In the survey of 1,500 employers representing $440 billion in DC plan assets, 33% said they offered automatic enrollment in their DC plans, 33% offered automatic escalation, and about 20% offered automatic rebalancing.
Among employers offering a default investment option, 67% use lifecycle funds, the survey found. Also, 90% of employers considering adding or changing a default option are looking at lifecycle funds.
Seventy-two percent of employers surveyed have 15 or fewer investment options in their DC plans.
Only one-third of employers plan to change their fund lineups over the next two years. Of those, most plan to increase their options or introduce a lifecycle fund.
Also, while 74% of employers have a targeted employee participation rate of 80% to 100%, only half of them have achieved that goal.
The survey was conducted in June.
Jeff Nash is a reporter for Pensions & Investments, sister publication of Business Insurance.
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