Press release
T. Rowe Price Research To Highlight The Impact Of Defined Benefit Changes On Defined Contribution Plans
Suite of papers to reflect on the importance of defined benefit plans in glide path evaluation BALTIMORE, March 2, 2021 /PRNewswire/ -- T. Rowe Price
About this update from T. Rowe Price Group, Inc.
[{"type":"text","content":"Suite of papers to reflect on the importance of defined benefit plans in glide path evaluation\n\n\nBALTIMORE, March 2, 2021 /PRNewswire/ -- T. Rowe Price (NASDAQ-GS: TROW) has launched the first installment of a research series examining the complex issues faced by plan sponsors as they navigate how changes in defined benefit (DB) plans can affect outcomes for defined contribution (DC) participants. According to industry research from Willis Towers Watson, 55% of Fortune 500 companies still manage assets and liabilities in DB plans in addition to the DC plans they offer to employees1, underscoring the timeliness of T. Rowe Price's fresh exploration of how companies can make their plans work in sync.\nThe series will address the impact of DB plans on the design of glide paths used in qualified default investment alternatives (QDIA) and important considerations for plan sponsors in assessment and selection for their DC plans. The inaugural paper, \"Making the Benefit Connection,\" concludes that there is no single way to assess a DB plan's impact on glide path suitability. Instead, there is a need to advocate for flexibility and emphasize the importance of aligning the glide path to a sponsor's unique objectives.\nThis paper will be followed over the next several weeks by deeper dives into related topics, including: \nInstallment 2: Glide Path Evaluation Is Not an Easy Task Installment 3: Closed or Frozen DB Plans Present Unique Challenges Installment 4: Evaluating Opportunity Costs Installment 5: Taking Specific DB Plan Features Into Account Installment 6: Employer DC Plan Contributions Impact Glide Path Design Installment 7: The Potential Impact of DB Plans on Early RetirementContributing authors include, Justin Harvey, ASA, CFA, Head of Analysis, Multi–Asset Solutions; Andrew Jacobs van Merlen, CFA, Portfolio Manager; Adam Langer, CFA, Quantitative Investment Analyst; Lorie Latham, CFA, Senior Defined Contribution Strategist; Joe Martel, CAIA, CFA, Portfolio Specialist; Aaron Stonacek, FSA, CFA, Multi–Asset Solutions Analyst; James Tzitzouris, Ph.D., Director of Research, Multi-Asset.\nFollowing the release of the first seven papers in the series, an eighth installment is expected to address additional questions from plan sponsors and summarize conversations sparked by the first seven installments.\nQUOTE\nLorie Latham, Senior...