A DC plan operates essentially as a DB plan for one person, with all the risks, costs, and responsibilities for investment performance and the decumulation of assets left to the individual saver to manage. To solve this problem, DC plans can seek to emulate the best aspects of DB plans. One of the most-successful features of DB plans that DC plans have begun to adopt is taking advantage of tools such as auto-enrollment and auto-escalation features that help workers begin to save meaningful amounts in DC plans.
Another way DC plans can learn from DB plans is by paying attention to simplicity in investment selections. An important consideration is whether the investment return of DC plans can be improved to deliver more income for the same contributions. If one dollar invested in a DB plan generates significantly more income than a dollar invested in a DC plan, that would suggest a need to explore whether greater asset diversification, including private equity, real estate, or hedge funds, can boost retirement income for the same level of contributions.
The Georgetown Center for Retirement Initiatives (CRI) held its first annual, invitation-only Policy Innovation Forum and released a new research report highlighting how target date funds (TDFs) can be modified to include alternative assets classes, and how this diversified TDF could increase the amount of annual retirement income.
A report of the Forum proceedings “Driving Change to Improve Retirement Outcomes” can be found here.
TUESDAY, JUNE 19
Driving Change to Improve Long-Term Outcomes
7:30 am – 8:00 am
Welcome and Opening Remarks
Angela M. Antonelli, Executive Director, CRI
8:00 am – 8:15 am
What Does an Aging Population Mean for Economic Growth and Investments?
- Paula Campbell Roberts, Director, Global Macro & Asset Allocation Team, Kohlberg Kravis Roberts & Co. (KKR)
- Click here to view the presentation (PDF).
- Click here to view the full KKR report.
8:45 am – 9:30 am
What is the Economic and Political Climate for Transforming How We Save for Retirement?
Moderator – Jeffrey H. Snyder, Founder & CEO, The MorningPulse Inc.
- John Harwood, Editor at Large, CNBC
- Angela Moore, Senior Editor, MarketWatch
9:30 am – 10:20 am
How is Technology Disrupting Retirement Savings?
Moderator – Han Yik, Head of Institutional Investors, World Economic Forum
- Lisa Canafax, Partner, Mercer
- Carlos Garcia, Founder & CEO, Finhabits
- Jeff Rosenberger, Ph.D., COO, Guideline
10:20 am – 10:30 am
10:30 am – 11:30 am
Are There Opportunities for Multi-State Collaboration among State-Facilitated Retirement Savings Programs?
Moderator – David C. John, Senior Strategic Policy Advisor, AARP Public Policy Institute
- Tim Burgess, former Mayor, Seattle, Washington and Member, Seattle Retirement Savings Plan Board of Administration
- John Chiang, Treasurer, State of California
- Kevin Cox, Head of Government Savings, Ascensus
- Tim Lueders-Dumont, Policy Director, Office of the State Treasurer, Vermont
- View New Working Paper: The Case for Multi-State Collaboration among State-Sponsored Retirement Savings Programs
11:30 am – 12:10 pm
12:10 pm – 1:00 pm
What Can DC Plans Learn from DB Plans?
Moderator – W. Robert Phillips, Head of Consultant Relations, North America, BNY Mellon Investment Management
- Joe Fazzino, Senior Director, Pension Investments, United Technologies Corporation
- Kevin T. Hanney – Senior Director, Pension Investments, United Technologies Corporation
- Jason Malinowski, Chief Investment Officer, Seattle City Employees’ Retirement System
- Matthew Rauseo, Vice President, AQR Capital Management
1:00 pm – 2:00 pm
Does the Addition of Alternative Assets Improve the Performance of Target Date Funds?
Moderator – David Kaleda, Principal, Groom Law Group
- Kevin Albert, Partner and Managing Director, Pantheon
- Jahiz Barlas, Ph.D., Vice President, Multi-Asset Solutions Research Group, AllianceBernstein L.P.
- David O’Meara, Senior Investment Consultant, Willis Towers Watson (View presentation)
- View New Policy Report: The Evolution of TDFs: Using Alternatives to Improve Retirement Plan Outcomes
2:00 pm – 2:50 pm
Can DC Plans Design Better Lifetime Income Options?
Moderator – Martin Noven, Executive Director, State Universities Retirement System (SURS) of Illinois
- Hank H. Kim, Executive Director & Counsel, National Conference on Public Employee Retirement Systems (NCPERS)
- Kevin Lembo, Comptroller, State of Connecticut
- Grady M. Smith, Senior Portfolio Manager and Vice President, Dimensional Fund Advisors
- Timothy G. Walsh, Senior Managing Director, Institutional Investment Solutions Distribution, TIAA