QOTW: Diversity and Inclusion

This week we asked members if they take diversity and inclusion (D&I) into consideration in terms of retirement plan design and administration. This is an admittedly vague question, and as one member pointed out, you can’t lump design and administration together, especially in terms diversity and inclusion. The intent was to get a general sense of where members are in terms of D&I considerations regarding their plans. PSCA held a very well received general session at the 2021 national conference on the topic and recently published an article in the Spring 2021 issue of Defined Contribution Insights on the racial gap in retirement savings – with this question we wanted to get a sense of what members are thinking about in terms of diversity and retirement, if at all.

Roughly half of respondents (49.0) stated that D&I are not current retirement plan considerations, 20 percent are unsure, and just more than 30 percent do take D&I into consideration with their retirement plans. Though the comments ran the gamut from the plan is open to all and this is taking it to far, to yes, it’s a consideration and we make sure programs have diverse representation in imaging and messaging, the clearest message that comes through in the comments is that many plan sponsors are looking for guidance in this area.Many respondents indicated that they are not quite sure what the considerations are or how D&I might be incorporated into their plans but would love to know more about how to do so.  Read more comments below.

Not a Consideration:

• Hoping it will become more of a focus going forward.
• I do not think it is included because we have a safe harbor plan.
• Interested to know what those considerations look like with other plan administrators.
• It has not been a consideration, however, I feel strongly it should be.
• no, we treat everyone the same.
• No.  Not sure why my retirement plan would need to address such issues in a special way.
• Not currently, but I'd curious to hear others' considerations for D&I as it relates to retirement plans.
• Plans are set to include everyone depending on years of service and hours worked.
• Probably should be more of a consideration, but to date hasn't been.
• This seems to be carrying things a bit too far...
• We do ensure that our communications regarding retirement plans are accessible to all including multi-language formatted documentation and the ability to have a work or personal email to provide supplementary information.
• We encourage all employees to contribute with a strong match program, and offer education through many channels.  Not sure how you keep D&I in the forefront when designing a retirement plan.
• We offer advisory services to all employees in-person and virtually, at work or whenever convenient.  It's no sales, solely in the interests of the participants and the costs for the services are admin expenses equally spread between all participants. I'd be interested to hear how D&I would come into issue with a retirement plan.
• We offer financial planning for employees, and have sessions sponsored by our Employee Resource Groups supporting diverse employees; but beyond that - what exactly would a D & I consideration in retirement plan design and administration look like?
• We offer the same plan to all our employees
• Would love to consider and unsure how to do so.
• Yes. Retirement needs should be universally applicable to all employees.

Unsure:

• This question lacks specificity.  What aspects of plan design and administration are you referencing?  D&I is important but incorporating requirements could create problems.
• We have switched to a platform w stronger focus on D&I, but are there true diversity choices
• What should we keep in mind?

Yes, it is a consideration:

• Aa a faith-based organization, we include both full time and part-time employees in the retirement plan.
• As I think through D&I, its a matter of reviewing the features to see how the plan works across our diverse population.  The intent of the plan is to bring the financial awareness and benefits to our employees.
• Images and messaging reflects diverse population
• It wasn't a factor when the plan was originally designed, but as far as reviewing participation metrics, savings rates, and how we deliver financial literacy education...D&I is certainly a consideration.
• One of our focuses is women in the retirement plan, as their balances tend to lag behind men.
• Our Plan Administrator is making a new and concerted effort to reach out to ethnically diverse, LGBTQ+ and non-traditional families.      I think this will be very helpful as far as marketing materials and webinar offerings.
• Our team here is a close team and we do care about our employees so diversity and inclusion are always considered
• We have a non-contributory traditional DB pension plan, in addition to a 401k with company match. Because the DB is non-contributory, all employees participate automatically after vesting. The 401k match also encourages and assists employees to further save toward their retirement.
• We plan to spend some focused time analyzing this and ensuring we are closing any gaps or providing more where needed. Interested in how others are measuring and what specific steps they are taking.
• Would like to know more on how to design and implement plan in consideration of diversity and inclusion.
• Your Retirement Committee should have a diverse membership