Growth of Participant Direction in Defined Contribution Plans

Source: William E. Evan, David A. MacPherson, Industrial Relations: A Journal of Economy and Society, Volume 49, Issue 2, April 2010
(subscription required)

From the abstract:
Using data from IRS Form 5500, this study examines the causes and consequences of the shift toward participant direction of investments in defined contribution plans. The analysis reveals that collective bargaining and pension investments in employer stock reduce the chance of a switch to participant direction, whereas below average returns increases the chance. Also, a switch to participant direction increases employee contributions to the pension and reduces the share of assets invested in employer securities.

Leave a Reply