Although 81% of respondents to the recent Moving Forward—An Overview of Capital Accumulation Plan survey by Buck Consultants said that they have a communication strategy in place, almost three-quarters of Canadian employers still thought that their employees were confused over the investment options in their CAPs.

The survey, which polled 150 Canadian employers, found that 57% of sponsors, up from 40% in 2003, offer more than 10 investment choice—which explains the possible cause for confusion.

“The more options you give employees, the less likely they are to actually make informed choices, and that can fuel investment by default,” said Peter Arnold, Buck’s national practice leader for investment and DC consulting. “Many well-run CAPs are taking a less-is-more approach to helping employees get through the investment maze.”

The majority of plan sponsors admit that their main concern regarding their DC plan is inadequate investment education and 86% said providing more education in the future was one of the top priorities. Currently, 59% of respondents said they use an outside vendor for investment education and only 17% offer investment advice from an outside supplier.

In addition, plan sponsors said that adding investment modeling tools and introducing or changing levels of company matching contributions were among their future resolutions.

Other concerns that were top of mind with employers were: governance and compliance issues (68%), benefit adequacy (68%), employee satisfaction (66%) and cost containment (64%).

To comment on this story, email april.scottclarke@rci.rogers.com.

Copyright © 2018 Transcontinental Media G.P. Originally published on benefitscanada.com