New funding rules for pensions and increased scrutiny of retirement plan operations are forcing companies to take more active roles in administering their retirement plans in 2008, according to a survey of 190 medium and large U.S. companies by Hewitt Associates, a global human resources services company.
Among companies that offer retirement plans, 63% said they were very likely to perform funding and accounting projections; 30% plan to perform an asset liability study; and 29% are very likely to assess the risks to their pension plans based on current strategies. Stressing employee accountability is expected to be a high priority of 56% of employers, while 50% said they would focus on helping employees better understand their retirement benefits.
Employers are also making greater use of automated features in 401(k) plans�44% offer automatic enrollment compared with 36% in 2007. Of those companies that offer automatic enrollment, 72% plan to convert their default investment fund to a premixed portfolio fund, including target-date funds.
Source: Hewitt Associates, www.hewitt.com .<% server.execute /pubs/jofa/includes/footer.htm %>