ESG’s ‘Good Vibrations’? Not Yet for DC Plans
There is no shortage of interest around the environmental, social, and governance (ESG) space, but defined contribution plans remain somewhat skeptical about ESG options.
Enhance Your DC Plan with a “Mega Roth”
Plan sponsors who want to allow participants to contribute more Roth monies to a defined contribution (DC) plan than the standard limits have an option: The “Mega Roth,” an in-plan Roth conversion of after-tax contributions in the same year they are made to the DC plan. These contributions work like this: Participants defer up to […]
Aging and Financial Decisions
At Callan’s National Conference, Hal Hershfield of UCLA and Raphael Schoenle of Brandeis discussed misperceptions about aging.
Managing Your NQDC Investment Menu
View PDF In an article for the latest edition of our DC Observer, I discussed non-qualified deferred compensation (NQDC) plans, the investment menu structure, and hedging strategies. Unlike a qualified defined contribution plan, in which plan assets are segregated from the employer’s general assets in a trust or custodial account, the compensation deferred into an NQDC plan […]
Evaluating Average DC Plan Fees
A new feature of Callan’s DC Index, the DC Fee Analysis chart, examines the effects of plan size, participant allocations, and vehicle utilization on investment management fees
Technology Challenges in Volatile Markets
During the recent market volatility, some larger defined contribution (DC) plan vendors experienced difficulty managing peak participant online access or transactional capabilities with their participant websites and/or trading platforms. Plan sponsors would benefit from reviewing their vendor’s technology to confirm it is adequate to support the plan and participants. .
Non-U.S. Bias Rewarded Plans in 2017
Endowments/foundations (+3.8%) performed best last quarter, followed by public plans (+3.7%), Taft-Hartley plans (+3.6%), and corporate plans (+3.5%). For all funds, the return was +3.7%, according to Callan’s database. Plans with assets below $100 million performed best by fund size, up 3.7%, compared to 3.6% for both medium plans ($100 million-$1 billion) and large plans. […]
Callan DC Trends Survey (2018)
Full Survey Callan’s 11th annual Defined Contribution (DC) Trends Survey found that plan sponsors continue to focus intensely on fees. Sponsors, by a wide margin, cited reviewing plan fees as the most important step they took in improving their fiduciary position in 2017, and 60% of survey respondents said they are somewhat or very likely to conduct […]
Restructuring a Multi-Manager Plan: A Case Study
View PDF By Ben Taylor and Michael Joecken In the most recent edition of the DC Observer, we described the restructuring of a city-sponsored 457(b) plan with nearly $1 billion in assets that uses multi-manager funds. The revamping process examined the investment fund structure, participant enrollment, and investment management fees. In our article we detailed the steps […]
Callan Survey Unearths DC Governance Committee Productivity Hacks
Our survey found that the governance committees that oversee DC plans need to make efficient use of resources, but it is not always apparent how