An increasing number of defined contribution(DC)plans are getting a socially responsible investment(SRI)option in their defined contribution plans at work, according to new Mercer Investing Consulting data released by the Social Investment Forum.
The survey finds that 19% of DC plans in the United States already include an SRI option and that 41% of all DC plan sponsors not currently offering SRI options expect to do so within the next three years.
“Socially responsible retirement options are becoming a fixture of corporate America’s retirement plans,” says Lisa Woll, CEO of the Social Investment Forum. “Companies that offer them are providing a real benefit to employees.”
Predictions for SRI growth are strong: 81% of plan administrators, 72% of consultants and 47% of plan sponsors predict an increasing or steady demand for SRI over the next five years.
A total of 129 U.S. plan sponsors, 16 DC plan administrators and 38 consultants participated in the survey.
The July issue of Benefits Canada will explore environmental issues and SRI and what the impact will be for pension plan sponsors.
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