Reader Responses July 20, 2015

SURVEY SAYS: Managing Multiple Retirement Plans

Plan sponsors may have more than one retirement plan to manage—a defined benefit plan and a defined contribution plan, two types of defined contribution plans, a qualified plan and a nonqualified, etc.
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Last week, I asked NewsDash readers, “Does your firm, or do have clients that, sponsor multiple retirement plans?” I also asked about certain aspects of plan administration.

More than three-quarters (75.5%) of respondents serve in a plan sponsor role, while 21.2% serve as TPAs/recordkeepers/investment managers, and 3% are CPAs.

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The vast majority (90.9%) of responding readers sponsor, or have clients that sponsor, multiple retirement plans. Of those that do, 22.6% have separate personnel working for the plan sponsor that handle each plan type, while 74.2% do not, and 3.2% do not know.

About one-quarter (25.8%) of respondents that sponsor multiple plans or have clients that sponsor multiple plans reported there are separate committees for each plan, while 64.5% reported there are not, and 9.7% do not know. Recordkeeping and administration are bundled for each plan with one plan provider, according to 48.4% of respondents, and are not bundled, according to 51.6%.

One-quarter (25.8%) of responding readers said participant education/communication is combined for each plan, while two-thirds (67.7%) said it is not, and 6.5% do not know.

Verbatim comments from readers clearly show managing multiple retirement plans is complicated, with one reader summing it up as, “If our plans had Facebook accounts, each relationship status would be ‘It’s complicated.’” But, a few expressed confidence in their ability to handle it; “Plan sponsors have been multi-tasking since way before multi-tasking was ‘cool.’” A couple shared information about how they handle education and committees. Editor’s Choice goes to the reader who said: “Yep, I do and do it quite well…despite having one hand tied behind my back by the plague of overwhelmingly odious regulations and the scourge of auditors anally focused on the barn door rather than where the horse is heading.”

A big thank you to all who participated in the survey!

Verbatim 

As a Human Resources Outsourcing firm, we have many clients that have multiple types of retirement plans. Unfortunately, a lot of them have trouble figuring out one plan let alone two.

Most of our clients with multiple plans offer a DC/DB combination. However, we have a control group with two separate DC plans who share a common fiduciary. Based on my anecdotal experience with her, this is a function that shouldn't be combined, as she has difficulty tracking everything involved.

We have multiple DB plan formulas for our Plan Sponsors. We are a local government DB administrator. It is very complex.

We have a smaller population of about 2200 employees. Even though we have separate committees, they are comprised of the same members. Then there's me handling administration for both plans and keeping the committee updated. We do more education for the 401(k) plan and sometimes will include information about the pension plan. We do a lot of communication around both plans as we bring it all together to show how we are helping to prepare employees for retirement.

Cash Balance Plan for partners only (no education, separate recordkeeping) Profit Sharing and 401(k) plan for partners and staff Associates' 401(k) plan for associate attorneys Profit Sharing and 401(k) plans bundled recordkeeping and education.

If our plans had Facebook accounts, each relationship status would be "It's complicated."

The qualified defined contribution plan communication is combined. The non-qualified plan and defined benefit plan have separate communications.

Yep, I do and do it quite well...despite having one hand tied behind my back by the plague of overwhelmingly odious regulations and the scourge of auditors anally focused on the barn door rather than where the horse is heading.

We use the same independent TPA as recordkeeper for both plans, and use the same carrier for investments for both plans. It's always tougher to administer the DB plan, especially coordinating between the carrier and TPA. We use the same financial rep for both plans.

Plan sponsors have been multi-tasking since way before multi-tasking was "cool"...

NOTE: Responses reflect the opinions of individual readers and not necessarily the stance of Asset International or its affiliates.

Deals and People July 17, 2015

Retirement Industry People Moves

Deana Calvelli joins Lockton; Brett Dutton comes to PNC Institutional Asset Management; Dave Anders & Associates affiliates with PlanMember Securities Corporation.
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Lockton has opened a new retirement practice in its Philadelphia office, with Deana Calvelli as vice president of retirement services for the firm’s Northeast region. The practice will advise clients on 401(k) and other retirement plans.

Calvelli is responsible for overseeing the retirement practice, and serving clients in the areas of fiduciary governance, financial wellness and retirement outcomes, administration oversight, and investment selection and monitoring.

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Calvelli brings more than 25 years of experience in the retirement services sector to Lockton. She held strategic roles at Buck Consultants and Wells Fargo and, most recently, operated her own consulting firm, Calvelli Consulting.

Calvelli holds a bachelor’s degree in economics from Duke University, as well as designations as a Certified Employee Benefits Specialist and an Accredited Investment Fiduciary (AIF). She maintains FINRA Series 7, 63, and 65 licenses. She is also a member of the Forum of Executive Women and a LEADERSHIP Philadelphia Fellow.

NEXT: Brett Dutton comes to PNC Institutional Asset Management.

Brett Dutton has joined PNC Institutional Asset Management (IAM) as an asset liability solutions specialist. In his new role, he works with the IAM team to determine product suitability for customers and prospects, and educates market teams and other bank partners on asset liability management services. His areas of focus include liability driven investing (LDI) for pensions and dynamic portfolio analysis for endowments and foundations. He reports to Debbie Kolsovsky, managing director, PNC Institutional Advisory Solutions.

Dutton, who is based in Columbus, Indiana, previously was a fixed-income analyst and actuary for Reams Asset Management, specializing in consulting on pension risk and LDI strategies. Before Reams, Dutton held positions in the actuarial field with the Ohio Public Employees Retirement System and Mercer in Columbus, Ohio.  

Dutton holds a bachelor's degree in mathematics from Grove City College, graduating first in his class, and a master’s degree in music from Pennsylvania State University. He is a Fellow of the Society of Actuaries, an enrolled actuary, and holds the Chartered Financial Analyst (CFA) designation.

NEXT: Dave Anders affiliates with PlanMember Securities Corporation.

Dave Anders of Dave Anders & Associates in New Smyrna Beach, Florida, has affiliated with PlanMember Securities Corporation as a PlanMember Financial Center. The firm provides retirement investment planning and financial education opportunities for educators and employees of nonprofits in Daytona Beach and Central Florida.

Dave Anders & Associates has more than 25 years of experience in financial planning, and has more than $125 million under management. The firm has spent the past eight years as PlanMember representatives helping their personal clients as well as school districts and nonprofits.

PlanMember, a broker/dealer and investment adviser, with a reported $8 billion in assets, specializes in the fee-based 403(b), 457(b) and 401(k) marketplace.

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