Key issues affecting institutional plans
In our midyear edition of Retirement Plan Trends, we look at some of the significant developments confronting defined benefit (DB) and defined contribution (DC) plan sponsors.
Source: Capital Group. Note: DC plan sponsors were asked to name the top three priorities for their plans. Each bar shows the percentage of sponsors who included each topic among their choices. Totals may not reconcile due to rounding. Based on survey responses collected from July 13, 2022, to December 1, 2022. There were additional responses that are not included in this chart but can be found by visiting the online article.
Defined contribution trends
More defined contribution trends
Defined benefit trends
Source: Capital Group. Example is hypothetical.
Public plan trends
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Funded status is a measure of the difference between the fair value of a plan’s assets and its benefit obligation.
Liability-driven investing (LDI) is an approach that focuses the investment policy and asset allocation decisions on matching a pension plan’s current and future liabilities.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
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