The continued evolution, and surrounding debate, of private markets in defined contribution plans makes clear that oversight of the default investment is far more encompassing than reviewing glidepaths, hindsight-oriented performance, or fees alone.

Governance must also address liquidity engineering, structural alignment, and participant equity under stress.

Default investment solutions within most defined contribution plans are no longer merely placeholders. The investment selection that plan sponsors make on behalf of their participants is, whether by design or by inertia, the portfolio the majority will hold for much of their working lives.

The following ten questions are not designed to produce “right answers.” They are intended to surface whether a plan’s default investment is being actively governed or merely assumed. While the questions and related governance considerations are outlined here, several will be explored in greater depth in future insights throughout the year.