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Plan Sponsor Council of America (PSCA)

PSCA Honors Nancy Gerrie and Robert C. Merton with Lifetime Achievement Awards
Plan Sponsor Council of America (PSCA) | April 5, 2022

This prestigious award is given annually to individuals for their noteworthy contributions to the defined contribution industry.

 

Arlington, VA (April 5, 2022) – Nancy Gerrie and Robert C. Merton will each be awarded the Plan Sponsor Council of America’s 2022 Lifetime Achievement Award at its National Conference on April 28, 2022, in Phoenix, AZ.  Winners of PSCA’s Lifetime Achievement Award are nominated by PSCA members and then voted on by the PSCA leadership committee. Previous award recipients include Phyllis Borzi, Former Assistant Secretary of Labor; Dr. Zvi Bodie, Professor Emeritus at Boston University; Cindy Hounsell, President of WISER, the Women’s Institute for a Secure Retirement; Anna Rappaport, founder of Anna Rappaport Consulting; Nancy Webman, retired editor of Pensions & Investments; Karen Barnes, managing counsel for McDonald’s Corp.; and David Booth, Founder and Executive Chairman of Dimensional Fund Advisors.

Nancy Gerrie
Nancy Gerrie has counseled plan sponsor clients on a variety of retirement plan and employee benefit plan matters during her more than 30 years as an attorney. Her clients describe her as practical and innovative as well as gifted at explaining complex ERISA matters. She has been formally recognized numerous times for her accomplishments. In addition to her professional accomplishments, Ms. Gerrie has advocated for women’s equality and inclusion at every level of the legal profession. Ms. Gerrie has served as a role model and mentor to many young women in the benefits field, elevating their careers and benefiting the retirement community as a whole.

Ms. Gerrie has also been a tireless volunteer for PSCA, helping to create many of the resources used by our members today. “Nancy has always been willing provide her expertise in webinars, National Conference presentations, and magazine articles. She has been generous in sharing her time and intellectual capital and never hesitated to say yes to PSCA when asked for support,” said Tobi Davis, PSCA’s Director of Operations.

Robert C. Merton
Robert C. Merton, PhD, is the distinguished professor of finance at the MIT Sloan School of Management and professor emeritus at Harvard University. He also serves as Resident Scientist at Dimensional. Dr. Merton received the Alfred Nobel Memorial Prize in Economic Sciences in 1997 for a new method to determine the value of derivatives.

For more than 50 years, Dr. Merton has revolutionized both the theory and practice of finance. Always in pursuit of remedies for complex financial problems, Dr. Merton’s pioneering contributions have shaped a variety of financial innovations – from lifecycle finance, optimal intertemporal portfolio selection, and capital asset and options pricing to helping promote, protect, and improve retirement systems around the globe. He has been passionate about the efficient design of retirement systems in his research and education. Dr. Merton has been featured in myriad academic journals and media outlets, and his ongoing work has positively impacted the world of retirement for generations to come.

Dr. Merton has shared his expertise with PSCA members during webinars and National Conference presentations with extremely positive audience feedback. “PSCA appreciates Dr. Merton’s willingness to share his insights with our members and we are pleased to bestow this honor on such a distinguished member of the retirement community,” said Will Hansen, PSCA’s Executive Director.

 

About the Plan Sponsor Council of America

The Plan Sponsor Council of America (PSCA), part of the American Retirement Association (ARA), is a diverse, collaborative community of employee benefit plan sponsors, working together on behalf of millions of employees to solve real problems, create positive change, and expand on the success of the employer-sponsored retirement system. With members representing employers of all sizes, we offer a forum for comprehensive dialogue. By sharing our collective knowledge and experience as plan sponsors, PSCA also serves as a resource to policymakers, the media, and other stakeholders as part of our commitment to improving retirement security for millions of Americans. For more information, visit www.psca.org.

 

Disclosures

Robert Merton provides consulting services to Dimensional Fund Advisors LP.

 

Media Contact:

Hattie Greenan

Director of Research and Communications

Plan Sponsor Council of America (PSCA)

540.323.7828

[email protected]

 

A New Look for HSAs – Retirement Savings
Plan Sponsor Council of America (PSCA) | August 20, 2020

PSCA’s 2nd annual HSA survey finds design improvement amid continuing concerns.

Arlington, VA – More than half of employers (51.5%) now position the Health Savings Account (HSA) as a retirement savings vehicle according to the Plan Sponsor Council of America’s second annual HSA benchmarking survey, sponsored by Empower Retirement, reinforcing the notion that HSAs can be a powerful retirement savings tool.

However, employers remain concerned about how to best explain HSA benefits to employees – employee education topped the list of HSA concerns for the second year in a row, though the percentage indicating so did drop five points this year to just more than half of respondents.  While the top education priority for nearly half of survey respondents is explaining the HSA tax preferences, 20 percent target contribution limits as the primary goal.

“While HSAs have been around for more than a decade and a half, employers and participants are only just coming to appreciate their power as an additional way to save for retirement,” said Jack Towarnicky, principal researcher for the American Retirement Association (ARA). “Employers need continued support in explaining the unique benefits of HSAs to employees – aligning it with their retirement savings programs rather than solely as a separate health benefit can help overcome some of these education barriers.”

Offering the same, or some of the same, investment options in the HSA program as in the 401(k) plan can help ease the education barrier around HSAs. However, only four percent of employers are currently doing so.  Among the 15% that would like to, provider capability (or lack thereof) is the primary reason they are unable to at this time. This is an opportunity for continued innovation with HSAs and retirement plan providers. 

“Employers and employees are still learning about the advantages of using HSAs as a retirement savings vehicle,” said Tina Wilson, Senior Vice President Chief Product Officer at Empower Retirement. “As healthcare costs continue to rise, we want to help employees understand the best way to use these healthcare savings accounts and to begin saving specifically for their healthcare expenses in retirement. Our challenge is helping workers understand that HSAs can be part of a multi-pronged retirement plan.”

Additional survey findings include:

  • The average participant contribution in 2019 was $2,595, the same as in 2018 while the average account balance at the end of 2019 was up slightly from a year ago, at $5,627
  • The vast majority of responding organizations (83.8%) offer investment options for HSA contributions, though more than 80 percent require a minimum balance of at least $1,000 to invest assets.
  • Nearly a third of organizations automatically enroll employees in the HSA if they enroll in the HSA-qualifying health option but fewer than ten percent of organizations use or suggest a default savings rate.
  • While education occurs primarily at open enrollment for the vast majority of respondents, a growing number are doing so at other times throughout the year.
About the Survey

The data reported is from 181 employers that offered an HSA-qualifying health option in 2019. The full report is available on PSCA’s website.

About the Plan Sponsor Council of America

The Plan Sponsor Council of America (PSCA), part of the American Retirement Association (ARA), is a diverse, collaborative community of employee benefit plan sponsors, working together on behalf of millions of employees to solve real problems, create positive change, and expand on the success of the employer-sponsored retirement system. With members representing employers of all sizes, we offer a forum for comprehensive dialogue. By sharing our collective knowledge and experience as plan sponsors, PSCA also serves as a resource to policymakers, the media, and other stakeholders as part of our commitment to improving retirement security for millions of Americans. For more information, visit www.psca.org.

About Empower Retirement

Headquartered in metro Denver, Empower Retirement administers $679.8 billion in assets for more than 9.7 million retirement plan participants as of June 30, 2020.[1] It is the nation’s second-largest retirement plan recordkeeper by total participants. Empower serves all segments of the employer-sponsored retirement plan market: government 457 plans; small, midsize and large corporate 401 (k) clients; non-profit 403 (b) entities; private-label recordkeeping clients; and IRA customers. For more information please visit empower-retirement.com and connect with us on Facebook, Twitter, LinkedIn and Instagram.

 

[1] Information refers to the business of Great-West Life & Annuity Insurance Company and its subsidiaries, including Great-West Life & Annuity Insurance Company of New York and GWFS Equities, Inc. GWLA’s consolidated total assets under administration (AUA) were $679.8B. AUA is a non-GAAP measure and does not reflect the financial stability or strength of a company. GWLA’s statutory assets total $50.1B and liabilities total $48.8B. GWLANY statutory assets total $1.68B  and liabilities total $1.57B.

 

Media Contacts

Hattie Greenan, Director of Research and Communications, Plan Sponsor Council of America (PSCA)

540.323.7828 | [email protected]

Are 401(k) Menus Out of Balance?
Plan Sponsor Council of America (PSCA) | June 17, 2020

PSCA and NAPA surveys find gaps in focus, diversification, prioritization in menu review and construction

Arlington, VA – In the midst of historic market volatility, a new survey of retirement plan sponsors and financial professionals reveals gaps in focus - and perception – about the role of fixed income investments in a fully diversified 401(k) menu.

“Plan fiduciaries have long understood the need for a diversified portfolio. However, survey data consistently show that fixed income options have received neither the attention nor prominence of equity alternatives in most defined contribution plan menus,” noted Nevin Adams, Chief Content Officer of the American Retirement Association, and head of the organization’s research team.

The new survey - sponsored by Janus Henderson Investors, conducted jointly by the Plan Sponsor Council of America (PSCA) and the National Association of Plan Advisors (NAPA) - found that equity options outnumber fixed income by approximately 3:1 on plan menus, regardless of plan size.  Moreover, while nearly three-quarters (71.9 percent) of financial professionals incorporate a style box in their Core equity recommendations, less than four-in-ten (39.9 percent) do so for fixed income investments.    

“As plan sponsors and participants are confronted with extreme market volatility in the wake of concerns about the COVID-19 pandemic, it is more important than ever that plan sponsors provide a well-diversified subset of fixed income options to help participants meet their goals,” said Russ Shipman, Head of Retirement Strategy and Sales at Janus Henderson Investors.  

Among the survey’s key findings:

  • Plan sponsors offer an average of 3.7 fixed income options compared to an average of 10.3 equity options.
  • When selecting fixed income options, plan sponsors and financial professionals frequently prioritize the same demographic criteria — risk tolerance (44.3 percent among sponsors, 56.3 percent among financial professionals) and retirement age (34.6 percent among sponsors, 40.8 percent among financial professionals) – but largely ignore key aspects such as gender, education, and existence of a defined benefit plan.
  • Risk/reward (94.6 percent), performance (98.5 percent), and fees (95.1 percent) dominate the focus of financial professionals as "essential" or "preferred" factors in recommending fixed income options.
  • Stable value (67.4 percent) and index (61.1 percent) funds dominate plan sponsors’ core fixed income investments.
  • While a third (34 percent) of financial professionals said the education and support they receive from asset managers on fixed income investments is “outstanding,” 14.4 percent said it needs improvement – more than twice the percentage (6.2 percent) cited regarding equity investments.

“A truly diversified portfolio can only be developed from a fully diversified plan menu,” commented Matt Sommer, Senior Managing Director of Defined Contribution and Wealth Advisor Services from Janus Henderson. “Better choices flow from better information, more complete demographic data, and a heightened sensitivity to the options available in the marketplace.  The insights from this survey highlight both the need and the opportunity to do so at a critical time, particularly as so many Americans approach and enter retirement.”

For a full copy of the research or to talk with someone about the study, please contact Matt Sommer or Jody Lowe.  

About the Survey

PSCA and NAPA, with sponsorship by Janus Henderson Investors, surveyed plan sponsors and retirement plan advisors (separately) between January 21 and February 21, 2020, regarding current plan menu designs and investment trends. The survey responses were obtained as various equity market indices were still climbing to record levels – the S&P 500 and NASDAQ composite rose to record highs on February 19, 2020 and the COVID-19-driven declines started the very next day.  Responses were received from nearly 100 plan sponsors representing a wide range of plan sizes and industries, and separately from 200 retirement plan financial professionals who are primarily focused on 401(k) plans. For more information visit:  https://www.psca.org/research/2020/InvestmentTrends

About the Plan Sponsor Council of America and the National Association of Plan Advisors

The Plan Sponsor Council of America (PSCA) is a diverse, collaborative community of employee benefit plan sponsors, working together on behalf of millions of employees to solve real problems, create positive change and expand on the success of America’s voluntary, employer-sponsored retirement system. The National Association of Plan Administrators (NAPA) is the only advocacy group exclusively focused on the issues that matter to retirement plan advisors. Both PSCA and NAPA are part of the American Retirement Association, a non-profit professional organization established to empower retirement plan professionals who are dedicated to building a better retirement for Americans. The American Retirement Association is comprised of five premier retirement industry associations; the American Society of Pension Professionals & Actuaries (ASPPA), the American Society of Enrolled Actuaries (ASEA), the National Association of Plan Advisors (NAPA), the National Tax-deferred Savings Association (NTSA), and the Plan Sponsor Council of America (PSCA).

About Janus Henderson Investors

Janus Henderson Group (JHG) is a leading global active asset manager dedicated to helping investors achieve long-term financial goals through a broad range of investment solutions, including equities, fixed income, quantitative equities, multi asset and alternative asset class strategies.

Janus Henderson has approximately $294.4 billion in assets under management (at 31 March 2020), more than 2,000 employees and offices in 27 cities worldwide. Headquartered in London, the company is listed on the New York Stock Exchange (NYSE) and the Australian Securities Exchange (ASX). Learn more about Janus Henderson Investors at https://janushenderson.com

Media Contacts
Jody Lowe, The Lowe Group, (414)322-9311, [email protected]

Sarah Johnson, Director of Media Relations and Corporate Communications, Janus Henderson Investors, (720) 364-0708, [email protected]

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