|
|
|
|
 |
|
Defined Contribution Transition Solutions
Protecting the value of DC Plan Investments
Changes mandated by the Pension Protection Act of 2006 and the proposed rules from the Department of Labor have sparked the need for sophisticated, customized solutions for DC assets in transition.
How Are DC Plans Using Transition Management?
Implementation is a vital component of defined contribution investment solutions through:
| |
- Fund and manager changes
- Investment option additions, deletions and replacements
- Asset shifts to meet benchmark changes—particularly due to target date fund migrations over time
|
Key DC Transition Challenges
A primary concern of a DC plan sponsor is no different than that of any other transition client—completing the transition with the maximum amount of asset value for the plan participants.
But major operational challenges can arise for DC asset movement. These challenges are due to the structure of DC plans in the following areas:
| |
- Often a large number of securities accounts are involved
- Possible participant trading "blackout" periods may be required
- Cash flows may occur during the asset transition
- Need for timely Net Asset Value (NAV) pricing of all underlying funds
- Communication about the transition should be seamless to the plan's custodian and participant recordkeeper
|
Why Russell?
Due to these significant operational—and related headline risks—it is crucial to engage a transition manager with direct and comprehensive experience with DC transition management.
We provide:
| |
- Over 25 years experience with transition management, including experience with complex DC plan structures
- Help to avoid participant "blackout" periods if necessary. (Alternately, we can work with you through these periods to reduce risk)
- Manage incoming cash flows while protecting existing plan assets
- Seamless electronic reporting to custodians allowing for accurate and timely Net Asset Value (NAV) pricing
- Web-based communication and reporting tools that link client, custodian, recordkeepers and investment managers through WebTM™. Learn more about WebTM™.
|
To learn more about our transition management services, please contact Bill or Gerry:
Russell Implementation Services Inc., member NASD, SIPC. www.nasd.com
Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.
USIMSLRC3038
|
|
|
| |
Related Information |
|
|
|
|
