401(k) plans are trifecta of confusion

The three major stakeholders in 401(k) plans — plan sponsors, record-keepers and the plan participants themselves — are often miles apart in their views of the plans and the positions of other stakeholders. That is the finding of research from Boston-based Cerulli Associates, which believes the areas of misalignment "may offer opportunities for plan providers, advisers and consultants." For example, while 27% of plan sponsors identify improving the quality of the investment lineup as a top priority this year, "only 4% of record-keepers identify that topic as a top priority for plan sponsors," said Jessica Sclafani, a Cerulli director. The research also found that less than half of sponsors believe that employees are solely responsible for their own retirement savings and investing decisions, but greater than three-quarters of participants feel that they have sole responsibility for these decisions, Ms. Sclafani said.