In 2008, defined contribution retirement plan sponsors had to answer a barrage of questions by participants about investment risks and financial planning. Some concerns about excessive fees lead to lawsuits from employees and retirees. Going forward in 2009, DC plan sponsors can expect the same, given that the national economy shows no signs of a quick recovery.

"Plan sponsors face many challenges in developing a well-structured DC plan to help meet the retirement requirements of participants, while minimizing the fiduciary risk of managing the plan and its investment line-up," says Barbara Marder, the global leader of Mercer's defined contribution consulting business. "The significant decline in the capital markets has ramifications for record keepers, trustees and investment managers," she adds.

The HR consulting firm recently created a checklist of 10 resolutions DC plan sponsors should consider when managing their plans in 2009.

1. Determine how much participants are paying in investment and plan administration fees.
2. Confirm that all investment funds in the lineup are appropriate.
3. Review the effectiveness of the employer contributions.
4. Determine whether your target maturity funds are appropriate for your current participant population.
5. Ascertain how effective your communication strategy is with plan participants.
6. Confirm that you are ready to comply with DOL disclosure regulations once they are finalized.
7. Review and revise your plan's investment policy statement.
8. Determine whether your plan governance structure creates unnecessary risk for the company, the board members and senior executives.
9. Review administrative procedures to ensure legal compliance.
10. Consider plan options to provide participants with an opportunity to manage their retirement income.

These tips don't just help you avoid lawsuits. They also could make your employees more knowledgeable about their financial investments, more satisfied with their retirement benefits and less likely to leave the job.

"Overall, we believe that plan sponsors should be heartened by the fact that most of their participants are treating their 401(k) accounts as long-term investments and staying the course," explained Eric Levy, the retirement business leader of Mercer's outsourcing business. "It is certainly understandable why some participants would move to capital preservation funds, given the recent economic upheaval, and in all likelihood this will continue until the macroeconomic outlook improves."