Products September 5, 2018

New ICI Website Takes on Myths About America’s Retirement System

FactsOnRetirement.org also offers tips on saving and highlights ICI research.

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The Investment Company Institute (ICI) has launched a new website, FactsOnRetirement.org, which highlights its research and suggests that America’s retirement system is strong.

The site takes on myths about the system and offers tips for those who want to learn more about saving for retirement.

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“ICI has a team of experts dedicated to studying the U.S. retirement system, and FactsOnRetirement will help make their work more readily available and easily accessible to the growing body of academics, policymakers and the public who are engaged on this important issue,” says ICI President and CEO Paul Schott Stevens. “Whether you’re new to this issue or a seasoned expert, we believe this site will be a valuable resource that shows how we can build on the strengths of the current system to enhance retirement savings and security in the United States.”

The site has four sections. The “Retirement by the Numbers” section highlights ICI research. The section notes that total retirement assets have increased from $469 billion in 1975 to $28 trillion today, seven times as much, per household, after inflation.

The “Myth vs. Fact” section dispels some misleading claims about the retirement system. For instance, while it is often said that most workers are not covered by a workplace retirement plan, nearly three-quarters of individual tax filers with incomes of $20,000 or more and joint filers with incomes of $40,000 or more participate in retirement plans either directly or through a spouse.

The “Tips for Savers” offers a step-by-step explanation of how workers can take better advantage of workplace retirement plans, and the “Additional Resources” directs viewers to more extensive research and source materials that can be found at ICI.org.

Administration September 4, 2018

Segal Group Recommends Steps for DC Plan Cybersecurity

Among other things, it is recommended that plan sponsors minimize requests for and use of personally identifiable information and review recordkeepers' security procedures.

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Because the personally identifiable information (PII) that defined contribution (DC) plans safeguard is a tempting target for cybercriminals, it is imperative for these plans to protect themselves from breaches of their data, The Segal Group says.

Failures could occur when sponsors exchange PII with recordkeepers or other service providers. Therefore, the firm recommends nine steps plans can take to hedge against cybersecurity risk:

  • Create an information security policy and an incident-response plan.
  • Minimize requests for and use of PII
  • Train staff regularly
  • Assess the information technology (IT) environment
  • Mandate use of encryption for data-at-rest and data-in-motion
  • Assess recordkeepers’ technology
  • Review recordkeepers’ security procedures
  • Set up and regularly review system activity logs
  • Maintain adequate levels of cyber liability protection.

“Implementing an effective framework for managing DC plan data security risks will strengthen the plan’s control environment and may further improve stakeholder confidence,” says Julian Regan, senior vice president of Segal Marco Advisors, the investment solutions provider of The Segal Group.

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