PIMCO DC Dialogue

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The right thing to do.

In this PIMCO DC Dialogue, we talk with Jay Vivian about how to improve defined contribution plans. He focuses on the need for lifetime income in plans, as well as the importance of reducing costs and continuing to improve the investment structures within plans. Jay also considers target-date funds, including the attractiveness of custom strategies. He shares the importance of designing a target-date glide path that is tax efficient from an asset ‘location’ standpoint, given the other assets that participants may have outside the plan. Finally, he discusses why plan sponsors may want to encourage participants to remain in a plan at retirement and how to make a plan more attractive
to retirees.

January 2010

This issue features
an interview with
Jay Vivian, CFA®
Managing Principal
Corn Hill Associates,
retired Managing Director
IBM Retirement Funds,
former Vice Chair
Committee on Investment of
Employee Benefit Assets

Moderated by
Stacy Schaus, CFP^®,
PIMCO Senior Vice President and
Defined Contribution
Practice Leader

Volume 5, Issue 1

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DC Publications Archive (PDF):

PIMCO DC Dialogue:


	Issue 39	December 2009 "Plan for the worst, hope for the best. " a discussion with Robert Arnott, about how asset allocation has changed and the need to diversify assets.


	Issue 38	November 2009 "And the beat goes on. " a discussion with Kevin Vandolder, about plan sponsor concerns with Defined Contribution (DC) plans.


	Issue 37	October 2009 "Wishful thinking. " a discussion with Mike Henkel, about how asset allocation has evolved.


	Issue 36	September 2009 "Simplify, simplify, simplify. " a discussion with Charlie Claudio, about the redesign of defined contribution plans.


	Issue 35	August 2009 "Target-date strategies: On the hot seat. " a discussion with Marla Kreindler and Julie Stapel, ERISA attorneys, about activity in Washington, D.C., related to defined contribution plans, with particular focus on target-date strategies.


	Issue 34	July 2009 "A complete flight plan. " a discussion with David Fisser, consultant and former chairman of the Southwest Airline Pilots’ Association 401(k) Committee, about their pilots’ defined contribution plans.


	Issue 33	June 2009 "Don’t give up. " a discussion with Anna Rappaport, FSA, MAAA, about retirement-income adequacy. Anna focuses on retirement-income models and her concerns about the many risks such as longevity, years of work, and inflation that typically aren’t adequately captured in the models.


	Issue 32	May 2009 "Basics of life. " a discussion with Barbara Kontje, Director of the Retirement Plan Investments at American Express, about the company’s financial literacy programs, shares details on its financial planning help line and other planning support provided to employees.


	Issue 31	April 2009 "Shoot the Messenger? " a discussion with Norman Boone, MBA, CFP®, founder and president of Mosaic Financial Partners, Inc., co-founder of IPS AdvisorPro™ and co-author of Creating an Investment Policy Statement, about how investors have reacted to the recent market turmoil.


	Issue 30	March 2009 "Stay the course...or not? " a discussion with Roger Williams, managing director at Rogerscasey, about the impact of the market correction on defined contribution plan assets, participants and design.


	Issue 29	February 2009 "Diversify, diversify, diversify. " a discussion with Thomas Idzorek, chief investment officer at Ibbotson Associates, about designing target-date asset-allocation strategies to meet the needs of different populations.


	Issue 28	January 2009 "A penny saved is a penny earned. " a discussion with Paul Solman, business and economics correspondent for The NewsHour with Jim Lehrer, about the need for objective and entertaining financial and economic education in the U.S.


	Issue 27	December 2008 "Your best shot. " a discussion with Charlene Mims, vice president of benefits, HRIS and payroll at Dole Food Company, about its retirement programs.


	Issue 26	November 2008 "Fear before greed. " a discussion with Deena Katz, author, financial planner and associate professor at Texas Tech University, about retirement planning in the current economic environment.


	Issue 25	October 2008 "Smooth ride ahead. " a discussion with Ross Bremen and Rob Fishman talk with us about the evolving investment structure of defined contribution plans.


	Issue 24	September 2008 "Raising the bar. " a discussion with James M. Delaplane, Jr., Partner, at Davis & Harman, LLP, about current activities in Washington, D.C., as well as expectations for the upcoming presidential election.


	Issue 23	August 2008 "Take the money and run! " a discussion with Olivia S. Mitchell, Ph.D., about the current state of retirement financing in the U.S. Dr. Mitchell provides insights on the ability of defined contribution plans to fill the gap often left by defined benefit plans and emphasizes the need for higher savings rates.


	Issue 22	July 2008 "Keep the baby. Lose the bath water. " a discussion with Matthew Rice, Principal and Chief Research Officer at DiMeo Schneider & Associates, L.L.C., about the evolution of defined contribution plan investment structures. He shares his experience in working with plans of all sizes in establishing custom target-date strategies.


	Issue 21	June 2008 "Check it Out! " a discussion with Dan Holupchinski, Retirement Plans Manager at Deluxe Corporation, about the current structure of their defined contribution plans and the changes since the Pension Protection Act of 2006.


	Issue 20	May 2008 "Too thin on models. " a discussion with Mark Ruloff, director of asset allocation at Watson Wyatt, about retirement plan evolution. He discusses ways to design defined contribution target defaults to help meet retirementincome needs.


	Issue 19	April 2008 "A good-faith contract. " a discussion with Georgette Gestely, director of the New York City deferred compensation program, about the structure of their defined contribution, individual retirement account, and financial education programs.


	Issue 18	March 2008 "Change is good. You go first. " a discussion with Chris Rahan, senior actuarial advisor and retirement income practice leader at Ernst & Young about retirement-income issues in defined contribution plans.


	Issue 17	February 2008 "Are We There Yet? " a discussion with Pam Hess, director of retirement research at Hewitt Associates, about key trends in defined contribution plan design and changes that may be coming.


	Issue 16	January 2008 "Teach Your Children Well " a discussion with Dallas Salisbury, president and CEO of the Employee Benefit Research Institute, about nearly three decades of research and publishing on the American retirement system.


	Issue 15	December 2007 "I'm fast, I'm friendly and I'm lovin' it.™ ..." a discussion with Karen Barnes about about recent changes in the McDonald's defined contribution plans. We discuss managing and disclosing fees, offering managed accounts and financial planning support.


	Issue 14	November 2007 "Tailored to Fit" a discussion with John LaCara about the structure of his company's structure of their 457 and other retirement plans. He discusses why and how they tailored target-date strategies to their demographics.


	Issue 13	October 2007 "The path less traveled…" a discussion with Charles Stunkard and Matt Radgowski about advancements in defined contribution plan management and focus on why plan sponsors should consider retirement income needs as they manage their plans.


	Issue 12	August 2007 "Patience is a virtue..." a discussion with David Wray on how DC plans have evolved since the late 1900s until today when they serve as the primary company-sponsored retirement plan for the majority of American workers.


	Issue 11	July 2007 "No pain, No Gain" a discussion with Michael Riak on how Verizon has restructured their DC plans, including their new matching program, auto enrollment, and launching of custom target date strategies.


	Issue 10	June 2007 "I’d Gladly Pay You Tomorrow…" a discussion with Richard Thaler on how behavioral economics has impacted defined contribution plan design and recent legislation. We also explore what more needs to be done.


	Issue 9	May 2007 "Begin With the End in Mind": a discussion with Phil Suess on how plan sponsors are modifying their DC plans given the shift toward defined contribution as primary company-sponsored retirement programs.


	Issue 8	April 2007 “Into the Future...”: we explore with Susan Bradley the emotional and financial impact of receiving "sudden money." When we think of sudden money, winning a lottery or receiving an inheritance come to mind.


	Issue 7	March 2007 “Where's the Beef?”: a discussion with Zvi Bodie of Boston University and Kelli Hueler of Hueler Companies about the current movement toward target-date funds in defined contribution plans and their suggestions for a lower-risk investment path.


	Issue 6	February 2007 "To Build or to Buy: That is the Question": a discussion with Stuart Odell of Intel Corporation about the company's custom target retirement date, or "lifecycle," strategies.


	Issue 5	January 2007 “Just Tell Me, ‘How Much?’”: a discussion with Callan Associates on defined contribution plan fees and disclosures.


	Issue 4	December 2006 “Something for Everybody”: a discussion with New England Pension Consultants on the evolving investment lineup offered in DC plans.


	Issue 3	November 2006 “The Times They are a-Changin’”: a discussion with Winston & Strawn about the Pension Protection Act and its impact on defined contribution plans.

PIMCO DC Research:


		September 2007 Out of the Laboratory? Seven Essential DC Dialogues for Plan Sponsors


		January 2009 Defined Contribution Consulting Support and Trends


		November 2006 A Sensible Approach to Custom Target Retirement-Date Strategies


		January 2008 Defined Contribution Consulting Support and Trends