Mid-Sized Pension Plans: How to Get Back on Track in 2017
Recent market research suggests that sponsors of mid-sized defined benefit pension plans (those with assets of between $50 and $500 million) remain most concerned with risk management, lower future return expectations and stock market volatility. What we find more concerning, however, is these same surveys also indicate that many DB plan sponsors have yet to formally develop a goal for their retirement programs, nor have they designed a road map for getting there.
For those sponsors who may have lost their way, or those just looking to improve upon current practices, this brief report provides some sample governance and investment procedures designed to help get you back on track toward achieving your defined benefit plan objectives.
The Benefits of Enacting a Plan Sponsor Philosophy
Overwhelmed by a lengthy to-do list, including the perpetual need to meet a number of ERISA regulatory obligations, plan fiduciaries often lose sight of the foundation for sponsoring a retirement plan: its purpose. Enacting a Plan Sponsor Philosophy is an effective way for committee members to remind themselves of this basic goal.
In this brief report, we explore what exactly a "philosophy" is and how implementing one can help to expedite and improve your committee's decision-making process, all while better aligning your plan design with your retirement plan's objectives
Engaging the Millennial Generation in DC Plans
Soon-to-be the largest percentage of the working age population, millennials face unique headwinds, including high levels of student debt and risk-averse investing styles, which may hinder their ability to adequately prepare for retirement. Plan sponsors should evaluate what their vendors are doing to address this sizable and unique population and consider plan features that may help guide them to a successful retirement.
The Evolution of Collective Investment Trusts and Considerations for Plan Sponsors
Plan Sponsors have increasingly focused on finding low-cost investments and more transparent fee structures for their retirement plans, in part due to the increasing number of headlines related to fee-based litigation issues. This paper provides an overview of and trends surrounding Collective Investment Trusts (CITs), in particular within the target date industry, and outlines what plan sponsors should consider when looking at adding CITs to their plan lineup.
In–Plan Retirement Income Solutions: Landscape Overview and Obstacles to Adoption
For several years, PEI has been studying the retirement income landscape. We have been evaluating in-plan retirement income products, actively monitoring the regulatory activity and legislative environment, and keeping a close eye on the implementation of retirement income products within defined contribution plans. Michael Sasso, one of PEI’s three co-founders, was the Issue Chair for the 2012 ERISA Advisory Council‘s “Examining Income Replacement During Retirement Years in a Defined Contribution Plan System” report. Mr. Sasso then collaborated on the report that provided recommendations to the Secretary of Labor as the DOL contemplates providing guidance on such solutions for plan sponsors.
The Pursuit of Procedural Prudence: Do You Have the Expertise?
As a plan fiduciary, you are expected to possess the necessary expertise to meet all of your obligations under ERISA, and as part of and relative to those obligations, you are expected to proceed in your role in a prudent manner.
While perhaps the least defined of ERISA duties, the duty of prudence requires significant attention, as it can affect the fulfillment of all other duties for which you are responsible, and the effectiveness of your fiduciary compliance altogether.