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 CIO (OCIO) model.

Three practical considerations must be addressed by any pension plan sponsors considering outsourcing, include:

  1. Fiduciary duty
    Example: How can a plan sponsor ensure that the plan's participants are protected in an outsourcing arrangement?

  2. Role
    Example: Should the OCIO provider be a fiduciary as defined under ERISA section 3(21), or an investment manager as defined under ERISA section 3(38), or both?

  3. Evaluation
    Example: How should a sponsor go about evaluating different providers of OCIO services?

This paper summarizes each of the categories above and includes a sample set of interview/RFP questions and a "who does what" worksheet.

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