Pension planning these days often involves managing the past as well as the future. Pension plans are inherently long-term creations, and the promises of our predecessors, written in plan texts, remain in effect for this generation to manage—or find a way to dismantle. If we step back, we can view the old and new pension […]
CAP sponsors and retiring plan members face the downside of economic and market cycles—but there is hope. Imagine that you are about to retire under the capital accumulation plan (CAP) where you work, and that the conditions for your retirement are ideal. For most plan members, this scenario would include good health, a paid-off mortgage […]
Plan sponsors should focus on managing members’ expectations, not just on benefits adequacy. Whether liability driven investing (LDI) is a new idea or an old one dressed up in new jargon, it’s usually associated with defined benefit (DB) plans. Does LDI make sense for capital accumulation plans (CAPs)? If so, what does it mean? In […]
Communicating to plan members is tough. Here’s how some plan sponsors overcame their top 10 challenges. Imagine you are in charge of the retirement plan where you work. It’s your job to explain to employees how they can receive “free” money today toward a more comfortable retirement later. All you want them to do is […]