Insight
The Power of the PENsion: Contributions – Pay Now or Later?
It may be a Prime Day to consider your pension plan contributions. You can pay now or later and there are benefits and risks to each decision. Amazon’s annual Prime Day event ran for two days on July 11 and 12. Nothing raises consumer now-or-later decisions quite like it. For 2023, the number one item…
Read MoreThe Power of the PENsion
Private sector pension plans originated as early as 1875. By 1950, in our post-war manufacturing economy, more than 25% of the private sector workforce had a pension (or defined benefit) plan, offering employer-funded benefits with guaranteed payment (in lump-sum or in payment streams) at retirement. The advent of defined contribution plans like 401(k) plans, with…
Read MoreThe Mirror of Erised
In preparation for a trip to Europe with our son and his wife, both big Harry Potter fans, it made sense to watch at least one movie from the series to familiarize myself with the characters. In the first movie, I was fascinated to learn about the Mirror of Erised. Albus Dumbledore (known as the…
Read MoreFiduciary Training: Put Fear to Rest
Fear is a powerful motivating force. Advertisers are keenly aware of this and market products to spur consumers to action. FOMO, “fear of missing out,” is part of our modern-day lexicon. More obscure is liticaphobia, the irrational fear of lawsuits or being sued by someone. This fear is based on an unfounded sense that you…
Read MoreRFPs: Reframing For Productivity
Unlocking the Power of Unconventional Thinking in Your Next RFP. Most pension plan sponsors engage in a “request for proposal” (RFP) process on a periodic schedule to fulfill their fiduciary obligations. Importantly, the RFP process helps to gauge the value of provider services to the plan and the reasonableness of those associated fees. Very likely,…
Read MoreMillennials Investing in a New(er) Millennia
Gone are the days of calling a stockbroker to hear the latest picks to then place a trade with a $50 commission for a mutual fund with a 2% expense ratio. Today, the average American 20-something with a phone and a brokerage account can place a zero-commission trade for any security on an exchange in…
Read MoreAm I a Plan Fiduciary? What Does That Mean?
If your job responsibilities include involvement with an employee benefit plan, you may be a fiduciary, and so might be others who help manage the plan or its assets. Given that, it is important to know what a fiduciary is, who is deemed to be a fiduciary, and what their responsibilities are under ERISA. The…
Read MoreDe-Risking Your Pension Plan: Is It Time to Assemble Your Team?
In 2022, MetLife commissioned a survey of 251 defined benefit (DB) plan sponsors and learned that 9 in 10 are considering a pension risk transfer (PRT), or a de-risking of their pension plan in the next 5 years.[i] Whether by lump-sum payouts to pension participants or through group annuity contracts with insurers, plan sponsors are…
Read MoreThrowing Darts in the Dark: Reasons to Review Your DB Plan Glide Path
For an employer, the ultimate goal of a defined benefit (DB) plan is to provide the retirement benefits promised to retirees. To accomplish this goal of funding those benefits and the related costs of providing them, an investment portfolio must generate sufficient returns—or a targeted rate of return (ROR). Asset allocation, or the practice of…
Read MoreReframing Our Perspective
“What I am looking for is a blessing not in disguise.” Jerome K. Jerome In response to aphorisms like “adversity builds character,” and “what doesn’t kill you makes you stronger,” is the honest plea from 19th century humorist Jerome K. Jerome, “What I am looking for is a blessing not in disguise.” While hard to…
Read More
