Agenda is subject to change.
Section I: The Accumulation Challenge
8:45 a.m. - 9:30 a.m.
The Path to Retirement Readiness
Over three-quarters (84%) of plan sponsors are not very confident their plan’s participants will have the needed amount of income to retire at retirement age (62-65)1. The primary reasons for this are quite simple in that the belief is that not enough is being saved. As DC plans are being redesigned to encourage greater overall participation and increased contributions, what is the impact? This session will focus on the two critical components of successful accumulation – contributions and investment returns.
This discussion will center on:
- Outlining how influential factors such as participants’ expected longevity, salary levels, tenure, contribution rates and expected retirement age impact their ability to accumulate
- Helping participants with financial wellness analysis and retirement preparation including understanding the impact of loans, hardship withdrawals and contribution rates
- Key considerations around re-enrollment, auto-enroll, and escalation features moving forward
- White labeling and menu simplification
- What levels of customization are needed? When does it make sense to consider custom target date funds? What options exist for customization?
9:30 a.m. - 9:50 a.m.
Case Study Presentation: How a Large Technology Company Changed their DC Investments to Improve Outcomes for Participants
A large technology company located in New England with $640 million in defined contribution (DC) assets. In 2016, they set out on a process seeking to streamline investments for its DC plan in an effort to increase participation and improve potential outcomes. Learn the details of their effort and how it ultimately resulted in lowering investment fees by approximately 20%* and more than tripling the participation of employees in target date funds.
9:50 a.m. - 10:00 a.m. - Break
Section II: Solving the Decumulation Dilemma
10:00 a.m. - 10:50 a.m
Incorporating Lifetime Retirement Income Options
Recent studies have suggested that close to 10,000 baby boomers hit age 65 every day, resulting in a significant uptick in retirements within the U.S. workforce. Participants continue to ask for direction in managing their savings in retirement. As a result, the decumulation phase of retirement savings is at the forefront of many plan sponsors’ current focus.
Knowing that a lot of money can be exiting defined contribution plans on a regular basis, sponsors are looking for solutions that can provide stable, inflation adjusted retirement income streams, while potentially retaining assets. However, concerns remain about the role of the plan sponsor as a fiduciary in determining what products to offer, as well as helping participants determine how much income their savings can provide during retirement.
This discussion will focus on:
- Potential regulation around safe harbor provisions for plan sponsor’s selecting annuity providers
- Understanding the current and future options for retirement income solutions – annuities, laddered bonds, TDFs with systematic withdrawals, guaranteed income components, etc.
- Helping participants with financial wellness analysis and retirement preparation including understanding the impact of loans from their plans and contribution rates
- Debating the benefits of in-plan vs. out of-plan retirement income solutions
10:50 a.m. - 11:00 a.m. - Conclusion
Scott Muench, SEI Regional Director, Defined Contribution
- Jack Towarnicky, Executive Director, Plan Sponsor Council of America(PSCA)
- Warren Cormier, Executive Director, DCIIA Retirement Research Center (RRC)
- Jake Tshudy, SEI, Managing Director, Institutional Investment Strategies
- Mike Swann, SEI, Client Portfolio Manager, Institutional Defined Contribution Team
- Mike Cagnina, SEI, Vice President, Managing Director, Institutional Team
1 2016 Defined Contribution Outlook: “Do DC Plans Need to Be Redesigned?” SEI (January 2016)
*Realized fee reduction depends on particular circumstances and results may not be typical for all accounts.
Information provided by SEI Investments Management Corporation (SIMC), a registered investment adviser and wholly owned subsidiary of SEI Investments Company (SEI).
Plan Sponsor Council of America and DCIIA Retirement Research Center are not affiliated with SEI or its subsidiaries.
The material included herein is based on the views of SIMC. Statements that are not factual in nature, including opinions, projections and estimates, assume certain economic conditions and industry developments and constitute only current opinions that are subject to change without notice. Nothing herein is intended to be a forecast of future events, or a guarantee of future results.
There are risks involved with investing including loss of principal. There is no assurance that the objectives of any strategy or fund will be achieved or will be successful. No investment strategy, including diversification, can protect against market risk or loss.
Certain economic and market information contained herein has been obtained from published sources prepared by other parties, which in certain cases have not been updated through the date hereof. While such sources are believed to be reliable, neither SEI nor its affiliates assumes any responsibility for the accuracy or completeness of such information and such information has not been independently verified by SEI.