New York (3/9/15) — Given the magnitude of many organizations’ investment in their defined contribution (DC) plans, it is surprising how little attention is paid to the overall objectives and applying measurable criteria for assessing the success of these programs. According to Sibson Consulting Defined Contribution Practice Director Pirie McIndoe, “The primary value of identifying success metrics for a DC plan lies in being able to prove, and possibly improve, the return on the organization’s investment. Additionally, having an ongoing process that includes a rigorous analysis of all aspects of the plan can help ensure thoughtful decisions.”
The latest edition of Spotlight from Sibson Consulting and Segal Rogerscasey presents both common measures and other, less well-known contributing factors of DC plan success. It then describes a systematic approach to measuring a plan’s effectiveness and determining how to make ongoing improvements. Aspects of DC plan success include the retirement readiness of plan participants, fiduciary governance, plan design, ongoing administration and compliance and a communication plan for employees.
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Sibson Consulting (www.sibson.com), a member of The Segal Group, provides strategic human resources solutions to corporate and non-profit employers and professional service firms. Sibson's services include benefits, compensation, talent and performance management, communications, sales force effectiveness and change management. In 2014, The Segal Group is celebrating the 75th anniversary of its founding by Martin E. Segal.