DCIIA Retirement Research Center Publishes Two New Reports on Custom Target Date Funds and Automatic Features
WASHINGTON, May 26, 2020 (Newswire.com) - The Defined Contribution Institutional Investment Association (DCIIA) Retirement Research Center (RRC) announced today the recent publication of two new reports that provide updated and expanded data on custom target date funds (cTDFs) and automatic features in defined contribution (DC) plans. Both reports, and prior iterations, are freely available in DCIIA’s online Resource Library.
Custom Target Date Fund Survey – This year’s cTDF study is an updated report based on last year’s inaugural survey, which provided a previously unavailable overview of cTDFs. Included in the report are data and commentary on glide paths, performance, and allocations within vintages and by asset class (equity, fixed income, inflation-sensitive, and diversifiers).
In this second iteration of the DCIIA cTDF study, substantially more data has been added:
- 14 asset allocators reporting data for year-end (YE) 2018, versus 9 for YE 2017
- 91 plans reported, versus 65 in YE 2017
- 958 unique funds reported, versus 673 in YE 2017
- Annual vintage performance collected for both 2017 and 2018.
Plan Sponsor Survey: Implementation of Auto Features Continues to Rise as Plans Recognize Benefits – DCIIA’s 10th anniversary this year coincides with the fifth edition of this plan sponsor survey, which was first fielded in 2010 with 101 defined contribution (DC) plan sponsors. This year’s survey represents the views of 175 plan sponsors. Key findings include:
- Auto enrollment saw growth in adoption, to 69% in 2019, up from 60% in 2016. However, future adoption of auto enrollment may slow.
- Presently, 69% of plans offer auto escalation, up from 50% from our prior survey. Auto escalation may also be reaching its maximum adoption level.
- Adoption of QDIA re-enrollment remains limited. This year's survey reports a modest increase, with 24% reporting having ever done a QDIA re-enrollment, up from 18% in the prior survey.
“We are pleased to conduct and share research that can help to inform industry discussions around defined contribution retirement plan design and administration,” said Warren Cormier, executive director of the DCIIA RRC. “Even as we collectively remain focused on near-term issues related to the global pandemic, we must remember to take a long-term view and encourage plan participants to do so as well. We hope that this research supports plan sponsors’ longer-term discussions around the goal of improving retirement outcomes for America’s workers.”
About DCIIA
Founded in 2010, the Defined Contribution Institutional Investment Association (DCIIA) is a non-profit association dedicated to enhancing the retirement security of America’s workers. DCIIA’s diverse group of members includes investment managers, consultants and advisors, law firms, record keepers, insurance companies, plan sponsors, and other thought leaders who are collectively committed to the best interests of plan participants. For more information, visit www.dciia.org.
Contact: Karen Witham, DCIIA, mediarelations@dciia.org or 202-367-1124
Source: DCIIA
