White paper on best practices for implementing automatic features in defined contribution plans. Automatic enrollment and escalation significantly improve participation and savings outcomes, while emphasizing the importance of higher default contribution rates, thoughtful plan design, and employer strategies to overcome inertia and drive stronger retirement readiness.

DCIIA believes that DC plan sponsors should consider adding an investment offering that provides better risk balance, in an attempt to enhance returns and to reduce the volatility that the typical plan participant experiences. One solution is to provide access to an asset category broadly referred to as “alternatives.”

This paper seeks to provide a framework for designing DC menus to improve plan participant experiences and outcomes. We review how menu design has evolved historically, discuss the objectives and philosophies of various sponsors, define menu construction frameworks, and present considerations for creating an effective investment menu.

DCIIA provides a framework to help identify and suggest practical approaches for addressing the challenges of new reporting and disclosure requirements, particularly as they apply to non-registered investment funds and custom investment solutions that are offered in many 401(k) plans.

Action Needed to Drive Better Participant Outcomes

While many DCIIA member firms hold definite views about the most appropriate way to construct a target date asset allocation and glide path, in this paper we have worked collectively to create an objective and balanced presentation of the factors to be considered in selecting or building target date portfolios.

This Research Report expands upon earlier work by EBRI to provide the first results of a new simulation model that estimates the impact of changing 401(k) plan design variables and assumptions on retirement income adequacy.

DCIIA shows strong evidence that by adjusting the implementation of automatic features and influencing certain employee actions, plan sponsors can materially improve retirement outcomes for all employees. The paper uses simulation results from the EBRI Retirement Security Projection Model®.

A DCIIA report on institutionalizing defined contribution plans that explores how adopting institutional investment strategies, governance structures, and plan design improvements can enhance retirement outcomes, reduce fees, improve transparency, and increase income adequacy, while outlining practical steps, benefits, and barriers plan sponsors face in implementing these changes.