1. Decide between offering a retirement or savings plan
Is your DC plan a Savings or Retirement program? Many plans have the word retirement in their name, but operate more like a savings plan: employees put aside balances they can tap during their careers to address temporary income shortfalls or high-cost life events. However, if you see the programs goal as helping employees plan and actually save for a secure retirement, then new strategies may be in order. For example, you may now want to default employees to much higher contribution rates than the current norm of 3% or 4%. If you realistically believe the organization can only offer a savings vehicle, then educate employees
that they are largely expected to look out for their own retirement income needs.