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ICI Workshop on Enhancing Understanding of Target Retirement Date Funds
September 23, 2009

On September 23, 2009, the Investment Company Institute hosted a workshop on Enhancing Understanding of Target Retirement Date Funds. The purpose of the Workshop was to discuss, in a roundtable format with a broad range of experts, issues relating to the type and quality of information about target retirement date funds available to both employers and plan participants, and whether and how that disclosure might be improved to enhance understanding of the funds. 

You can view the Workshop discussions below by clicking on the links under the respective Workshop Panels.

PROGRAM

Introductory Remarks by Karrie McMillan
General Counsel
Investment Company Institute

PANEL 1: Understanding the process by which employers select and add target retirement date funds to plans

How does the employer decision-making process work? What questions do employers ask their consultants and providers? What information is presented to employers as they select target retirement date funds? How do employers monitor target retirement date funds? What information do they receive? Are there any gaps in information or employer understanding in selecting or monitoring funds?

  • John Ameriks, Moderator
    Principal, Head of Vanguard Investment Counseling & Research Group
  • Tom Fontaine
    Head of AllianceBernstein Defined Contribution Investments
  • Allison Klausner
    Assistant General Counsel (Benefits)
    Honeywell International Inc.
  • Dave Reichart, CFA
    Head of Business Development
    Principal Funds             

PANEL 2: Understanding how information about target retirement date funds is communicated to participants

What information do target retirement date fund investors get or have available, including disclosure documents, fact sheets, and web materials, and how is it presented? How are target retirement date funds covered in plan educational materials and outreach to employees? What safeguards are in place for the quality of the materials that target retirement date fund investors receive? Are there any gaps in the information? What do we know about investors’ understanding of target retirement date funds?

  • Jon W. Breyfogle, Moderator
    Partner
    Groom Law Group             
  • Lori E. Bostrom
    Vice President & Deputy General Counsel

    OppenheimerFunds, Inc.
  • James Sia
    Vice President and Director, Defined Contributions

    Wellington Management Company
  • Carol Waddell
    Director of Product Development

    Vice President, T. Rowe Price Retirement Plan Services, Inc.           

PANEL 3: The relationship between automatic enrollment and target retirement date funds

How does the automatic enrollment process work? What information do auto enrollees get about plan default investments, and what is the quality of that information? How many target retirement date fund investors are auto enrollees? What, if anything, do we know about them? Are there any gaps in information or understanding about target retirement date funds as default investments?

  • Donald J. Myers, Moderator
    Partner
    Morgan, Lewis & Bockius LLP
  • Michael Campbell
    CFO
    GEICO
  • Ralph C. Derbyshire
    Senior Vice President, Deputy General Counsel
    Fidelity Investments
  • Eric J. Freedman
    Chief Investment Officer

    CAPTRUST Financial Advisors

PANEL 4: Recommendations

Are there additional steps providers can take to enhance understanding of target retirement date funds? Are ICI’s Principles to Enhance Understanding of Target Date Funds on the mark? Will they be used? What else should plans and employers do to assist workers in understanding target retirement date funds? What should the SEC and DOL do? Would changing fund names be helpful or confusing? How do we assure that any reforms apply to all target retirement date products?

  • Karrie McMillan, Moderator
    General Counsel
    Investment Company Institute
  • Brian Reid
    Chief Economist
    Investment Company Institute
  • David Abbey
    Managing Counsel and Vice President
    T. Rowe Price Associates, Inc.
  • Chip Castille
    Head of U.S. Defined Contribution Product Development
    Managing Director
    Barclays
  • Anne Lester
    Senior Portfolio Manager and Managing Director
    J.P. Morgan Asset Management
  • John Rekenthaler, CFA
    Vice President, Research
    Morningstar, Inc.

*For other information on target retirement date funds, go to the Target Retirement Date Funds Resource Center.