Litigation, technology dominate talk at P&I's West Coast DC conference
Skip to main content
pilogo-NEW
Subscribe
  • Subscribe
  • My Account
  • login
  • NEWS
    • Asset owners and the coronavirus
    • Alternatives
    • Consultants
    • Coronavirus
    • Defined Contribution
    • ESG
    • Frontlines
    • Hedge Funds
    • Investing / Portfolio Strategies
    • Money Management
    • Pension Funds
    • People Moves
    • Private Equity
    • Real Estate
    • Searches & Hires News
    • SECURE Act
    • Special Reports
    • WorldPensionSummit
    • Ron Schmitz
      Pandemic drives faster transition for Virginia to private markets
      Mubadala Investment Co. logo
      Mubadala draws on portfolio in coronavirus fight
      T.J. Carlson
      Texas Muni reduces downside risk during pandemic, finding opportunities now
      Scott Davis
      ‘Triage plan’ at Indiana system helped stem losses
    • A healthcare worker provides care for a COVID-19 patient in the intensive care unit at the Saint Joseph hospital in Marseille, France, on Nov. 20, 2020.
      Private equity’s health-care role draws spotlight
      John Haggerty
      Sector’s risks need to be weighed, consultant says
      Some alternative strategies struggle in first quarter following tough 2020
      Close up of Business people shaking hands, finishing up meeting, business etiquette, congratulation, merger and acquisition concept
      Cathay Innovation Partners takes minority stake in Seaya Ventures
    • Hub International continues buying spree with IBG acquisition
      Callan brings on 2 executives
      Hub International agrees to buy Plan Sponsor Consultants
      Aon names public markets solution leader
    • Michelle Dunstan
      Move to link exec pay to ESG integration growing
      The J.P. Morgan Chase logo displayed at a branch bank
      J.P. Morgan sells $13 billion of bonds in largest-ever bank deal
      John Bakarat
      Commentary: COVID-19 and real estate debt – where investors should be looking
      IACPM: Credit managers see stabilizing effect from stimulus programs
    • Pentegra joins with EPIC to offer 3(16) fiduciary services
      Joseph Healy
      Smaller DC plans place greater focus on improving financial wellness efforts
      Interest rises in keeping retiree assets in-plan
      Pentegra launches pooled employer plan
    • Michelle Dunstan
      Move to link exec pay to ESG integration growing
      Focus on human rights a challenge in China
      WTW to cut carbon footprint of OCIO portfolios by half by 2030
      SEC Commissioners Testify Before The House Financial Services Committee
      SEC shouldn’t require ESG metrics – commissioner
    • Riscura stories
      Dystopian tales explore altered retirement reality
      Joel Holsinger
      Ares wants to do good – and profit – with fund
      Girls Who Invest
      MetLife plans 3 internships for Girls Who Invest scholars
      Model home
      Resmark sees niche in buying, leasing model homes
    • Karen Karniol-Tambour
      Bridgewater appoints 2 co-CIOs to oversee new sustainable investing group
      Hedge funds post best first-quarter return since 2000
      Jason Kephart
      Managers see good times ahead in 2021
      Jev Mehmet, CEO of Brevan Howard's Coremont unit
      Brevan Howard runs $50 billion unit like BlackRock’s Aladdin
    • Supreme Court seeks government input on Gannett ERISA suit
      A British Union Jack flies in front of Big Ben
      Fee-cap changes will not alter DC investment in illiquids – PLSA
      Louisiana Firefighters puts Boston Partners on watch
      West Palm Beach Police picks up Lazard, PGIM Fixed Income
    • Invesco logo shown on the floor of the New York Stock Exchange
      watch video
      1:28
      Invesco’s bid for performance gains
      Larry Fink
      BlackRock tops $9 trillion on record inflows
      Ameriprise, Amundi add to their European rosters
      Morgan Stanley logo
      Morgan Stanley’s record quarter stained by Archegos collapse
    • Melrose Industries to plug U.K. pension deficit by selling assets
      Public plan funding inches up in first quarter
      Louisiana Firefighters puts Boston Partners on watch
      Corporate plan funding gets a boost from higher discount rates – Milliman
    • Cohen & Steers adds team for new private real estate business
      Sacha Sadan
      FCA taps LGIM executive for first director of ESG
      Tufts taps interim co-CIO as new investment chief
      Michael Zerda
      LaSalle picks head of debt and special situations
    • Paul Morrissey
      Blackstone Growth picks managing director to lead European investing
      Bills of euro, dollar and pound currencies, among others
      Ardian closes latest buyout fund at $8.8 billion
      Hand typing on stationary iPhone at an office reception desk
      Private equity’s taste for tech spurs $80 billion deal spree
      Vista Equity promotes 2 to leadership roles on 2 funds
    • Cohen & Steers adds team for new private real estate business
      Australia’s Centuria makes takeover bid for Primewest
      CalSTRS indutrial property
      Investors hungry for industrial properties
      Tim Wang
      GLP names co-president of logistics, industrial real estate for China
    • Andy Schreiner
      New PEPs targeting firms without retirement plans
      Jackie Walorski
      Contribution catch-up for caregivers gaining favor
      Neal and Brady
      Retirement security could be only issue both sides accept
      Retirement cartoon
      Hopes rising for retirement readiness in 2021
    • A coin representing Bitcoin cryptocurrency in the U.K.
      Cryptocurrency and digital assets
      Corporate pension contributions
      Eddy Awards 2021
      COVID-19: One year in
    • U.S. still a key market for investors
      Collected coverage of P&I's 2020 WorldPensionSummit
      Pedestrians pass a large advertisement on the Arndale Center shopping mall reading 'Act now to avoid a local lockdown' in Manchester, England
      COVID-19 puts new opportunities and risks on the agenda - WPS panelists
      Screens display stock price information over the trading floor of the NYSE Euronext exchange in Paris
      Private assets will continue to grow in portfolios – WPS panelists
  • Data
    • Research Center
    • Searches & Hires Database
    • Searches & Hires News
    • RFPs
    • Charts / Infographics
    • Sponsored Research
    • Trackers
    • Q2 2020 searches and hires overview report
      Q2 2020 money manager M&A activity summary
      Q2 2020 legal overview report
      Q1 2020 searches and hires overview report
    • South Carolina discloses up to $495 million in commitments
      Fonds de Reserve looking for dollar-denominated corporate debt managers
      Arizona taps BNY Mellon as custodian
      Alameda County Employees hires Parametric for cash overlay services
    • South Carolina discloses up to $495 million in commitments
      Fonds de Reserve looking for dollar-denominated corporate debt managers
      Arizona taps BNY Mellon as custodian
      Alameda County Employees hires Parametric for cash overlay services
    • Emerging Market Debt Manager Services
      Real Assets Consultant
      Passive Investment Management Services
      Active Extended Global Credit Manager Search
    • Private real estate funds continue rebound
      Managed account adoption stalls in 2020
      U.S. bonds have worst quarterly return since 1981
      Stable value retains edge over money market funds
    • Institutional Investors: Shared Expectations, Divergent Paths
      Global Investor Study 2016
      Workplace Financial Wellness
    • U.S. Endowment Returns Tracker
      Pension Fund Returns Tracker
      Earnings Tracker
      Corporate Pension Contribution Tracker
  • Insights
    • Opinion
    • White Papers
    • Industry Voices
    • Letters to the Editor
    • Partner Content
    • Publisher's Update
    • Marcie Frost
      CalPERS: Urgency underscores all areas of providing retirement security
      BPTW cartoon
      P&I’s Best Places to Work marking a milestone
      CalPERS cartoon
      Urgency underscores CalPERS' search for a CIO
      Multiemployer plans cartoon
      Money — but no fixes — for multiemployer plans
    • Bipsync Client Stories: RMS in Action at Pensions and Superannuation Funds
      COVID-19 Makes LP Portfolio Management More Important Than Ever
      China: the outlook is bright for longer-term investors
      Finding Differentiation in Securitized Assets
    • John Bakarat
      Commentary: COVID-19 and real estate debt – where investors should be looking
      Jake Remley
      Commentary: Inflation expectations vs. reality in the bond market
      Greg Shea and Steven Kindred
      Commentary: The solution for yield-seeking allocators may be hiding in plain sight
      Jim Park
      Commentary: Asian Americans, Pacific Islanders face ‘bamboo ceiling’ in money management
    • Marcie Frost
      CalPERS: Urgency underscores all areas of providing retirement security
      Writer using a typewriter
      OCIO industry needs to adopt GIPS
      Writer or journalist workplace. stock illustration
      Even as it assails China, Trump administration emulates it
      Skeptical of Main Street support for proxy adviser proposal
    • P&I Content Solutions
      Research for Institutional Money Management
      P&I Content Solutions
      Top questions for institutional investors
      Sponsored Content By Newton Investment Management
      Growth and Innovation in Emerging Markets
      P&I Content Solutions
      In Challenging Markets, Systematic Global Macro Strategies Could Hold Opportunity
    • Help us help you by supporting quality journalism
      You Must Believe in Spring
      Everything Must Change
      Tomatoes & Investments
  • Multimedia
    • Videos
    • Webinars
    • Polls
    • Slideshows
    • Charts / Infographics
    • Invesco logo shown on the floor of the New York Stock Exchange
      watch video
      1:28
      Invesco’s bid for performance gains
      watch video
      1:23
      The passive fixed-income glut
      watch video
      1:38
      Is it time for DC plans to embrace private equity?
      watch video
      5:39
      The coronavirus pandemic: One year later
    • New Outlook on Income: A Framework for Evaluating DC Retirement Income Solutions
      Investing in infrastructure at the right price
      Understanding the PEP Evolution
      Divest or engage?
    • POLL: Cryptocurrency investing
      POLL: The Biden infrastructure plan
      POLL: Retirement income solutions
      POLL: Working after the pandemic
    • view gallery
      9 photos
      Coronavirus and the markets
      view gallery
      22 photos
      The 1,000 largest retirement funds: 2020
      view gallery
      10 photos
      Outlook 2020
      view gallery
      10 photos
      2019 as seen through the eyes of Roger
    • By the Numbers for April 2021
      Graphic: Invesco’s bid for performance gains
      Graphic: The state of DC plans
      Private real estate funds continue rebound
  • Events
    • Conferences
    • Webinars
    • DC Investment Lineup Virtual Series
      ESG Investing Virtual Series
      Private Markets Virtual Series
    • New Outlook on Income: A Framework for Evaluating DC Retirement Income Solutions
      Investing in infrastructure at the right price
      Understanding the PEP Evolution
      Divest or engage?
  • Careers
  • Research Center
MENU
Breadcrumb
  1. Home
  2. DEFINED CONTRIBUTION
October 24, 2018 01:00 AM

Litigation, technology dominate talk at P&I's West Coast DC conference

Robert Steyer
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Hal Bjornson emphasized the importance of 'taking the pulse' of participants.

    Fine print and refined data took center stage at the Pensions & Investments West Coast Defined Contribution conference, as plan executives learned of ideas and ways to improve participation, increase participant contributions, and protect plans from lawsuits and cyberattacks.

    They received advice from fellow executives, service providers, attorneys and researchers during the conference, held Oct. 21-23 in San Diego.

    Several speakers encouraged attendees to make greater use of data to improve their plans by better understanding the needs of different segments of their employees and retirees.

    "It can't be emphasized enough how important it is to take the pulse" of participants, said Hal Bjornson, client portfolio manager, multiasset solutions for J.P. Morgan Asset Management, during a session on "Using DC Data Analytics to Customize Plan Design."

    Detailed data analysis helped dispel some assumptions about participant behavior, said Phillip Blair, manager of deferred compensation for the San Diego County Treasurer-Tax Collector's Office.

    When the county's 457(b) and 401(a) plans exhibited negative cash flow, the county conducted a survey of the plans, which have combined assets of $1.6 billion and 18,065 participants.

    Although plan officials had speculated the top reason for the problem would be participants saying they didn't have enough money, the results were quite different. "I didn't know I could" turned out to be the main reason people didn't contribute, Mr. Blair said. "It is too complicated" was the second reason.

    As a result, plan executives reworked education communications with a "heavy use of imagery," Mr. Blair said. Since 2014, the percentage of younger employees participating in these supplemental plans has increased substantially.

    Mr. Blair found plan information that contained images of county employees, including their names and jobs, spurred greater interest. He noted some employees reported receiving multiple emails from peers, asking about the plans.

    Carolyn Wood said she needed to go beyond record-keeping data to get a better idea of how the two defined contribution plans run by Charter Communications Inc. could do a better job for the 90,500 participants.

    "How do we help employees with financial wellness" was the reason Charter hired a consultant to help prepare workforce analytics — enabling Charter to identify certain groups of participants so it could conduct pilot projects that, in turn, could lead to broader policies for the plans that have $5 billion in aggregate assets.

    The data will help Charter determine, for example, if location or health-care premiums impact retirement savings, she said. Other matters for measurement include hardship withdrawals, the use of health savings accounts and home prices.

    "I hope it will result in targeted programs," said Ms. Wood, senior director, retirement benefits, at the Stamford, Conn.-based company.

    Read the fine print

    Not surprisingly, fine print plays a role in litigation. Sponsors, said ERISA attorney Nancy Ross, could reduce their vulnerability if they increase transparency in describing plan features.

    "So much of my work is in accurate communication," Ms. Ross said.

    For example, revenue sharing and stable value funds are popular targets for the tort bar. "Stable value funds are a valuable part of the investment lineup," said Ms. Ross, partner and co-chair of the ERISA litigation practice at Mayer Brown LLP, Chicago, in a keynote address Oct. 23.

    To reduce the chance of being sued, sponsors must be "as transparent as you can," she said. "Get competitive bids."

    The same approach hold true for revenue sharing. "Be transparent and monitor for competitiveness," she said. "There's nothing wrong with revenue sharing."

    Fine print plays a crucial role in the field of cybersecurity, most notably when sponsors sign contracts for protection and for cyber insurance.

    Margaret Daun, chief corporation counsel for Milwaukee County, told attendees cyber insurance contracts require careful reviews in the relatively new field.

    For example, is the insurance capped at a certain amount, she asked during a panel discussion on "Cybersecurity Focus: Protecting The Plan Data."

    Other questions sponsors must ask, she said, include: Does the insurance cover cyberattacks against individuals, or the plan members in aggregate? What are the deductibles? What is the cost of credit monitoring and/or the cost of notification of cyberattacks? If a cyberattack is caused in part by a user's negligence, who decides and who pays?

    Ms. Daun said Milwaukee County uses multiple tools to thwart hacking, such as conducting third-party reviews of plans covering audits, vulnerability scans and testing if outsiders can penetrate firewalls.

    She also noted there are trade-offs when considering how rigorous internal cybersecurity program must be. Easy access for participants increases the risk of cyberattacks, but stricter control could dissuade employees from using a plan's web-based entry point, she said. "What is the appropriate balance?" she asked.

    "There has to be a balancing act between security and customer service," added Keith Overly, executive director of the $13.4 billion Ohio Public Employees Deferred Compensation Program, Columbus.

    Mr. Overly said his plan, which has cyber insurance, conducts annual cybersecurity audits and quarterly tests of the plan's ability to thwart attacks, and it has developed an incident response plan to know who is responsible for responding to a data breach.

    Using technology

    Another look at technology — the kind that can improve participation and contributions — was presented as several speakers discussed improving retirement tools.

    "Retirement is not a set-it-and-forget-it journey," said Michael Rosenberg, senior vice president, head of retirement investment solutions, at First Eagle Investment Management. "Engagement is needed to optimize retirement outcomes. Technology can be engaging."

    First Eagle is working with the Center for Retirement Research at Boston College to develop technology tools to encourage greater participation in retirement plans.

    The goal is to develop technology that's easy to use and works every time, said Mr. Rosenberg during the panel session, "Innovative Retirement Technology Tools to Engage Participants and Increase Retirement Savings."

    Technology, he added, should create incentives for participants to return to a sponsor's website, achieve goals or take action, he said.

    "Technology will not replace the need for human interaction," he added.

    Human interaction was explored by the Oct. 23 afternoon keynote speaker, Hal Hershfield, associate professor of marketing at UCLA's Anderson School of Management.

    While praising plan-design strategies such as auto enrollment and auto escalation, he said "there's room for more interventions" as a complement to such changes.

    Mr. Hershfield, a psychologist, has studied how people think of themselves in the present vs. their future selves. The research could have implications for retirement plan management,

    In one study, for example, Mr. Hershfield said people were asked if they wanted to enroll in a "recurring deposit program" with three choices — $150 per month, $35 per week or $5 per day. The total amount participants would deposit is the same, but 7% chose the first amount, 11% chose the second and 30% selected the third. In this case, the results illustrate peoples' desire "to make the present self feel less pain," he said.

    Also at the conference, Karin Brodbeck, former director, retirement investments, Nestle USA, accepted the annual Lillywhite Award, sponsored by the Employee Benefit Research Institute.

    Lori Lucas, president and CEO of EBRI, presented the award to Ms. Brodbeck.

    "When it comes to creating ways to improve retirement security, we don't need the perfect solution, we need good solutions," Ms. Brodbeck said.

    EBRI honored her not only for creating cost-efficient, best-in-class investment options for Nestle participants but also for sharing her knowledge and experience with industry peers.

    The award is named after Ray Lillywhite, a pioneer in the pension field, to honor employee benefits officials for their lifetime contributions to economic security.

    Related Articles
    Cybersecurity protection essential for data as well as assets
    9 awarded Excellence and Innovation Awards from P&I
    Panel discusses realities of thwarting DC cyberattacks
    P&I celebrates DC innovators
    Judging the Excellence & Innovation Awards
    Different approaches to plan design discussed at WorldPensionSummit
    Record-keeping fee charge against Franklin dropped; other parts of suit to cont…
    Plaintiffs challenge Atrium Health for claiming government exemption from ERISA
    Recommended for You
    Pentegra joins with EPIC to offer 3(16) fiduciary services
    Pentegra joins with EPIC to offer 3(16) fiduciary services
    Smaller DC plans place greater focus on improving financial wellness efforts
    Smaller DC plans place greater focus on improving financial wellness efforts
    Interest rises in keeping retiree assets in-plan
    Interest rises in keeping retiree assets in-plan
    Innovations in DC: Helping Supercharge Retirement Outcomes
    Sponsored Content: Innovations in DC: Helping Supercharge Retirement Outcomes
    sponsored
    Events
     
     
    Sponsored
    White Papers
    Bipsync Client Stories: RMS in Action at Pensions and Superannuation Funds
    COVID-19 Makes LP Portfolio Management More Important Than Ever
    China: the outlook is bright for longer-term investors
    Finding Differentiation in Securitized Assets
    Green and sustainable bonds in emerging markets
    Portfolio Protection: One Size Fits None
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    April 5, 2021 Page One

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    pilogo-NEW
    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    150 N. Michigan Ave.
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • NEWS
      • Asset owners and the coronavirus
      • Alternatives
      • Consultants
      • Coronavirus
      • Defined Contribution
      • ESG
      • Frontlines
      • Hedge Funds
      • Investing / Portfolio Strategies
      • Money Management
      • Pension Funds
      • People Moves
      • Private Equity
      • Real Estate
      • Searches & Hires News
      • SECURE Act
      • Special Reports
      • WorldPensionSummit
    • Data
      • Research Center
      • Searches & Hires Database
      • Searches & Hires News
      • RFPs
      • Charts / Infographics
      • Sponsored Research
      • Trackers
    • Insights
      • Opinion
      • White Papers
      • Industry Voices
      • Letters to the Editor
      • Partner Content
      • Publisher's Update
    • Multimedia
      • Videos
      • Webinars
      • Polls
      • Slideshows
      • Charts / Infographics
    • Events
      • Conferences
      • Webinars
    • Careers
    • Research Center