Callan's 2023 Defined Contribution Trends Survey: Legislation, Regulation, and Litigation Driving Change in DC Plans

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Mar 27, 2023, 10:31 ET

SAN FRANCISCO, March 27, 2023 /PRNewswire/ -- Callan, a leading institutional investment consulting firm, announced today the results of its 2023 Defined Contribution (DC) Trends Survey. Now in its 16^th year, the survey covers SECURE 2.0 (pre-passage) and diversity topics, along with the key tenets of DC plan management, governance, and financial wellness. The survey paints a detailed picture of the challenges and opportunities that are top of mind for DC plan sponsors.

"As our world continues to dramatically change, our DC survey has evolved to fit the rapidly shifting landscape facing DC plan sponsors," said Greg Ungerman, survey co-author and Callan's DC practice leader. "This year's survey shows how some of the traditional activities we see in DC plans slowed while others required greater urgency, likely due to the twin forces of the pandemic and increased litigation."

Key Takeaways:

Legislation, regulation, and litigation are the primary drivers for change in DC plans.
Competing priorities and strained internal resources rank as top challenges.
Plans are actively seeking to enhance their plan and support participants, but solutions and implementation may vary based on unique pain points and opportunities.
The pandemic had distinct impacts on DC plans, and plan sponsors are looking to implement learnings from the experience.

The survey, conducted in late 2022, provides a benchmark for sponsors to evaluate their plans compared to peers, as well as actionable information to help them improve their plans and outcomes for participants.

Survey respondents spanned a range of industries—the top were technology, government, and financial services. Of the 99 respondents, 81% offered a 401(k) plan, 27% a 457 plan, 16% a 401(a) plan, and 9% a 403(b) plan. Nearly three-quarters had more than $1 billion in plan assets. More than two-thirds were corporate organizations, followed by public (23%) and tax-exempt (9%) entities.

Find the summary blog post and survey here.

About Callan

Callan was founded as an employee-owned investment consulting firm in 1973. Ever since, we have empowered institutional clients with creative, customized investment solutions backed by proprietary research, exclusive data, and ongoing education. Today, Callan advises on more than $3 trillion in total fund sponsor assets, which makes it among the largest independently owned investment consulting firms in the U.S. Callan uses a client-focused consulting model to serve pension and defined contribution plan sponsors, endowments, foundations, independent investment advisers, investment managers, and other asset owners. Callan has six offices throughout the U.S. Learn more at callan.com.

Media Contact:
Elizabeth Anathan
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SOURCE Callan LLC