PLANSPONSOR - May - June 2023 - 18

FEATURE
A NEW
ofTDFs
BREED
I
An in-depth look at target-date funds
with various lifetime-income components
f, in the previous decade, target-date funds reigned on defined contribution plans, might the
2020s belong to " TDFs with a lifetime income component " ?
That label is a mouthful, but it also says it all. Still, industry observers are split on the
products, which have only recently made their way into 401(k) plans, thanks to the Setting
Every Community Up for Retirement Enhancement Act of 2019. The SECURE Act sought to
clarify responsibilities and protections for plan sponsors that seek to add lifetime income options.
According to some sources, the funds are nothing less than a replacement for traditional
defined benefit plans, while others call them the latest in a long line of income-in-retirement
contrivances that have fizzled and closed-a newer iteration of the " managed payout fund " briefly
offered by Vanguard, Fidelity and some others.
" TDFs with income bridge the gap between defined benefit plans and traditional target-date
funds used in defined contribution plans, " says Spencer Look, associate director of retirement
studies at the Morningstar Center for Retirement and Policy Studies in Chicago.
" Participants can always purchase an annuity in the retail market, and these products will
generally be similar to retail annuities in the ways they work and the mechanics behind the
scenes, " Look says. " But in the defined contribution system, there's going to be fiduciary oversight,
which is not always present with retail annuity sales. "
18 PLANSPONSOR.COM May - June 2023 Art by Cristian Turdera

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PLANSPONSOR - May - June 2023

Table of Contents for the Digital Edition of PLANSPONSOR - May - June 2023

INSIGHTS
PARTICIPANT ANALYSIS
RULES & REGULATIONS
UPFRONT
Role Call
A New Breed Of TDFs
2023 Plan Sponsor Of The Year Finalists
2023 HSA Conference
A Personalized Approach
The New Wave
FIDUCIARY FORUM
INSIDE ANGLE
PLAN PROFILE
PLANSPONSOR - May - June 2023 - Cover1
PLANSPONSOR - May - June 2023 - Cover2
PLANSPONSOR - May - June 2023 - 1
PLANSPONSOR - May - June 2023 - INSIGHTS
PLANSPONSOR - May - June 2023 - 3
PLANSPONSOR - May - June 2023 - PARTICIPANT ANALYSIS
PLANSPONSOR - May - June 2023 - 5
PLANSPONSOR - May - June 2023 - RULES & REGULATIONS
PLANSPONSOR - May - June 2023 - 7
PLANSPONSOR - May - June 2023 - UPFRONT
PLANSPONSOR - May - June 2023 - 9
PLANSPONSOR - May - June 2023 - 10
PLANSPONSOR - May - June 2023 - 11
PLANSPONSOR - May - June 2023 - 12
PLANSPONSOR - May - June 2023 - 13
PLANSPONSOR - May - June 2023 - Role Call
PLANSPONSOR - May - June 2023 - 15
PLANSPONSOR - May - June 2023 - 16
PLANSPONSOR - May - June 2023 - 17
PLANSPONSOR - May - June 2023 - A New Breed Of TDFs
PLANSPONSOR - May - June 2023 - 19
PLANSPONSOR - May - June 2023 - 20
PLANSPONSOR - May - June 2023 - 21
PLANSPONSOR - May - June 2023 - 2023 Plan Sponsor Of The Year Finalists
PLANSPONSOR - May - June 2023 - 23
PLANSPONSOR - May - June 2023 - 24
PLANSPONSOR - May - June 2023 - 25
PLANSPONSOR - May - June 2023 - 26
PLANSPONSOR - May - June 2023 - 27
PLANSPONSOR - May - June 2023 - 28
PLANSPONSOR - May - June 2023 - 29
PLANSPONSOR - May - June 2023 - 30
PLANSPONSOR - May - June 2023 - 2023 HSA Conference
PLANSPONSOR - May - June 2023 - 32
PLANSPONSOR - May - June 2023 - 33
PLANSPONSOR - May - June 2023 - A Personalized Approach
PLANSPONSOR - May - June 2023 - 35
PLANSPONSOR - May - June 2023 - The New Wave
PLANSPONSOR - May - June 2023 - 37
PLANSPONSOR - May - June 2023 - FIDUCIARY FORUM
PLANSPONSOR - May - June 2023 - INSIDE ANGLE
PLANSPONSOR - May - June 2023 - PLAN PROFILE
PLANSPONSOR - May - June 2023 - Cover3
PLANSPONSOR - May - June 2023 - Cover4
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