Target-date funds: Plan sponsor considerations

Jeff_MarzinskyA new Milliman Benefits Perspective article goes deeper into the details of target-date funds (TDFs) and considerations for plan sponsors, which we looked at in a previous blog entry.

Some of the issues addressed in the article:

  1. Growth in TDFs, especially in retirement plans, can in part be attributed to the qualified default investment alternatives (QDIAs) regulations released in 2006 and 2007.
  2. In 2008 and 2009, many TDFs decline in value significantly, even though they were close to or at their target dates.
  3. More on the “To versus Through” difference between funds.
  4. Some considerations for sponsors as they include TDFs in their plans: required disclosures, communications, and ongoing benchmarking.

You can find the article in the October edition of the Milliman Benefits Perspectives.

Leave a Reply