PLANSPONSOR - April/May 2020 - 46

INVESTMENT FOCUS
It Takes
Two
Sponsors may offer
an income product,
but do participants
understand and
use it?
W
ith defined contribution (DC)
plans as the primary retirement
vehicle for so many
American workers, plan sponsors might
want to consider augmenting their plan
to provide participants with both the
means and the ways to finance their
retirement: an adequate pool of savings,
as well as a framework for converting it
into retirement income and assets.
" Sponsors have a set of functions to
perform with their DC plan: setting the
investment glide path, engag[ing by way
of] communications and offering retirement
income within their plan, " notes
Lorie Latham, senior DC strategist at T.
Rowe Price Associates in Baltimore.
She points out that more retiring
workers are choosing to leave their
assets in their workplace DC plan: In a
2018 survey of her firm's recordkeeping
clients, 61% of account assets remained
in their respective plan for at least a year
after the owner had retired-up from
45% in 2012. Surveys nationwide reveal
a similar trend.
Sponsors are more inclined to keep
participants in their plan, too. " A number
of years ago, there was an academic
interest without much action, but today if
you ask sponsors fairly simple questions,
they're actually quite open to offering
retirement income solutions, " says Neil
Lloyd, head of U.S. defined contribution
and financial wellness research in the
Vancouver, British Columbia, office of
46 PLANSPONSOR.COM April - May 2020
consulting firm Mercer.
" Right now, " he adds, referring to the
COVID-19 crisis and drop in the financial
markets, " someone approaching
retirement age might not want to go
through the process of taking all their
money out of their plan. We've definitely
seen employers allowing people to stay
in, and it's a very positive step. "
Participant Misconceptions
Participant attitudes can complicate
the matter, however. " We've found that
there's a big disconnect in views and
Art by Katherine Streeter
motives between participants and sponsors, "
Latham says. She cites perceptions
that fees in an employer's plan would
be much higher than those levied by an
outside adviser-also that employers
charge hidden fees and might even take
kickbacks from providers.
She points to the opportunity for
sponsors to show off their hard work in
plan design. " There's a belief among some
participants that they need lots of choices
for retirement investing and that's a
reason for leaving their plan. Sponsors can
debunk the idea that more is better; they

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PLANSPONSOR - April/May 2020

Table of Contents for the Digital Edition of PLANSPONSOR - April/May 2020

The Road Ahead
2020 DB Administration Survey
2020 Plan Sponsor of the Year Finalists
2020 PLANSPONSOR Service Stars
Same but Different
It Takes Two
Staying the Course
PLANSPONSOR - April/May 2020 - Cover1
PLANSPONSOR - April/May 2020 - Cover2
PLANSPONSOR - April/May 2020 - 1
PLANSPONSOR - April/May 2020 - 2
PLANSPONSOR - April/May 2020 - 3
PLANSPONSOR - April/May 2020 - 4
PLANSPONSOR - April/May 2020 - 5
PLANSPONSOR - April/May 2020 - 6
PLANSPONSOR - April/May 2020 - 7
PLANSPONSOR - April/May 2020 - 8
PLANSPONSOR - April/May 2020 - 9
PLANSPONSOR - April/May 2020 - 10
PLANSPONSOR - April/May 2020 - 11
PLANSPONSOR - April/May 2020 - 12
PLANSPONSOR - April/May 2020 - 13
PLANSPONSOR - April/May 2020 - 14
PLANSPONSOR - April/May 2020 - 15
PLANSPONSOR - April/May 2020 - 16
PLANSPONSOR - April/May 2020 - 17
PLANSPONSOR - April/May 2020 - The Road Ahead
PLANSPONSOR - April/May 2020 - 19
PLANSPONSOR - April/May 2020 - 20
PLANSPONSOR - April/May 2020 - 21
PLANSPONSOR - April/May 2020 - 2020 DB Administration Survey
PLANSPONSOR - April/May 2020 - 23
PLANSPONSOR - April/May 2020 - 24
PLANSPONSOR - April/May 2020 - 25
PLANSPONSOR - April/May 2020 - 2020 Plan Sponsor of the Year Finalists
PLANSPONSOR - April/May 2020 - 27
PLANSPONSOR - April/May 2020 - 28
PLANSPONSOR - April/May 2020 - 29
PLANSPONSOR - April/May 2020 - 30
PLANSPONSOR - April/May 2020 - 31
PLANSPONSOR - April/May 2020 - 32
PLANSPONSOR - April/May 2020 - 33
PLANSPONSOR - April/May 2020 - 34
PLANSPONSOR - April/May 2020 - 35
PLANSPONSOR - April/May 2020 - 36
PLANSPONSOR - April/May 2020 - 37
PLANSPONSOR - April/May 2020 - 2020 PLANSPONSOR Service Stars
PLANSPONSOR - April/May 2020 - 39
PLANSPONSOR - April/May 2020 - 40
PLANSPONSOR - April/May 2020 - 41
PLANSPONSOR - April/May 2020 - 42
PLANSPONSOR - April/May 2020 - 43
PLANSPONSOR - April/May 2020 - Same but Different
PLANSPONSOR - April/May 2020 - 45
PLANSPONSOR - April/May 2020 - It Takes Two
PLANSPONSOR - April/May 2020 - 47
PLANSPONSOR - April/May 2020 - Staying the Course
PLANSPONSOR - April/May 2020 - 49
PLANSPONSOR - April/May 2020 - 50
PLANSPONSOR - April/May 2020 - 51
PLANSPONSOR - April/May 2020 - 52
PLANSPONSOR - April/May 2020 - Cover3
PLANSPONSOR - April/May 2020 - Cover4
https://www.plansponsordigital.com/plansponsor/march_april_2024
https://www.plansponsordigital.com/plansponsor/january_february_2024
https://www.plansponsordigital.com/plansponsor/november_december_2023
https://www.plansponsordigital.com/plansponsor/september_october_2023
https://www.plansponsordigital.com/plansponsor/july_august_2023
https://www.plansponsordigital.com/plansponsor/may_june_2023
https://www.plansponsordigital.com/plansponsor/march_april_2023
https://www.plansponsordigital.com/plansponsor/december_2022_february_2023
https://www.plansponsordigital.com/plansponsor/october_november_2022
https://www.plansponsordigital.com/plansponsor/august_september_2022
https://www.plansponsordigital.com/plansponsor/june_july_2022
https://www.plansponsordigital.com/plansponsor/excellenceawards_2022
https://www.plansponsordigital.com/plansponsor/april_may_2022
https://www.plansponsordigital.com/plansponsor/february_march_2022
https://www.plansponsordigital.com/plansponsor/december_2021_january_2022
https://www.plansponsordigital.com/plansponsor/october_november_2021
https://www.plansponsordigital.com/plansponsor/august_september_2021
https://www.plansponsordigital.com/plansponsor/june_july_2021
https://www.plansponsordigital.com/plansponsor/april-may_2021
https://www.plansponsordigital.com/plansponsor/february-march_2021
https://www.plansponsordigital.com/plansponsor/december-january_2021
https://www.plansponsordigital.com/plansponsor/october-november_2020
https://www.plansponsordigital.com/plansponsor/august-september_2020
https://www.plansponsordigital.com/plansponsor/june-july_2020
https://www.plansponsordigital.com/plansponsor/april-may_2020
https://www.plansponsordigital.com/plansponsor/february-march_2020
https://www.plansponsordigital.com/plansponsor/december-january_2020
https://www.plansponsordigital.com/plansponsor/october-november_2019
https://www.plansponsordigital.com/plansponsor/august-september_2019
https://www.plansponsordigital.com/plansponsor/june-july_2019
https://www.plansponsordigital.com/plansponsor/april-may_2019
https://www.plansponsordigital.com/plansponsor/february-march_2019
https://www.plansponsordigital.com/plansponsor/december_2018-january_2019
https://www.plansponsordigital.com/plansponsor/october-november_2018
https://www.plansponsordigital.com/plansponsor/august-september_2018
https://www.plansponsordigital.com/plansponsor/june-july_2018
https://www.plansponsordigital.com/plansponsor/april-may_2018
https://www.plansponsordigital.com/plansponsor/february-march_2018
https://www.plansponsordigital.com/plansponsor/december_2017-january_2018
https://www.plansponsordigital.com/plansponsor/november_december_2017
https://www.plansponsordigital.com/plansponsor/october_2017
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