Which administrative issue must be considered when structuring investment provisions of a DC plan?

When structuring the investment provisions of a defined contribution (DC) plan, the frequency of valuation is a crucial administrative issue to consider. Valuation refers to the process of determining the net asset value of the investments held within the plan, which directly impacts the account balances reported to participants and the overall financial management of the plan.

Frequent valuations ensure that employees have access to timely and accurate information about their investment performance. This can foster confidence among participants as they track their retirement savings and make informed decisions about their investment allocations. It supports the overall effectiveness of the plan by aligning participants' investment experiences with market performance, which is particularly important in volatile markets.

In contrast, while elements like employee training sessions, engagement duration, and the size of the investment team can affect the overall management and participant experience within a DC plan, they do not fundamentally alter how the investment provisions are structured in terms of regulatory compliance and financial accountability. Thus, the frequency of valuation stands out as a core administrative concern that directly impacts the integrity and operational success of the investment provisions.