2012 Hot Topics in Retirement - Aon

Managing Risk and Plan Expenses Over the past few years, companies have been taking actions to manage risk
and plan expenses in their defined contribution plans, and 2012 appears
to be no exception. Six out of 10 respondents are likely to benchmark plan
administration and procedures to best practices. An almost equal number
(55%) are planning to review their plan governance structure, and more than
half of all respondents (53%) indicated that they have already hired a third
party to monitor or review their fund options.
Managing Risk in Defined Contribution Plans
Completed
Recently/
Not Needed Actions Related to Funds
53%
34%
28%
25%
22%
21%
20%
13%
(n ranges from 349 to 352)
Hire a third party to monitor or
review funds
Review plan governance structure
Benchmark plan administration and
procedures to best practices
O�er professional investment help
or management
Perform a compliance review
Increase the frequency or intensity
of fund monitoring
Increase the frequency and/or
intensity of the review of total plan
cost
Outsource fiduciary responsibility to
a third party
In 2012, DC-only plan sponsors are far more likely to be focused on plan
administration benchmarks (70% vs. 59% of sponsors o�ering both DC and
DB plans), compliance review (68% vs. 46% of sponsors o�ering both DC
and DB plans), and plan governance (63% vs. 52% of sponsors o�ering both
DC and DB plans).
Likely Actions in 2012 to Manage Risk in Defined Contribution
Plan Among Those Plans That Did Not Recently Complete
Very
Likely
12%
24%
24%
5%
23%
6%
17%
2%
Somewhat
Likely
14%
31%
36%
12%
28%
18%
29%
3%
Somewhat
Unlikely
22%
20%
22%
27%
26%
27%
25%
22%
Very
Unlikely
52%
25%
17%
56%
24%
49%
30%
73%
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