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:

The Accidental Plan Sponsor

Mentioned in this episode:

More about Lori Lucas, President and CEO of the Employee Benefit Research Institute.

More about Lew Minsky, President and CEO of the Defined Contribution Institutional Investment Association.