During a recent webinar, three defined contribution plan experts from Mercer shared six critical considerations for DC plan sponsors in 2024. The presentation not only narrowed in on the major issues that sponsors face in the new year, but also featured action items that employers should consider as a way of tackling the issues head on.

What are you getting from your investment providers?

To start, Katie Hockenmeier, director of DC research for Mercer, suggested some key areas that warrant a "deeper dive" for investment committee members in 2024. One suggestion is looking more closely at the investment guidelines that are in place for large cap growth managers and whether they offer adequate flexibility for market conditions. In addition, she said Mercer wanted to highlight that plan sponsors should be wary of managed account solutions that are "very low cost" and should ensure that they offer "sound investment methodology." In addition, Hockenmeier suggested that committees should be digging into target date fund providers and their approach to decumulation support for participants, while also holding thoughtful discussions surrounding capital preservation, particularly in light of high interest rates.