Morgan Stanley Taft-Hartley Plan Insights: Retirement Outcomes and Education Take Center Stage

• Plan decision-makers are balancing multiple priorities in a shifting economic landscape
• Plans report strong need for broad education for both trustees and participants

New York -

Morgan Stanley Institutional Consulting Solutions today announced results of its 2025 Taft-Hartley Survey, providing insights into how these plans are responding to top priorities and navigating a rapidly shifting market environment.

The survey reveals that amid challenging economic conditions, strong collaboration between plan sponsors and consultants has become essential for Taft-Hartley plans to pursue improved retirement outcomes. Key findings include:

1. Plans are carefully balancing priorities: Two-thirds of Taft-Hartley plan decision-makers said their top goal was to deliver pension benefits to participants without requiring increased employer contributions. At the same time, almost half (47%) said another top goal was ensuring members have a successful retirement, underscoring their commitment to the financial well-being of participants. This highlights the competing pressures plans face to provide secure retirement outcomes for participants while avoiding additional burdens or costs for employers.

2. Plan sponsors are tackling challenges beyond their control: Economic and regulatory concerns present significant obstacles for plans. In fact, plan decision-makers reported their top three challenges as slowing economic growth/the threat of recession (86%), market volatility (84%), and meeting regulatory requirements (76%).

3. Education is a critical area for improvement: Plan decision-makers recognize the need to educate trustees and participants on fiduciary and regulatory topics, but many lack resources. Over 70% of plans do not offer training and education for their trustees, and among those who don't offer training but see its value, two-thirds would prefer to use a consultant. Meanwhile, educating plan participants poses its own challenges: Only 18% of respondents find it very easy to educate members, with engagement, complexity, and delivering relevant content across a broad member base cited as the top speedbumps.

4. Plans are deeply engaging with consultants: Taft-Hartley plans often work with consultants to help manage their investments, and more than 80% give some degree of discretion on investment decisions to a consultant. In any model, Taft-Hartley decision-makers say they most value their consultant's ability to advise on services beyond the plan's investment portfolio-for example, with tasks such as helping to interpret actuarial findings and offering broad education.

"Our data shows that Taft-Hartley plans are navigating complex economic and market dynamics while striving to secure stronger retirements for their members," said Jeremy France, Head of Institutional Consulting Solutions at Morgan Stanley. "By fostering ongoing education, leveraging innovative tools, and harnessing the requisite expertise, together we can design bespoke solutions that address tomorrow's challenges, deepen partnerships and reimagine what's possible for Taft-Hartley plans and their members."

"We see clear opportunities to deepen partnerships between Taft-Hartley plans and their investment consultants," added Wm. Craig Dobbs, Institutional Consulting Director at Graystone Consulting. "The consulting relationship is central to helping plan sponsors achieve investment goals and ensure the long-term health of these plans. Understanding plan priorities- especially where expectations and outcomes diverge- helps plan sponsors and their consultants drive stronger outcomes for Taft-Hartley plan members."

The survey, conducted by independent research firm 8 Acre Perspective, gathered input from 150 investment representatives at Taft-Hartley plans to offer a comprehensive look at the current landscape and outlook for these critical retirement and financial wellness strategies.

About Morgan Stanley Institutional Consulting Solutions

Institutional Consulting Solutions (ICS) combines the personalized attention of a boutique firm with the global reach and resources of Morgan Stanley, offering comprehensive consulting and fiduciary solutions tailored to a diverse range of clients-including corporations, foundations, endowments, Taft-Hartley plans, healthcare organizations, insurers, and educational, professional, faith-based, and government entities. Leveraging the expertise of the Morgan Stanley Wealth Management Global Investment Committee, ICS provides customized investment strategies, ongoing portfolio monitoring, and rigorous risk analysis to ensure alignment with our clients' unique objectives and risk profiles.

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