The Accidental Plan Sponsor®

Most retirement benefits for American workers are built up through workplace savings plans where employers play a pivotal administrative and legal role as the plan sponsor. The Accidental Plan Sponsor®, hosted by Josh Cohen, Head of Client Solutions for PGIM DC Solutions, explores the origins, evolution and trends within the employer-based retirement system and examines other ways, both domestically and globally, that benefits can be delivered.

Bonus: Episodes Recap with Michael Kreps 01/17/2024

Season 2 Episode 8: Non-Accidental Plan Sponsors 04/26/2023

Season 2 Episode 8: Non-Accidental Plan Sponsors 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 Jones, a Senior Partner in AON’s wealth practice. Key Takeaways: [2:07] Josh shares his two a-ha moments: One in 2010 when he visited Australia and learned about superannuation funds and the second a few years later when he heard about USA Funds. [3:03] Guest co-host Michael Kreps joins Josh, remembering the time that they met for the first time for a coffee, not knowing that they will end up hosting a podcast together. [3:41] Michael talks about his proposal to the Senate. [6:11] What if the Federal government plays the plan sponsor role for the private sector workers? , professor of Economics at The New School for Social Research, speaks of the personal journey that motivated her efforts in this field. [10:30] Teresa speaks of the Mandatory Universal Pension System (MUPS). [16:46] Teresa’s most recent proposal, a thrift savings plan for all workers. [19:20] Teresa endured a harsh pushback after the global financial crisis and received the name of ‘the most dangerous woman in America.’ [20:17] Michael shares his thoughts about the Retirement Savings for America Act. [23:01] Michael discusses whether the government should be involved in running plans. [24:21] discusses pooled employer plans (PEPs). after discussing his career choices that led to his current position. [25:50] Rick discusses the employer's role in the US System and why he is passionate about PEPs. [28:37] The two main problems of the Multiple Employer Plans (MEPs) are the common nexus and the one-bad-apple rule. [30:06] Rick speaks of the Secure Act.: , including who plays the role of the plan sponsor in PEPs and the fiduciary duties required. [35:05] Rick expands on the opportunities provided by pooling. [38:11] Michael adds his perspective on PEPs and its early efficacy indications. [42:14] Michael shares his wrap-up comments about the overarching question: Who plays the role of the plan sponsor? [44:06] Josh closes two full seasons of the podcast, addressing this podcast's central question and its complexity: We need Intentional plan sponsors! /episode/index/show/theaccidentalplansponsor/id/26650311

Season 2 Episode 7: The Implementers 02/22/2023

Season 2 Episode 6: Laboratories of Democracy 02/01/2023

Season 2 Episode 6: Laboratories of Democracy 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 their experiences turning policy ideas into legislation. Hosted by Josh Cohen, The Accidental Plan Sponsor podcast explores the history, evolution and future of employer-based retirement plants, including the 401(k), through the eyes of its creators -- providing unparalleled insights into an imperfect system that works for many, but not all. Key Takeaways: [:38] Josh Cohen, your host, approaches the fact that some states have become laboratories to address some of the gaps in the current retirement system, which federal policy cannot tackle yet. [3:44] How did states get involved in retirement policy when it is typically taken care of at a national level? [4:32:] Michael Kreps, Principal at Groom Law, shares some of his recollections and experiences about the journey that some of the states have been going through. [6:06] What drove some states to go down this path of turning policy ideas into laws? Who were some of the most important players? [7:15] Hank Kim, Executive Director & Counsel at NCPERS, talks about Secure Choice Plans (a term he coined himself). [9:04] Hank talks about how he began working on pension issues, starting with the union of firefighters. [9:37] Hank speaks of the history of NCPERS. [11:32] Hank explains why NCPERS showed interest in the private sector. [16:08] Hank talks about the Californian, Oregon, and Illinois policymakers and how they couldn't get around political challenges as they defined the benefit pension approach. [21:27] Illinois was the first state to pass legislation approving the launching of an auto IRA program. Daniel Biss, Mayor of Evanston, explains how he plays a part in the story of retirement security. [33:40] Daniel explains why states can be the laboratory of democracy. [35:05] Michael shares his perspective about states being laboratories of innovation and if state experiments could contribute to a consensus around a national policy. 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 More about More about /episode/index/show/theaccidentalplansponsor/id/25788450

Season 2 Episode 5: This Odd Couple’s Auto IRA Proposal 01/18/2023

Season 2 Episode 5: This Odd Couple’s Auto IRA Proposal 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 Security Project at the Brookings Institution. Mark is a former Deputy Assistant Secretary for the US Treasury, a Nonresident Senior Fellow at Brookings, and a visiting scholar at the Wharton School. Tune in to hear how David and John’s paths crossed to result in the bipartisan Auto-IRA now operating in several states today. Key Takeaways: [:14] Lorenzo and Yolanda Harris have been operating Janico Building Services for more than 30 years. [1:07] The Harris were facing the same issue that millions of small businesses in the US encounter today, the ability to provide a low-cost quality workplace retirement savings vehicle for their employees. [1:33] Janico was the first company to provide an Auto RAA program to their employees. [5:13] Michael Kreps, Principal, Chair of Retirement Services Practice, introduces himself. [6:51] Michael shares the emphasis for this part of season 2. [8:10] There have been decades of proposals about how to fix the retirement system. Michael talks about how some things turned better and sometimes worse, but the Auto RAA is one of the most influential proposals in recent history. [9:00] David Jone introduces himself. [9:55] David shares how he began working with congressmen. [10:30] Mark Iwry talks about his professional and personal journey. [11:50] Mark wanted to make the world a better place through public policy, and he found a mentor to whom he talks about [13:52] Mark found his passion the healthcare reform. [15:18] Mark explains why the initiative was out of the norm. [17:08] They were trying to solve a pendent issue in the US retirement system. [17:28] Pension simplification was introduced by Mark with simple RIA. [18:49] Mark and David got together to combine concepts. [20:21] How did Mark and David, coming from such different backgrounds, come together with a proposal? [22:15] Mark and David talk about when the idea of auto RAA came about. [24:15] David shares what happened at the Heritage Foundation Auditorium. [25:02] To which employers did the original legislation apply? [26:26] Who will run these plans? [26:49] Josh explains a Threat Saving Plan (TSP). [27:35] One of the primary goals of the TSP proposal was to encourage more adoption of private-sector savings. [29:01] Mark and David tested the program, and over time people recognize it was something they could do to attract better-quality employees and keep them. [30:45] Mark and David started to get offers from lawmakers. [31:38] David and Mark got both presidential candidates to endorse their proposal. [33:44] The auto RAA was included in many of Obama’s budgets, but Obama Care happened. [34:56] They couldn’t get the proposal pass at a Federal level, but they could still try at the state level. [36:54] David was very reluctant about trying the auto RAA at a state level. [38:33] David talks about the employer's role in the auto RAA as the plan sponsor. [40:48] Thankfully, David and Mark continue to be active. [42:05] Michael talks about the impact of Mark and David’s work on the auto RAA concept. [44:15] David and Mark have been pushing for decades for the auto RAA to become a reality. 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 More about More about More about David Jone /episode/index/show/theaccidentalplansponsor/id/25639350

Season 2 Mid-season Trailer 12/12/2022

Bonus: Perspectives from Josh’s Global Colleagues 10/05/2022

Bonus: Meet Josh’s New Boss 08/31/2022

Bonus: Josh’s Key Takeaways: Non-US Retirement Systems 07/19/2022

Bonus: Global Episodes Recap with John Mitchem 06/15/2022

Season 2 Episode 4: Singapore’s All-in-One System 05/11/2022

Season 2 Episode 4: Singapore’s All-in-One System Most retirement systems across the globe have three pillars: a government run social security system, an employment-based retirement system, and, finally, additional individual retirement savings. On the fourth stop of our global tour, we travel to a country where the government runs the whole thing…Singapore! Their comprehensive system goes beyond retirement and is run by the government through the Central Provident Fund (CPF). In this episode, Josh Cohen interviews Desmond Chew, a senior manager at CPF, to help explain its history and how it works, and Joe Cherian, a professor who lays out a methodology which helps evaluate both Singapore’s system and others around the globe. Join us to hear about this all-in-one approach! Key Takeaways: [:25] Josh Cohen, your host, introduces today’s topic: Singapore, whose government runs the whole retirement plan, and in fact, reaches well beyond retirement. [2:25] Singapore established a mandatory retirement system called the Central Provident Fund (CPF) the basis of the system played today. [2:50] Mr. Desmond Chew (Group Director- Housing) has served in the CPF for more than 20 years. Desmond explains what exactly CPF is and what is its role. [7:51] CPF supports other goals apart from retirement, Dr. Chew speaks about the importance of public housing. [10:52] MediSave are contributions that increase as workers age and its purpose is to be destined for medical expenses. Desmond shares the most important aspect. [13:08] Josh and Desmond dive deep into how the money is invested and the role the GIC plays. [15:25] Desmond talks about the case of those individuals who are ready to take more risks with their savings. [16:45] The system balances individual choice with collective responsibility, Dr. Chew explains how. [20:02] Joseph (Joe) Cherian (Professor of Finance at NUS Business School) shares his background and career journey. [22:10] Joe talks about what happened in 2014, a conflictive time for Singapore’s retirement system. [22:54] Joe wrote an article named: Seven Pillars of a Good Retirement System, stating why CPF meets most of these pillars and the possible areas for improvement. [30:06] Can the US or other countries adopt a system like this? Joe thinks it's difficult to emulate the historical and governmental influence, so he does not recommend it unless the country has a good and solid government. [33:06] Stayed tuned for the bonus episodes! Thank you for tuning in. If you liked what you heard, please subscribe and leave us a review wherever you listen to your podcasts. /episode/index/show/theaccidentalplansponsor/id/23073305

Season 2 Episode 3: Building A Nest In The UK 04/19/2022

Season 2 Episode 3: Building A Nest In The UK Often retirement policies in a country are a result of a patchwork of initiatives over time.  Wouldn’t it be nice if a country could take more of a blank slate approach? In this episode, Josh Cohen interviews Helen Dean, CEO of the National Employees Savings Trust, or NEST, which is the largest pension scheme in the United Kingdom based on the number of members. Helen has played a central role over the last two decades in government, and now at NEST, developing and implementing a new retirement approach for the UK.  Learn how they borrowed a lot of great ideas from other countries, including the US, to craft a system that may just be a model for other countries in the future. Key Takeaways: [:15] Josh Cohen, your host, introduces today’s topic: The evolution of the UK’s retirement system or what Helen Dean likes to call “The biggest social experiment ever”. [3:18] Helen shares her professional journey which started with her getting a degree in psychology and social policy, and involved working for the DWP [6:39] The UK did something unique: They created a pension committee with three individuals: a business leader, a trade union leader, and a leading academic. [8:51] How do you get individuals to save more? Education and advice didn’t get people to save more. [11:31] Helen shares what her team and she proposed (which was very different from what they saw in the US model), they wanted to require automatic enrolment for all workers. [19:00] Helen shares how the employer community got on board with NEST, after seeing the benefits for the UK and for their own businesses. [22:28] Helen shares how they turned again to the US to adopt their ideas for emergency savings. [23:56] Helen talks about how NEST manages investments for controlling risks and optimizing returns. [25:18] NEST started to invest in liquid and private assets, high-quality sustainable businesses that assure a good return over the long term. [28:43] Helen openly shares her thoughts and feelings about her past two decades dedicated to building NEST from scratch, seeing it grow, and witnessing the amazing impact it has had so far. [31:29] Stay tuned for the next episode where Josh will take the audience to Singapore. 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: Listen to Season 1 Episode 5: Mentioned in this episode: More about /episode/index/show/theaccidentalplansponsor/id/22840658

Season 2 Episode 2: The Down Under Edition 04/05/2022

Season 2 Episode 2: The Down Under Edition Here’s what you need to know about Australia’s Retirement System: It’s really big. It’s government mandated. It’s privately run. It’s really sophisticated. Still curious? Host Josh Cohen’s two guests have played meaningful roles in the system’s development from the highest levels of government and industry. The Honorable Nick Sherry started one of the first modern Superannuation Funds in Australia and then went to be the leading minister in the government overseeing the industry. Ian Silk ran the largest Super Fund called Australian Super. There’s a lot we can learn from their experiences. Key Takeaways: [:19] Josh Cohen, your host, introduces today’s topic: Australia and their compulsory retirement system with very sophisticated investments that cause admiration worldwide. [2:30] Josh is accompanied by two experts to dive deep into the origin and evolution of the Australian retirement system. [2:55] Nick Sherry joins the conversation. He is a former Australian politician who served as a member of the Australian Senate for the state of Tasmania from 1990 until 2012, Sherry was sworn in as the Assistant Treasurer in 2009, after serving as the first Australian Minister for Superannuation and Corporate Law. [4:39] Nick shares how he accidentally got involved in the retirement space. [5:45] Nick explains how Australia began to shape a new retirement policy. [6:40] Josh describes how the industrial awards system work along with the social wage. [7:56] Nick shares the development of the House Plus Fund. [9:10] Nick explains the administrative hassles they had to overcome in the late 80s’. [10:09] Nick becomes in charge of an additional pension reform when he just assumed the role as a Senate for the state of Tasmania. [12:32] Nick talks about initiating the Cooper review. [13:25] What happens at retirement? [14:01] Nick speaks about his life now that he is retired but still very active! [14:38] Josh explains what fund mergers are about. [15: 23] , Chief Executive at AustralianSuper, joins the conversation by providing answers about how Fund mergers work in Australia. [16:47] Ian talks about his vast experience in the field of funds. [17:18] Ian dives deep into the five sectors the retirement providers fall into. [18:30] Ian describes two reasons why the owners have decided not to run their own plans. [20:05] Compulsion arrived to change how things were doing in regards to retirement. [20:34] An important feature of the Australian retirement system: An employer can run his/her own plan or pick a super plan as the default for his/her workers. There is always a default investment option if the employer doesn’t make an election. [21:28] Josh talks about Industry funds that arise in the late 1980s and Ian expands on the topic. [23:39] Josh introduces the fourth sector: The retail sector. [25:32] Ian explains how people took their funds from retail to industry. [25:43] The fifth sector is called the Self Managed Super, where people decide to run their own Super. Ian describes the one big driver of its popularity. [26:58] Ian explains how Australian Super originated and how it scaled. [28:49] The area of investing innovation is the one that is admired by many in Australian Super. Ian describes this particular feature of the Australian Super. [30:02] Ian shares what improvements could be done to an already sophisticated Australian retirement system. [31:03] Ian talks about the secret to the success of the Australian retirement system. [32:11] Ian shares the proudest moment of his career, realizing that low to middle-income workers in Australia have something significant to look forward to in retirement that wasn’t the case 30 to 40 years ago. [33:23] Josh shares his key takeaways from the amazing conversations with Nick Sherry and Ian Silk. [34:55] Stayed tuned for the next episode: The UK edition. 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 More about /episode/index/show/theaccidentalplansponsor/id/22688747

Season 2 Episode 1: The Chicago Boys and the Chilean Model 03/22/2022

Season 2 Episode 1: The Chicago Boys and the Chilean Model Our tour around the globe starts in South America. Chile has been seen in retirement circles as an early pioneer in reforming their retirement system in the late 1970’s. While studied and admired by many, there are many more layers to the story when viewed from historical and current events. Host Josh Cohen talks to two individuals who have played a meaningful role in shaping the system. University of Chicago educated Martin Costabal led efforts in the Chilean government to implement the new system in the midst of the Cold War. Cristian Rodriguez has led the largest retirement plan provider in the country, and is making the case for the systems long term survival. Travel with us to Chile to hear about their unique history and hopefully learn from their creative retirement solutions. Key Takeaways: [:21] Josh Cohen, your host, states the main objective of Season 2: to explore how other countries around the world organized their retirement systems to accommodate a work force that is living longer and working much differently than what the previous generation did. [3:50] Other countries looked up to Chile since they had updated and reformed their retirement system and it used to be viewed as a success. Josh talks about the wider political circumstances in Chile. [5:03] Josh begins to explore the current state of the Chilean system by starting with its beginnings; that is why he talks with Martin Costabal who participated in its creation within the Chilean government. [6:21] Martin shares how he got an offer from the University of Chicago that changed his life; he explains his personal and professional reasons for moving to the United States. [10:30] General Augusto Pinochet Ugarte was self-declared president in Chile after a coup, while Martin was studying abroad. [11:13] In August, 1974, Martin acquired an MBA from the University of Chicago and goes back to Chile to work in the Ministry of Economics with the purpose of instituting policies to reprivatize many industries and battling out of control inflation. He found that an economic blueprint called “The Brick” was already in place with those same goals. [16:17] Martin focused on creating a new retirement system for Chile along with a group of 20 people, based on some foundations from “The Brick.” [19:20] Cristian Rodriguez, Chairman of the Board of AFP Habitat, speaks about the organization and its role in managing pensions. Cristian has been working with Habitat for the past 23 years in several positions, he gives an overview of its evolution over the years. [22:04] The Chilean retirement system lays on three pillars: 1. The government-backed foundational pillar (The solidarity pillar), 2. The employment based pillar (The contribution pillar), and 3. A voluntary saving system (similar to the IRA in the USA). Cristian talks about the pros and cons of each. [34:47] One challenge for the system in Chile is that not all workers save the same. That is why there is a need to modernize the first pillar to include the informal and independent kinds of work that are becoming more and more prevalent worldwide. People also need to achieve a better understanding of the retirement system and the outcomes they will be generating. [38:20] Josh talks about four main factors of any retirement system: Access, Adequacy, Alignment of Interest, and Innovation. He also shares his insights in regards to the Chilean retirement system. /episode/index/show/theaccidentalplansponsor/id/22531373

Season 2 Trailer 03/09/2022

Bonus: Season in Review with Mike Barry 12/15/2021

Bonus: Let’s Hear More from Don Ezra 11/10/2021

Bonus: Meet PGIM's New DC Solutions Team 10/13/2021

Bonus: Brigitte Mardian, The Early Days and Now 09/08/2021

Season 1 Episode 8 - In Consultants We Trust 08/11/2021

Season 1 Episode 7 - Lawyering Up: The Impact of Class Action Lawsuits on the Retirement System 07/28/2021

Season 1 Episode 7 - Lawyering Up: The Impact of Class Action Lawsuits on the Retirement System Jerry Schlichter and Jamie Fleckner have some things in common. They both got into law through political activism, and they’ve built their careers on ERISA litigation. But where they differ is largely about who their clients are. One represents plan sponsors and their providers, the other represents employees who feel they have been wronged, and their legal battles have shaped how the defined contribution retirement space thinks about innovation. In this episode, we sit down with each to try to understand the history of these cases, how they work, and how litigation has influenced plan sponsor decision making. Key Takeaways: [:25] Josh opens up today’s episode on lawsuits and the effects it has on innovation. How did we get here in the first place? Let’s ask some prominent lawyers about the history of how this all came to be. [2:25] Jerry has always been an advocate for civil rights and has seen first-hand how much good law and order can do. After being a student protester and passing the bar, Jerry took on race and gender discrimination cases against large companies. [4:05] Jerry’s path eventually led him to investigating 401k plans for minorities. The more he saw, the deeper he dug. He found himself in unknown territory. There was no definition on how companies were making their investments or the types of fees they were charging. If he were to take on this case, he would be going to war with companies with big pockets. [7:55] As a young lawyer that represents plan sponsors at the time, Jamie found himself deep into ERISA topics. Jamie mostly worked around the issue of company stock options and retirement plans, but what Jerry brought to the table was completely different. Plan fees have to be monitored and capped based on what’s happening in the market. Third-party mutual funds saw ‘record keeping’ fees as a loophole. [11:45] Jerry was challenging some pretty ‘status quo’ practices. In trial, Jamie saw first hand how little people understood about ERISA. After a month’s long trial and several witnesses taking the stand, the judge still had a thousand questions on how this process all works. [15:15] Jerry knew he had to be detailed and diligent in his work. They had to make sure their research was accurate. His team read every public information available to understand this better. [18:45] The human element really comes to light in cases like this. A plaintiff was displeased with her plan sponsor and her 401k investments, but inadvertently didn’t know that by suing them, she was also suing her former employer; who she loved. [22:20] Trials are a big production with a lot of emotions to balance in between. Jamie explains why most companies decide to settle, even if they’re in the right. [26:15] Appeal after appeal, Jerry sees his case go to the supreme court. The first 401k excessive fees case in history. [29:15] Despite Jerry and Jamie been on both sides of an ERISA lawsuit more than once, they know that, for the most part, plan sponsors are not crooks. [33:40] As long as plan sponsors make decisions based on the best interest of their participants, everything will be fine. This means, a lot more sponsors are playing things safe when it comes to other people’s investments. 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 More about. /episode/index/show/theaccidentalplansponsor/id/19959566

Season 1 Episode 6 - Carrots & Sticks: The Impact of Regulations on the Retirement System 07/13/2021

Season 1 Episode 6 - Carrots & Sticks: The Impact of Regulations on the Retirement System While 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 . More about . /episode/index/show/theaccidentalplansponsor/id/19786316

Season 1 Episode 5 - How Target Date Funds and Behavioral Economics Shaped Retirement Plans 06/29/2021

Season 1 Episode 5 - How Target Date Funds and Behavioral Economics Shaped Retirement Plans The future of defined contribution retirement savings will always be marked by two key concepts: putting individual investors first when designing plans, and constantly innovating. Over the course of the next four episodes, we’re going to discuss how regulation, litigation, and the role of consultants both support and deter innovation. We’re going to start with two featured guests who laid the foundation for the modern 401(k): • Brigitte Madrian, who pioneered behavioral economics work on automatic enrollment • Larry Tint, creator of the Target Date Fund Key Takeaways: [:29] Josh opens up today’s episode with a quick recap of episode 4 which focused on the work of two innovators in the field. He pursues the series by talking about his experience and what he believes the very heart of the issues to be — innovation, regulation and consultancies. [4:00] How did Larry Tint — former U.S. CEO of Barclays Global Investors — change the trajectory of the retirement industry? Josh and Larry detail his career trajectory and how it led to meeting the future Nobel prize winner Bill Sharpe and the birth of SharpeTint. [8:00] Most individual investors don’t know how to build investment portfolios! Larry talks about his time at Wells Fargo and his work with Don Luskin to use the technology he created with Bill to the benefit of individuals. The Target Date funds were born. [11:39] The General Motors exception! Also Larry talks about the innovations he didn’t act on or think of and how this might have changed the course of things even further — wheels on suitcases? [15:30] Target date Funds were still being held back, and more innovation was required. Josh introduces Behavioral Economist Brigitte Madrian — ninth Dean of the Marriott School of Business at Brigham Young University (BYU). [17:10] Behavioral Economics was not a thing when Brigitte began her academic career. She speaks to a life-changing moment in data analysis and the 20 plus years of research this generated! [22:29] So why is auto-enrollment so successful? Brigitte shares what her research points to as well as the kinds of organisations that immediately were on board, and the ones that weren’t. [26:07] The biggest hurdle… Lawsuits! Brigitte talks about the policy makers that got in touch with her and how she helped shape policy. She also shares the pride she feels about her public and academic involvement. [28:55] Larry takes a moment to reflect on his contributions to the retirement landscape. [29:43] Josh thanks his guests for sharing their stories and opens up the discussion on what came after Target Date Funds and automatic enrollment in the retirement planning space. 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 . More about . More about . More about . /episode/index/show/theaccidentalplansponsor/id/19645637

Bonus: Episodes Recap With Mike Barry 06/11/2021

Bonus: Insights From PGIM Colleagues 06/02/2021

Bonus: Ted Reminisces About The Early Days of DC 05/19/2021

Bonus: Frank Shares Moments from His Time on Capitol Hill 05/05/2021

Episode 4 - Innovation Is Not Easy 04/06/2021

Episode 4 - Innovation Is Not Easy If innovating was easy, we would all be Steve Jobs. But it’s not. It disrupts lives, it forces us out of comfort zones, and it requires both inspired vision and a lot of work. No wonder we prize the innovators amongst us. In this episode, we talk with two plan sponsors who embraced innovation in the defined contribution space, Stuart Odell, formerly of Intel, and Bob Hunkeler from International Paper Company. We discuss their work, the challenges they faced, and how they view the future of retirement. Key Takeaways: [:34] Josh opens up today’s episode with a quick recap of episode three which graded the system and found the innovation lacking. In order to find a way forward, he welcomes 2 plan sponsors who have found bold new solutions to obstacles. [3:39] Stuart Odell shares a bit about his journey from engineering to getting invested as a Plan Sponsor manager — and talks about the precarious state of the retirement plan as he started looking into it at Intel. [8:00] Having no preconceived notions about the defined contribution space may have helped Stuart think outside the box. He explains some of the changes he made to the existing structure to align it with the goals and values of the company as a way to gain more flexibility for innovation. [11:00] Stuart shares his take on why innovation is critical in the retirement space, despite litigation being a huge deterrent. He opens up about the class action lawsuit Intel was served following his changes. [14:45] Bob Hunkeler has a background in science and had never planned on managing corporate retirement plans. He shares the journey that took him to Switzerland and back to the States with an opening in the pensions department. [17:40] Bob touches on how the company philosophy has affected the roughly 18 billion dollars in retirement assets he manages. International Paper has both an IP savings plan and a 401k. Bob explains how they construct their portfolios as well as his take on decumulation. [21:35] Because there was a kind of vacuum in the retirement planning space and as such, Bob’s ideas and innovations were an encouraging way of filling this space. He speaks to his motivation for making headway in this space. [23:55] Putting their money where their mouth is, International paper provides a complete suite of retirement planning services to its employees. Bob speaks to the continued innovation he tries to drive in the company by building bridges. [25:44] Bob and Stuart share their takes on the title of the podcast! [28:46] Josh thanks his guests for sharing their stories and opens up the discussion for further innovation on the corporate side of the retirement planning space. The Accidental Plan Sponsor will be back this summer! 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 Stuart Odell on . More about Robert Hunkeler on . /episode/index/show/theaccidentalplansponsor/id/18622061

Episode 3 - Grading America's Retirement System 03/23/2021

Episode 3 - Grading America's Retirement System In the first two episodes of this series, we examined the history of the employer-based retirement system. But how is it working out today? The success of the creation and implementation of the employer-based 401(k) and other defined contribution retirement plans is seen not only in its exponential growth in all measurable metrics but also in the fact that it has succeeded in helping millions of Americans retire well. That said, the system, as it’s designed and operating today, is far from perfect, stranding some without access to the tools of a comfortable retirement and discouraging attempts at innovation. In this episode, host Josh Cohen asks respected industry leaders to grade the system on four crucial factors of success: Access, Adequacy, Alignment, and Innovation. Featured Guests: • Lori Lucas, President & CEO of the Employee Benefit Research Institute (EBRI) • Lew Minsky, President & CEO of the Defined Contribution Institutional Investment Association (DCIIA) Key Takeaways: [:34] How is the retirement system doing today? To answer this question, your host Josh Cohen recruited some of his long-time friends, who happen to be industry experts. [2:27] Lori Lucas is the President and CEO of the Employee Benefit Research Institute (EBRI). She shares what they do and how she came to be in this position. [5:04] Lew Minsky is the President and Chief Executive Officer of the Defined Contribution Institutional Investment Association (DCIIA). He talks about getting bit by the public policy bug and his journey to co-founding the DCIIA. [8:27] With the help of our experts we’re going to be grading the system according to 4 aspects, red pens out everyone. [9:24] Grade 1: Access. Lori weighs in with the ERBI research on 401k’s and grades according to organization size. Lew adds a caveat before handing out easy grades here. [13:29] Grade 2: Adequacy. Lew feels adequacy scores higher than access if one important condition is met, however Lori’s enthusiasm wavers. [18:00] Grade 3: Alignment. This relates to the sponsor entity’s interest being aligned with the successful retirement of employees. Lori’s grade is linked to the importance of promoting overall employee financial wellness. Lew offers that theory and practice diverge on this front and that there is an elephant in the room... [24:20] Grade 4: Innovation. DCIIA has been hosting an annual excellence and innovation award, Lew mentions that efforts will need to continue. Both Lew and Lori speak to the elephant of litigation coming back into the room. [27:48] Lori and Lew weigh in on the podcast name: The Accidental Plan Sponsor! [29:30] Josh offers a summary of the system, thanks Lew and Lori for their contribution to this episode, and opens up the discussion for episode 4 on how certain plan sponsors challenged the status quo and innovated in the retirement savings space. 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 Lori Lucas, President and CEO of the . More about Lew Minsky, President and CEO of the . /episode/index/show/theaccidentalplansponsor/id/18427268

Episode 2 - It Sings, But Will it Sail? The Birth of the 401(k) 03/09/2021

Episode 2 - It Sings, But Will it Sail? The Birth of the 401(k) At 40 years old, the 401(k) has become part of the bedrock of the employer-based retirement system. Tens of millions of Americans have socked away trillions of dollars in a retirement investment vehicle that has fundamentally changed the dynamic of how employers provide a secure retirement for their workers. Today, the 401(k) makes up more than $6.5 of the $9.5 trillion in workplace defined contribution assets. But in 1981, this nascent idea was trying to find its place amongst pension and various savings plans, and it was finding an audience that would propel it to prominence. Host Josh Cohen talks with Ted Benna, father of the 401(k), and Richard Stanger, the author of the 869-word insert to the US tax code that changed retirement. Key Takeaways: [1:15] Josh Cohen picks up where we left off following the birth of ERISA and welcomes two key players in the creation of the 401k: Richard Stanger and Ted Benna. [3:46] To better understand 401k’s Josh rounds up the history of profit-sharing plans — which is almost as long as the history of the United-States. [6:27] Richard Stenger shares the story of how he came to write the Revenue Act add-on, from President Carter’s election to the entrance of Barber Conable on stage. [11:46] “The beauty of it was that there wasn’t a lot of lobbying. Take a blank sheet of paper, forget the history of pension law: how do we create something that creates a fair distribution of contributions and benefits between rank-and-file employees and highly compensated employees?” — Richard Stanger [13:24] Ted Banner is often referred to as the father of 401k’s, he shares how he came into this title starting with what was called “thrift plans”, Coda Plans and getting a green light on 401k plans in 1981. [19:33] “They took us into a big auditorium and plopped me up in front of 25 of their top tax writers with their crossed arms like” what’s this country hick going to tell us? Less than an hour into the interview it switched over to how can we get that for us?” — Ted Benna [22:10] Ted shares his take — both the good and the bad — on what the employer role is in pension plans, as well as the benefits of the 401k. [24:56] Richard looks back with pride on the legacy of those 869 words he wrote. [26:20] Josh thanks both of his guests and closes out episode 2 of the Accidental Plans Sponsor and shares a teaser on episode 3: looking ahead. 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: Follow us on Mentioned in this episode: Richard Stanger wrote the 869 word add-on to the Revenue Act of 1978. Find him on Ted Benna took Richard Stanger’s idea and ran with it! Find him on /episode/index/show/theaccidentalplansponsor/id/18191240

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