A massive defined contribution storm is about to crash onto the employee benefits landscape. You can choose to ride it out to continued – or even greater – profitability, or you and your firm can get swept away. I’ve written that employer interest in the defined contribution model will explode in the next 12 months. Here are the key factors that will drive employers toward a DC plan:
- High renewal increases;
- Ability to take total control of the benefits spend;
- Taxpayers will underwrite the employer contribution for many employees; and
- Employees will demand access to the taxpayer subsidies.
