DCIIA Proposes Industry-Standard Lexicon on Auto Feature Practices
WASHINGTON, DC, October 4, 2016 -- The Defined Contribution Institutional Investment Association (DCIIA), a non-profit association dedicated to enhancing the retirement security of American workers, today proposed a standardized lexicon for defined contribution (DC) retirement plans to promote further adoption of automatic features.
In a new whitepaper, "Building a Common Language to Promote Adoption of Auto Features in DC Plans," produced by DCIIA's Retirement Research Board and its Automation Task Force, the industry group encourages adoption of a standard set of terms to describe automatic features frequently used by defined contribution plans.
Joshua Dietch, head of retirement and institutional at Strategic Insight and co-chair of DCIIA's Retirement Research Board, explains: "During the course of DCIIA's 2014 Plan Sponsor Survey on Auto Features, the project team noticed that multiple terms are used to describe similar features, resulting in some confusion. This prompted further DCIIA research to identify how the industry uses common terms including automatic enrollment, sweeps, and re-enrollment."
The paper, which is based on the team's findings, provides a definitional framework with the objective of increasing the common understanding and usage of these practices.
Proposed definitional framework:
To read the full whitepaper, please goto the link below:
DCIIA's "Building a Common Language to Promote Adoption of Auto Features in DC Plans" http://bit.ly/2dGs5Zf
The Defined Contribution Institutional Investment Association (DCIIA) is a non-profit association dedicated to enhancing the retirement security of American workers. Toward this end, DCIIA fosters a dialogue among the leaders of the defined contribution community who are passionate about improving defined contribution outcomes. DCIIA members include investment managers, consultants, law firms, record keepers, insurance companies, plan sponsors and others committed to the best interests of plan participants. For more information, visit: http://www.dciia.org.
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