Retirement Plans & Benefits
401(k) and Retirement Programs: Adding Value and Limiting Liability
Retirement offerings are essential to helping employers attract and retain top talent, but litigation around these programs – especially 401(k) plans – has skyrocketed in recent years. Smart strategies for selecting investment options and vehicles and managing expenses are critical to addressing potential liability and adding value. Just as critical is the ability to identify trends in the retirement plan marketplace that could enhance value for participants or be the next litigation wave against plan sponsors. This session provides concrete action steps to enhance the ability of financial professionals responsible for retirement plan investments to add value for plan participants and avoid problems for plan sponsors.
Gisèle Sutherland, Associate General Counsel, VP, BMO Financial Group
Jennifer Eller, Principal, Groom Law Group
Key Considerations with Alternative Investments for Pension Plans
When considering whether to add alternative investments to the overall investment strategy of a company’s pension assets, practitioners must weigh the advantages against the potential risks. Within a case study framework this session explores the legal and tax implications of using alternative investments as part of an investment strategy for pension assets, including common terms in agreements, best practices for institutional investors, side letter provisions to negotiate with investment funds, and strategies to minimize risk exposure to unrelated business income tax (UBTI).
Kendall Frederick, CTP, FP&A, Director, Enterprise Risk Management, Hanesbrands Inc.
Todd Solomon, Partner, McDermott Will & Emery LLP
Brian Tiemann, Partner, McDermott Will & Emery LLP
Proven Partnering Practices for Best-in-Class Retirement Programs
The challenge of managing costs, reducing risk and ensuring compliance, within a complex regulatory and legislative environment while still achieving high participant satisfaction is a great one. This case study explores the dynamics of treasury, finance and human resources partnering techniques utilized by PATH, an international nonprofit organization and leader in global health innovation. Attendees of this session walk away with best practices that generate a 98% participation rate and high asset retention, including financial wellness programs, while building a framework for measuring the success of the 401(k) plan and strategies to effectively communicate with participants.
Mary Ellen Mullen, Principal, Bridgebay Consulting LLC
A Dose of OCIO: From Bayer to Covestro Without the Headache
Prior to 2015, the German-based pharmaceutical giant, Bayer, operated multiple internal business divisions including Health Care, Crop Science and Material Science. Due to a renewed focus on health care and crop science, Bayer initiated a spinoff of the $12.3 billion-dollar Material Science division to form Covestro in September of 2015. This case study focuses on the activities surrounding the $500 million-dollar ERISA qualified defined benefit pension assets that became the responsibility of the new treasury team within Covestro. Dave Montgomery, CTP, describes the internal decision-making process behind hiring a 3(38)-discretionary investment manager, and his experience with the model over the course of the relationship. Andrew Wozniak, head of Fiduciary Solutions within BNY Mellon, discusses the transition through the lens of governance, the regulatory environment, asset allocation (de-risking), the impact of funded status and active/passive management options.
Andrew Wozniak, CFA, Head of Fiduciary Solutions, BNY Mellon
David Montgomery, CTP, Head of Treasury & Insurance, COVESTRO LLC
Managing Fiduciary Risk with Retirement Plan Innovation
DC plan sponsors are increasingly looking for ways to mitigate the fiduciary and litigation risks associated with managing a DC plan. In addition plan participants and sponsors alike are concerned with reducing financial stress and ensuring retirement goals are achievable. To address these objectives and others over the last decade many plan sponsors have changed their relationship with their investment advisor to what the industry refers to as a “delegated” or “OCIO” or “3(38)” model which really means delegating investment authority to a third party to act as 3(38) investment fiduciary. This session highlights some of the recent DC plan trends, explain how a delegated investment model works and what the primary benefits are for both plan sponsors and participants.
Forest Banks, Principal, Mercer