Defined Contribution Solutions
As defined contribution plans have grown in size and importance, so has the need for plan sponsors to monitor and manage them. Some of this need is due to heightened regulatory scrutiny and pressure, but also the understanding that DC plans will form the majority of retirement savings for most people who use them.
What We Offer
River and Mercantile Solutions provides advice as both an ERISA 3(21) and ERISA 3(38) fiduciary. We also provide advice on record keepers, plan design, plan fees and regulations that can impact DC plan sponsors. We offer varying levels of service, from basic fiduciary cover and governance through to the investment management of participant default options.
Target Date Funds
Target date funds (TDFs) have become the default option of choice for the majority of plan sponsors and the assets managed in these products have grown rapidly. There is also now a wide range of target date providers and product types. However, many plan sponsors made their TDF selection several years ago and may not be aware of all the options that are available today. The selection of the default option is the single most important investment decision made by a sponsor, and this decision needs to be revisited periodically to ensure that it is still in the best interest of participants.If your TDF option meets one or more of the following criteria, then it may be prudent to take a closer look:
Are you using a TDF provided by your recordkeeper?
Does your TDF use only one asset manager?
Is your TDF equity exposure >50% at retirement?
River and Mercantile Solutions can help you evaluate whether your TDF meets the needs of your participants.
Download this article to learn more about Target Date Funds and the three major features common to most TDF’s structure.
We believe the needs of DC plan sponsors are evolving from using consultants simply to provide fiduciary cover around fees and the selection of the investment line-up to seeking real advice around how to fundamentally improve DC plans. This can take many forms, from finding better record keeping platforms through to complete redesigns of the investment line-up and trust structure. We believe that DC plans will look substantially different in 20 years, and we anticipate working with our clients to design these DC plans of the future.
Complimentary Plan Review
To receive your plan governance, fee, and investment review please contact us at firstname.lastname@example.org. We would be happy to provide our assessment of your plan’s status in these important areas.