3 key issues for corporate pensions to consider
One of the most notable trends in our industry has been the emergence and growth of the outsourcing of pension investment management, which is often referred to as the Outsourced Chief Investment Officer (OCIO) model.
Three practical considerations must be addressed by any pension plan sponsors considering outsourcing, include:
- Fiduciary duty
Example: How can a plan sponsor ensure that the plan's participants are protected in an outsourcing arrangement?
- Role
Example: Should the OCIO provider be considered a co-fiduciary providing both advice and investment management?
- Evaluation
Example: How should a sponsor go about evaluating different providers of OCIO services?
This article summarizes Russell Investments’ views in each of these areas and includes a “who does what” worksheet, along with a set of sample interview/Request for Proposal (RFP) questions that may be useful to a plan sponsor considering outsourcing.