The Pension Protection Act has changed patterns in savings and reporting, reports Grant Thornton LLP in its 2008 Plan Sponsor Retirement study.

Plan sponsors are placing a greater emphasis on using investment policy statements. More than 80% of organizations have one in place, and 40% are reviewing their IPS consistently, indicates the Chicago-based consulting firm

"A sound investment policy is an invaluable tool for the effective management of a plan's investment options with today's supply of fund choices," says Debbie Smith, an employee benefits practice partner at Grant Thornton.

Maintaining good records is key. Roughly three-quarters of participants are documenting decisions to demonstrate accountability and accuracy and to justify investment decisions.

"We're encouraged by the sound practices of the plan sponsors we surveyed and the commitment shown to maintaining accurate records, which is vital to accountability of investment decisions. We're interested to see the future effects of the PPA on default options in the coming years," Smith says.

The PPA has caused changes in automatic enrollment, vesting and company match amounts, the survey indicates. Thirty-nine percent of plans offer automatic enrollment options, and about 25% are considering adding it as a feature.

Moreover, 53% of respondents make investment advice available, and nearly 75% provide targeted participant education information.

"Behavioral finance experts have suggested 401(k) plans must become easier to understand for the average working individual to ensure that participants will be capable of reaching their retirement goals," says David Wolfe, a partner at Drinker Biddle and Reath.

The survey was completed in November 2007 with 183 independent plan sponsors.