A New Way of Thinking About Retirement ‘Plans’
An excerpt from an article by PlanSponsor featuring a quote from PEI partner and co-founder Michael Sasso.
By Rebecca Moore
“Mike Sasso, partner and co-founder of Portfolio Evaluations, told attendees of the 2019 Plan Sponsor Council of America’s Annual Conference that defined contribution retirement plans are not “plans.” Rather, he said, they are savings vehicles.
He said he doesn’t think a new fiduciary safe harbor for selecting annuity providers is going to open the floodgates of plan sponsors adopting annuity options in their plans. But, plan sponsors are having conversations about the purpose of their defined contribution (DC) plans, and how to help employees establish a source of retirement income. ‘This is one reason more plan sponsors want employees to keep their assets in the plan after retirement,’ he said. He added that offering installments as a distribution option in the DC plan is a ‘no-brainer’ for plan sponsors.”
To read the full article, as originally published on PlanSponsor‘s website on May 1, 2019, click here.