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Good Governance: Managing DC Plan Risk
A common misconception concerning DC Plans is that they are lower “risk” than DB Plans. Although DC Plan sponsors do not have to fund deficits, the other risks associated with their management, such as regulatory compliance, plan administration and investment risks are similar to those faced by DB Plans and, in the area of communications, they could actually be higher. Complying with CAP and CAPSA guidelines ensures the adoption of systems and processes that facilitate risk management.
Using Lifecycle Funds to Manage DC Plan Risk
Defined contribution retirement programs are attractive to plan members who prefer to take responsibility for investing their own retirement funds. However, plan members are not all equally equipped to take on this responsibility. One approach employers can take to mitigate the risk that this represents is to offer lifecycle options so that throughout their working years employees can easily select an appropriate portfolio that fits their age and risk tolerance.
Performance Leadership: Beyond Performance Management
Ask any ten HR professionals what their top priority is these days, and it’s highly likely that more than half of them will tell you that performance management is their hottest issue. Organizations need both strong leadership and effective performance management to continue to attract and retain the best employees, as they are essential to the productive engagement of employees. Performance Leadership is crucial to the “retention” portion of the all-important attraction-retention axis.
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