This report describes the potential benefits that allocation to alternative assets could offer a TDF’s investment portfolio, including enhanced retirement income for participants, with some case study considerations and international examples. It identifies and explains the unique challenges a fiduciary should consider when deciding to include alternatives in a TDF, as well as appropriate strategies a fiduciary may use to apply appropriate due diligence. Finally, to support and encourage this innovation, the report recommends action by DOL to clarify a fiduciary’s responsibility when including alternatives in TDFs.
This report analyzes how different lifetime income solutions can help retirees meet their lifetime income needs. It examines several options to determine how well they achieve different objectives for retirement income including stability, maximization, longevity protection, growth potential, asset preservation, cost and liquidity. It highlights the growing demand for lifetime income solutions and the need for policymakers and plan sponsors to begin to integrate these solutions into retirement plans as more plan participants come to expect their DC plans to help generate and protect income for retirement.
This final report updates and replaces CRI Working Paper 18-02, published in June 2018. This report outlines several models, based on a multi-state or regional approach, that should be explored for how states can work together to serve more than one state. Although individual states can establish their own state-sponsored retirement savings programs, the consideration of interstate arrangements offers opportunities for states to explore how they can achieve economies of scale to help minimize costs while significantly expanding access to retirement savings options.
On June 19, 2018, the Georgetown University Center for Retirement Initiatives (CRI) convened an invitation-only one-day policy forum with approximately 100 senior industry leaders, policymakers, and stakeholders to examine some of the key challenges designing a retirement savings system focused on improving long-term outcomes to strengthen retirement security for millions of Americans. This report provides a comprehensive overview of the discussion held during this event, covering innovative ideas and proposals for addressing some of the challenges faced in closing the access gap, improving the design and performance of investments in retirement savings plans, and identifying ways to build and deliver more-effective and attractive lifetime income options.
The Benefits of Achieving Economies of Scale in State-Sponsored Retirement Savings Programs: The Case for Multi-State Collaboration (Working Paper, 18-02, June 2018)
This report outlines several models, ones based on a multi-state or regional approach, that should be explored for how states can work together to serve more than one state. Although individual states can establish their own state-sponsored retirement savings programs, the consideration of interstate arrangements offers opportunities for states to explore how they can achieve economies of scale to help minimize costs while significantly expanding access to retirement savings options. This document has been updated – please refer to Policy Report 19-01.
This report highlights new analysis showing how target date funds (TDFs) can be modified to improve expected retirement income for individuals by between 11 and 17 percent with the inclusion of alternative assets. Operational issues, such as liquidity, pricing, etc. can be easily addressed today, as demonstrated by the increased use of custom funds in DC plans. Policymakers and plan sponsors should consider the inclusion of alternative assets classes in DC plans, specifically through target date structures.
This report provides an overview of how ERISA and the Tax Code, as well as securities and other laws, would apply to a state-facilitated MEP and includes sample model legislation.
This report provides an overview of the retirement security challenges facing the nation and Vermont; outlines the range of plan design options for state-sponsored retirement programs for private sector employers and employees, including legal, regulatory, and plan design considerations; and reviews some early lessons learned from other states that are in various stages of implementing new programs.
As states contemplate ways to help expand the availability and effectiveness of private sector retirement savings options, they must understand how ERISA and other federal laws would apply to any new program for the private sector.