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Plan Sponsors

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Plan sponsors
The entities that establish pension plans, including private business entities acting for their employees; state and local entities operating on behalf of their employees; unions acting on behalf of their members; and individuals representing themselves.

Plan Sponsor
An employer or company that offers a pension plan to employees. Plan sponsors may directly manage the pensions, but most allow third-party money managers to handle them. However, plan sponsors must determine which employees are eligible for the plan, and most contribute matching funds to each employee's pension, up to a certain point. A wide variety of pension plan types exist, and plan sponsors determine and may change the terms of what they offer. See also: 401(k), IRA.


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According to a survey conducted by the International Foundation of Employee Benefit Plans, the recession has forced both defined benefit plan sponsors and defined contribution plan sponsors to make changes to their retirement coverage and plan design.
As a result, many plan sponsors are unable to focus enough on real risk management, making it increasingly difficult to develop and execute a strategy to meet a plan's specific needs.
Despite current market conditions and returns for 2008, plan sponsors should not drastically adjust Return On Asset (ROA) assumptions for 2009, according to SEI's 2009 update of an annual research study on Financial Accounting Standards No.
 
 
 
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