Defined Contribution in Review

Industry developments over the last 90 days


Quarterly Highlights
A summary of plans and sponsors making the news

Quarterly Highlights

A summary of plans and sponsors making the news

Tax Cuts Lead to Larger 401(k) Employer Contributions

Following the Tax Cuts and Jobs Act, a number of companies have announced plans to increase their plans’ retirement contributions including Cigna, Visa, Honeywell and Aflac. The interest in larger contributions has not been limited to large plans as Peoples Bancorp increased its 401(k) match from 7% to 8% in its $30.5M plan, and Advance Financial, a Nashville, Tennessee-based provider of open line-of-credit loans and other financial services, announced that it would increase its 401(k) match from 3% on a dollar-for-dollar basis to 5% in its $2.3M plan.
Trends in 401(k) Plans

Learn about additional trends in the 1Q18 edition of the 

Using Defined
Benefits Managers

The Hearst Corporation redesigned their 401(k) investment menu to leverage managers already being used in the company’s $2.1B Defined Benefit Plan.

Incorporating Environmental, Social and Governance (ESG) Factors

Bloomberg L.P. became the first U.S.-domiciled corporate retirement plan sponsor to join the PRI (Principles for Responsible Investment) which encourages its international network of investor signatories to incorporate ESG factors into their investment and ownership decisions.


The fiduciary committee for Teradyne recently decided to hire an outside consultant to act as a 3(38) discretionary manager overseeing the 401(k) investments and 3(21) adviser for setting the fund menu.


Company Stock Usage in Retirement Plans



This number fell drastically from 39% in 2005, with several large plan sponsors completely liquidating their plan’s company stock holdings or imposing caps to limit the amount workers can hold.



28% of employers offered company stock in 2016 compared to 39% in 2005.



This is the percentage of employees who hold company stock in their retirement account.
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