Leveraging PPA To Manage Defined Contribution Plan Risk
Source: Hewitt Associates
Opportunities offered by the Pension Protection Act of 2006 (P PA) are now available to support plan sponsors in their management of risks associated with their defined contribution programs. This paper describes the risks created by plan sponsors if they fail to actively manage their programs given the increasing importance of defined contribution plans in providing retirement income to Americans. It suggests specific steps plan sponsors can follow to ensure alignment of plan design and business goals optimize results for employees and take advantage of the opportunities offered by PPA.