References in periodicals archive ?
Because target-date funds are so incredibly important to a retirement plan advisory practice serving defined contribution plans, and because the debate between actively managed and passively managed funds continues to heat up as lawsuits centered around fees abound, we decided to take a look at flows into passively managed vs.
is in transition from defined benefit plans to defined contribution plans. On balance, this may be a step in the wrong direction.
While net flows in defined contribution plans have been trending lower, 2015 Employee Retirement Income Security Act (ERISA) data BrightScope obtained from the Department of Labor (DOL) reveals some encouraging developments.
Paul Bettencourt, R-Houston, authored Senate Bill 1752, which would allow voters in Texas cities to decide whether to switch new public employees to defined contribution plans. Such plans are akin to 401(k)s because their funds fluctuate with the market.
"Are returns on defined contribution plans markedly lower than those on traditional defined benefit plans?" the authors asked.
The National Education Policy Center (NEPC) discloses these findings in its 2015 survey on defined contribution plans and fees.
ICMA-RC said its chief investment officer Wayne Wicker has been recognized by two investment industry organizations for his leadership and unique contributions to asset allocation strategy, investment management and defined contribution plans.
Additionally, some states and local governments have begun offering hybrid (1) and primary defined contribution plans to replace the traditional defined benefit plan.
Unlike final salary schemes, defined contribution plans do not guarantee an income, but are dependent on the fortunes of investments.
Some believe the cap only eliminates defined contribution plans as "a vehicle for wealthy individuals to convert a substantial share of their assets into tax-free retirement assets," (Bipartisan Policy Center), but the cap would also hurt those who need personal retirement savings the most.
With respect to defined contribution plans, cross testing is an "end justifies the means" or "benefit justifies the contribution" test.