The Defined Contribution Institutional Investment Association (DCIIA) published a report detailing considerations for fiduciaries in constructing a plan investment menu. It presents a three-tier approach for participant engagement:
Do it for Me
This tier supports disengaged participants through automatic enrollment and suitable default investments, like target date funds.
Help Me Do it
This tier caters to participants seeking assistance in portfolio building, emphasizing engagement and a manageable variety of investment options.
Do it Myself
This tier is for independent participants, who benefit from brokerage windows and education, although only 20% use advisors.
The report advises ongoing legislative monitoring and analysis of market changes affecting investment menus.