Confero Winter 2015: Issue 9 | Page 16

Defined Contribution Research Findings Provide Valuable Insights into Not-for-Profit Marketplace By Rob Goldman | TransAmerica R obert L. Weber, the author of A Random Walk in Science, an anthology of witty, insightful stories about scientific inquiry and the scientific method, is said to have remarked playfully that “basic research is what I am doing when I don’t know what I’m doing.” Nowadays, in the age of “big data,” easily accessible search engines, online databases and internet-based publication tools, we often encounter the effort of one business enterprise or another to make sense of the tons of information at its disposal. Transamerica Retirement Solutions’ interest in not-for-profit research is the result of its decades-long leadership role in this marketplace. During this period, we have consistently shared our findings and insights with retirement plan advisors, sponsors, public policy experts, government officials and academic consultants. When it comes to retirement readiness in the not-for-profit (NFP) sector, we do indeed have a very good sense of what we’re doing. The recently published Retirement Plan Trends in Today’s Healthcare Market—2014 is the eleventh annual study conducted by Transamerica Retirement Solutions and the American Hospital Association. The study provides important insights on current issues that impact defined contribution and defined benefit plans in the 14 SUMMER 2013 16 | WINTER 2015 healthcare market. The healthcare study is complemented by our newly minted research report, Retirement Plans for Institutions of Higher Education, our second such study, published in October, 2014, which offers findings based on our survey of over 100 plan sponsors at institutions of higher education. Taken together, these publications uncover and analyze important savings plan trends, detail comprehensive benchmarking information, and present an informative overall picture of retirement savings plans in the notfor-profit sector. Although for the purposes of this article I will concentrate on three areas of interest – plan design, investment options and the role of the advisor – I urge interested readers to contact me for a full copy of both reports. 403(b) Still the Plan of Choice to Increase Retirement Readiness Helping employees accumulate income for retirement is by far the most common primary goal of the retirement plan for healthcare sponsors. More healthcare plan sponsors are stating that it’s the right thing to do, indicating an increased awareness among plan sponsors about the need to assist employees in becoming ready