Brokerage Windows: Get the Full View
Several brokerage providers eliminated commission fees on stock, ETF, and other trades recently, a move that highlights a “race to zero” within the brokerage industry. Background: Brokerage firms have historically charged commission fees on various types of trades. The amounts charged, however, have generally declined over the past few years as smaller robo-firms have entered the […]
DC Plan Hacks: Tips for an Efficient Design
View PDF To best serve employees, defined contribution (DC) plans need to evolve to meet the changing needs of the workforce and respond to the shifting regulatory landscape. For instance, the Baby Boom generation may require a greater focus on decumulation strategies, while the Generation X cohort may need more savings options, and those in […]
IRS Provides Further Tailwinds to Open MEPs
The IRS has released proposed regulations that would relax the existing “bad apple rule,” which has been one of several impediments to open multi-employer plans (MEPs), which are defined contribution (DC) plans shared by more than one employer. The bad apple rule stipulates that the tax-qualified status of all the plans within an MEP could be revoked […]
ESG Mythbusters: The DC Plan Summer Blockbuster?
Growing interest in environmental, social, and governance (ESG) investing is apparent across the institutional investment industry. ESG has also captured the attention of policy makers; for instance, the White House, the Senate Committee on Banking and Finance, the Labor Department, and the SEC have all addressed ESG in the past year. And we can read […]
The Cobbler’s Shoes
Callan analyzed 401(k) plans sponsored by investment managers to identify trends of value to the defined contribution (DC) plan industry
Greg Allen on the Big Themes
Read the Interview Greg Allen, Callan’s chief executive officer and chief research officer, recently sat down with Millie Viqueira, head of our Fund Sponsor Consulting Group, to talk about his 30 years at Callan. The wide-ranging interview touched on his start at the firm, what has changed in the industry and how he has changed over the last 30 years, […]
The Impact of Vendor Consolidation: Wells Fargo and Principal
After much industry speculation, Principal Financial Group is acquiring Wells Fargo’s Institutional Retirement and Trust (IRT) business for $1.2 billion.
Bill Would Create Annuity Safe Harbor
In theory, the promise of guaranteed income in retirement seems like a great idea. The 2006 Pension Protection Act took steps to limit the fiduciary implications of including annuities in defined contribution (DC) plans. But according to Callan’s 2019 DC Trends Survey, few plans offer annuities either as a form of distribution payment (11%) or as […]
Steps to Make DC Plans Good (and Avoid Bad or Ugly Outcomes)
View My Paper Remember the 1966 spaghetti western “The Good, the Bad, and the Ugly”? The promise of a vast fortune creates a partnership between the Good (Clint Eastwood), the Bad (Lee Van Cleef), and the Ugly (Eli Wallach) before pitting them against one another in the search for the loot, with plenty of gorgeous cinematography […]
Two Questions Could Save Your DC Plan Millions
In our recent paper, “Dear CFO: Two Questions Could Save Your Company Millions in Litigation Costs,” we addressed some of the challenges facing defined contribution (DC) plans.