Protecting Your Retirement Egg

As the economy slowly recovers from recession, many retirement industry professionals are strategizing to improve financial security for their plan participants while attempting to maintain strong returns on investments. It’s a fine line to walk when balancing security and returns, and plan sponsors have to be well-informed to maximize both, improve funded status, and reduce volatility of contributions.

In this issue’s cover story, L. Gregg Johnson, MSPA, EA, managing principal of Pensions Applications, explores a best-practices approach to managing risks in pension investing. His article highlights several recent developments in Asset-liability Modeling (ALM)—specifically Liability-driven Investing (LDI) and Dynamic Asset Allocation (DAA), and how best practices can incorporate ALM, LDI, and DAA techniques. Johnson then examines the pros and cons of each, while stressing the importance of incorporating risk management techniques in order to ensure that plan sponsors, managers, and participants achieve their goals.

Now more than ever, plan sponsors must be vigilant in protecting their plans and utilizing all available tools strategically to maximize both returns and security. Please take a close look at this issue’s cover story, Protecting Your Retirement Egg: Tools and Techniques for Pension Plan Investing for a strong analysis of some of the latest strategies.

Also inside this issue of Plan Consultant Magazine:

• Bruce L. Ashton, Fred Reish and Joshua Waldbeser (Drinker Biddle & Reath LLP) discuss the challenges of new fee disclosure regulations for recordkeepers.
• How are plan sponsors handling plan audits since regulations changed in 2009? Steven P. Kjar (vice president, Lockton Retirement Services) and Emily Powers (audit manager, CapinCrouse LLP) explore some issues still facing sponsors under the new rules.
• Josh Cohen and Ben D. Jones (defined contribution practice leader and director of defined contribution at Russell Investment Group) lay out seven attributes of excellent defined contribution plans.
• Part 2 of ACOPA Edward E. Burrows Distinguished Achievement Award winner James E. Holland, Jr.’s (Cheiron) analysis of situations where calculations for distributions after normal retirement age are necessary.
• Thinking about social media engagement? Social media marketing strategist Christine Pilch Mancini breaks down different social media tools and how they can make or break your business.
• Tech gurus Yannis P. Koumantaros (Spectrum Pension Consultants, Inc.) and Adam C. Pozek (DWC ERISA Consultants, LLC) reveal four apps that business travelers can’t live without.
• Extra features: Hear the latest updates from ASPPA’s Government Affairs Committee, get ethics advice from Lauren Bloom, tell Congress to Save My 401k, and more.