Retirement Fund Survey Shows Surprising Result Pensions & Investments (10/01) Vol. 29, No. 21 p.4; Jacobius, Arleen
Mercer's 2001 Survey on Employee Savings Plans shows plan sponsors that offer both defined benefit and defined contribution plans fare better among employees than companies that offer only a defined contribution plan. The survey, which addresses the structure, administration, and investment decisions made by defined contribution plan sponsors, suggests this is so because plan sponsors that offer defined benefit and defined contribution plans pay more attention to the investment options in both plans than companies with only a defined contribution plan. What is more, the survey found that sponsors with both plans have a more generous defined contribution plan. Another fact the survey revealed is that the main reason for providing a savings plan is to allow employees to accumulate enough assets to maintain their standard of living in retirement. Of those surveyed, 47 percent of plan sponsors ranked standard of living first and 17 percent ranked it second.