T. Rowe Price Research To Highlight The Impact Of Defined Benefit Changes On Defined Contribution Plans
The series will address the impact of DB plans on the design of glide paths used in qualified default investment alternatives (QDIA) and important considerations for plan sponsors in assessment and selection for their DC plans. The inaugural paper, "Making the Benefit Connection," concludes that there is no single way to assess a DB plan's impact on glide path suitability. Instead, there is a need to advocate for flexibility and emphasize the importance of aligning the glide path to a sponsor's unique objectives.
This paper will be followed over the next several weeks by deeper dives into related topics, including:
- Installment 2: Glide Path Evaluation Is Not an Easy Task
- Installment 3: Closed or Frozen DB Plans Present Unique Challenges
- Installment 4: Evaluating Opportunity Costs
- Installment 5: Taking Specific DB Plan Features Into Account
- Installment 6: Employer DC Plan Contributions Impact Glide Path Design
- Installment 7: The Potential Impact of DB Plans on Early Retirement
Contributing authors include,
Following the release of the first seven papers in the series, an eighth installment is expected to address additional questions from plan sponsors and summarize conversations sparked by the first seven installments.
"Changing benefit packages present specific challenges for plan sponsors while they also place an important focus on appropriate solutions for employees. It is our hope that this research will shed light on the importance of glide path design in a plan sponsor's full suite of retirement benefit plan offerings. Plan sponsors face complex issues in making sure their plans work well together. While the issues are not straightforward, we believe that determining an appropriate glide path for all participants in a plan can be achieved through thoughtful analysis."
Founded in 1937,
1 McFarland, B. (2020) Retirement offerings in the Fortune 500: 1998 – 2019 (Volume 30, Number 06). https://www.willistowerswatson.com/en-US/Insights/2020/06/retirement-offerings-in-the-fortune-500-1998-2019
CONTACT T. Rowe Price Public Relations, Bill Benintende, 443-248-2424, Bill.Benintende@troweprice.com; Lara Naylor, 410-215-7998, Lara.Naylor@troweprice.com, Laura Parsons, 303-887-2911, Laura.Parsons@troweprice.com