Our regular Think Tank sessions are designed to address our clients’ most pressing problems.
Please indicate what DC and decumulation issues you would be interested to know more about.
DC Legal Forum
Prior to founding the Decumulation Institute in March 2014, Dr. Por—Eckler’s Director of DC Strategies at the time—participated in a DC legal forum featuring nine large benefits law firms. The discussion focused on fiduciary issues, including the question of whether sponsors should assist their members’ in decumulation decisions.
The surprising consensus was that if regular prudence—already in place for most corporate DC plans—was followed, assisting members in this way would pose only marginal additional fiduciary risks.
Additional recent discussions with the legal profession indicate that legal advice concerning sponsors’ decumulation involvement is likely to shift. Also, the first time in its history, CAPSA (Guidelines #8) started thinking through the information members should receive prior to decumulation decisions. This is good news for DC retirees, whose numbers will rapidly swell in the coming years.
Consequently, we expect that sponsors’ decumulation role will be arrived at through trial and error, and will reflect the existing balance between their competing desires of assisting members and mitigating fiduciary risks and expenses.
Of course, evolution’s outcomes are unpredictable. They depend on sponsors’ reactions, changes in the regulatory framework and societal expectations—all subject to continual change.
If as plan sponsor, you are interested in more details on the issues discussed in DI Think Tanks and Forums, or any of related topics (benchmarking current and best decumulation practices, longevity risk management, member communications and application of behavioural economics, interpretation of CAPSA Guidelines No. 8, etc.), we would be pleased to meet in person or arrange a conference call through e-mail. Prior to such meeting DI will send relevant material to guide such discussions.