Aligning your DB and DC plans

Take a consistent investment approach across Defined Benefit and Defined Contribution plans.

Managing a traditional defined benefit (DB) plan and a defined contribution (DC) retirement savings plan is not simple. CFOs, investment committees, and retirement plan sponsors are increasingly realizing the benefits of outsourcing to a single trusted outsourced CIO (OCIO) for both types of plans.

All too often, organizations that sponsor both DB and DC plans manage them independently with separate providers and with separate internal governance processes. In our experience, this approach can lead to missed opportunities for savings, operational efficiencies, and potential improvements to both plans.

While DB and DC plans may have separate and distinct objectives and structural differences and requirements, both types of plans share similar and overlapping needs. However, this doesn’t mean DB and DC plans should be managed identically. Instead, plan sponsors can apply consistent investment beliefs and approaches to align efforts across both DB and DC plans.

Many of the same benefits of outsourcing a DB plan are applicable to a DC plan:

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Reduce the fiduciary burden on the plan sponsor by contractually delegating fiduciary duties

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Potential to reduce fees by using the same strategies for both plans rather than different investment vehicles for each

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Mitigate litigation and compliance risk

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Spend more time on strategic decisions; spend less time on operations and monitoring vendors

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Increase decision speed

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Access to some of the best vendors beyond what is offered on the recordkeeping platform

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Potential to improve plan design and participant outcomes, lower cost and increase operational efficiencies

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Provide continuity and consistency in plan communications for plan sponsors and participants to help them gain a better understanding of their total retirement benefits

We're flexible

We can help simplify the day-to-day management of your DB and DC plans by providing fiduciary support within critical areas. We have extensive experience with both DB and DC plans. We offer OCIO solutions that go beyond advice and manager research to help shoulder the fiduciary burden, so you can focus on your core business and the issues that matter most to you. We strive to understand your organization's goals and work with you to customize a program to meet your specific needs.

We can assume primary responsibility for activities such as:

STRATEGIC ADVICE

  • Objective setting
  • Governance and fiduciary structure and process
  • New investment strategy analysis

IMPLEMENTATION

  • Transition management
  • Investment management
  • Portfolio and manager rebalancing

ADMINISTRATION

  • Performance measurement and analysis
  • Fund reporting
  • Regulatory reporting

A single investment outsourcing option for all of your retirement plans.

With world class investment solutions designed around your needs, you are free to focus on what matters most to your organization.

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What sets us apart in the OCIO space?

We are recognized in the industry as a leader in helping institutional investors link their investment strategies to their organizations' goals and objectives.

Our experience and depth of resources in consulting, investment management, research, and implementation make possible a wide range of innovative solutions for both DB and DC plans.

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Built around you

Our approach is deliberately flexible. Every solution is built around your unique needs, with the flexibility to evolve with you as your needs change.

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Global investment approach

Our global investment approach, developed over the last 80 years, efficiently focuses a diversified selection of the world's leading managers and strategies on your goals.

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Specialized practices

Our specialists bring an intimate understanding of the issues faced by organizations like yours, drawing from years of first-hand experience and our broader practices.

Related articles

Harmonizing DB and DC: Part one – It begins with governance

We believe a consistent investment approach between DB and DC plans is critical for an organization.

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Harmonizing DB and DC

Harmonizing DB and DC: Part two – Investments

It's time to face the music: The investment approaches driving your organization's DB and DC plans should be harmonized.

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Harmonizing DB and DC: Part two

Related resources

Peter Corippo

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Peter Corippo
Managing Director,
Fiduciary Solutions - Retirement
866-616-8927

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