In this white paper, Olivia S. Mitchell and Timothy (Jun) Lu, Stephen P. Utkus and Jean A. Young of the Wharton School examine the option of borrowing from a retirement account, and show that employers' loan rules have a strong effect on borrowing patterns. They found that for plans allowing multiple loans, participants are more likely to borrow and take out larger loans. Their results show that defined contribution plans, while designed mainly to support old-age financial security, include important features for financing current consumption.
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This white paper by Cammack Retirement Group provides an overview of the increasingly important role target date fund (TDFs) play in retirement plans. It also describes the methodology and classification system Cammack uses for monitoring TDFs. It argues that monitoring a plan’s TDF options is one of the most important fiduciary obligations plan sponsors face in managing their retirement plan investment lineup.