcomes for plan participants,” Davies says. “These
include guaranteed income TDFs, multi-manager funds and other customization
options available in the DC marketplace.”