Season 1 Episode 6 - Carrots & Sticks: The Impact of Regulations on the Retirement System
Release Date: 07/13/2021
Bonus: Episodes Recap with Michael Kreps
The Accidental Plan Sponsor®
In the second half of season two, Josh and co-host Michael Kreps explored different ideas to reshape our country’s retirement system. Listen to their recap and reflections on the various approaches and proposals.
info_outline
Season 2 Episode 8: Non-Accidental Plan Sponsors
The Accidental Plan Sponsor®
As we wrap up season 2 of the podcast, Josh Cohen and guest co-host Michael Kreps come full circle to discuss alternative approaches to the U.S.’s employer-based retirement system. Instead of employers playing the role of the plan sponsor, what if the Federal Government stepped in? Or, what about the private sector? We discussed the proposed Retirement Savings for American Act, Pooled Employers Plans (PEPs) and much more. Josh and Michael are joined by two prominent influencers in the retirement space: Teresa Ghilarducci, professor of economics at The New School for Social Research, and Rick...
info_outline
Season 2 Episode 7: The Implementers
The Accidental Plan Sponsor®
Josh Cohen and guest co-host Michael Kreps have been telling the story of how some policy makers, think tanks, industry groups and politicians worked to address some of the gaps in our retirement system. One of those gaps is the millions of Americans that don’t have access to workplace savings plans. In this episode, they focus on the work being done at the state level and the process of moving from policy design and legislation, to implementation. They speak with two individuals who have been instrumental in getting these plans implemented: Katie Selenski, executive director...
info_outline
Season 2 Episode 6: Laboratories of Democracy
The Accidental Plan Sponsor®
In the 1932 Supreme Court ruling, Justice Louis Brandeis popularized the phrase “laboratories of democracy“ to describe how “a single courageous state may, if its citizen choose, serve as a laboratory and try novel social and economic experience without risk to the rest of the country.” Many states have looked to become laboratories to address some of the gaps in the US current retirement system that federal policy hasn’t yet been able to successfully solve. Josh Cohen and guest co-host Michael Kreps talk to two early experimenters, Hank Kim and Daniel Biss, to learn from...
info_outline
Season 2 Episode 5: This Odd Couple’s Auto IRA Proposal
The Accidental Plan Sponsor®
The Auto IRA concept has been one of the most influential proposals to address gaps in the current US retirement system, namely the persistent coverage gap for small private-sector employers. Josh and guest co-host for the next few episodes, Michael Kreps, discuss the genesis of auto-IRAs with two individuals from different political backgrounds who came together to conceive and promote the proposal and implementation efforts: guests David John and Mark Iwry. David is a Senior Policy Advisor at the AARP Public Policy Institute and the Deputy Director for the Retirement...
info_outline
Season 2 Mid-season Trailer
The Accidental Plan Sponsor®
For the second half of season 2, Josh Cohen will be joined by guest co-host Michael Kreps, Principal at Groom Law Group, to dissect the biggest questions and potential solutions that are being worked on in the retirement space.
info_outline
Bonus: Perspectives from Josh’s Global Colleagues
The Accidental Plan Sponsor®
Josh gets on the ground insights from three colleagues in PGIM’s Institutional Relationship Group: Ben Price, Howard Nowell, and Philip Hsin.
info_outline
Bonus: Meet Josh’s New Boss
The Accidental Plan Sponsor®
Michael Miller, a long-time industry veteran and Head of PGIM DC Solutions, joins Josh to share how he got into the retirement space and some insightful perspectives on DC trends and pressing issues.
info_outline
Bonus: Josh’s Key Takeaways: Non-US Retirement Systems
The Accidental Plan Sponsor®
In the first half of season 2, Josh traveled the globe to hear from local experts about how their countries tackled the challenge of building a retirement system. Listen to Josh’s reflections on lessons learned and common themes.
info_outline
Bonus: Global Episodes Recap with John Mitchem
The Accidental Plan Sponsor®
John Mitchem, global financial consultant and retirement expert, joins Josh to discuss episodes from the first half of season 2 while weaving in his experiences and expertise.
info_outlineWhile saving for retirement has been simplified and streamlined in recent decades, with tools like auto-enrollment and target date funds, the retirement savings ecosystem is anything but simple. It’s a complex confluence of innovators, service providers, employers, workers, consultants, lawyers, and, yes, government officials.
Regulators play a huge role in our industry, so understanding who they are and how they work is an important factor in the outcomes for plan sponsors and plan participants. In this episode, we speak with two former Department of Labor EBSA directors, Brad Campbell and Phyllis Borzi, about the challenges and opportunities in regulating the employee benefits space, including the enactment of the landmark Pension Protection Act of 2006.
Key Takeaways:
[:04] Josh opens up today’s episode with a quick recap of episode 5 which focused on the work of two innovators in the field. He opens up this part of the conversation on what made the start of Target Date Funds and automatic enrollment so very impactful, the passage of the Pension Protection Act of 2006.
[2:18] Josh explores the regulatory carrots and sticks of EPSA through the eyes of two of its leaders, we begin with Bradfrod Campbell. Brad shares about how he came to shape the world of modern retirement savings as the Assistant Secretary of Labor for Employee Benefits in the United States Department of Labor.
[4:18] The Pension Protection Act was passed while Brad worked as a young Republican, he speaks about his beginnings in the Government and how he found ERISA, enrolled in law school and weathered the Enron scandal.
[8:15] Phyllis Borzy took over Brad’s position as the Assistant Secretary of Labor for Employee Benefits in the United States Department of Labor. She talks about how she was always drawn to law and enrolled the year ERISA passed.
[11:14] Her love for ERISA was cemented after her stay in corporate law and she brought it into her career in government all the way up to what she calls the Gingrich revolution.
[13:45] Brad and phyllis had similar challenges but different approaches. Brad talks about the balancing act between carrot and stick.
[15:09] Josh offers a quick explanation of 404C — a pivotal part of the Accidental Plan Sponsor story as well as the Pension Protection Act. Brad weighs in on the way 404C functions.
[19:14] Phyllis shares her profound hate for 404C, her multiple reasons why and what she would do differently.
[22:25] The Pension Protection Act from Brad’s point of view — both pre and post Enron — and the legal implications that had to be thought over in that context.
[26:15] More carrots! 404C generated a proliferation of offers without much structure for participants to direct their investment, Brad describes how they helped write the QDIA regulation and define 3 mechanisms for an appropriate default investment that would stand the test of time.
[30:00] Brad shares the difficulties of putting regulations in place, from congress to burgeoning lawsuits inter-administration. Phyllis shares her take and the work she did on the regulation, get ready for some bi-partisan agreement!
[34:44] Phyllis takes a moment to denounce the attacks her co-workers received from the nay-sayers.
[35:54] With overwhelming bi-partisan support, the Secure Act was passed in 2019, Josh touches on some of the issues this rule attempts to address. Brad and Phyllis share their joy having worked on ERISA.
[37:48] Josh thanks his guests for sharing their stories and ends with a taste of what episode 7 has to offer.
Thank you for tuning in. If you liked what you heard, please subscribe and leave us a review wherever you listen to your podcasts.
Links:
Mentioned in this episode:
More about Bradford Campbell.
More about Phyllis Borzy.