Survey_MK_2017

Abstract

To analyze the change in behavior post- versus pre-streamlining, we obtained access to information on the retirement plan account balances and periodic contributions of all the (identitycensored) participants. Our administrative dataset included information on contributions, balances, and asset allocation prior to the streamlining, defined in our analysis below as end-June 2012, and after the change, defined as end-December 2012. To this file we appended information from public sources (via ticker and CUSIP numbers) for each fund’s equity fraction and style (bond, balanced, stock, etc.), as well as monthly return histories. The fund administrator also provided individual demographic information on participants’ age, sex, education (highest degree from graduate school versus less than graduate school), and, from external sources, imputed household income (assigned according to the participant’s zip codes, where low <$50K, middle $50-100K, and high >$100K). Using the participant balance and contribution data, we identify participants whose holdings were directly affected by the streamlining. Specifically, we separate participants into a Streamlined group – those participants who held funds at end-April 2012 that were subsequently deleted due to streamlining – and a Non-Streamlined group. Additionally, we separate the streamlined participants into two subgroups: “Plan Defaulted & Streamlined” are the streamlined participants who took no action after the announced streamlining and were defaulted by the Plan into an age-appropriate TDF at the October deadline, and “Not-Plan-Defaulted & Streamlined” are the streamlined participants who exchanged out of the deleted funds prior to the October deadline.