Investment Policy Statement (IPS) Considerations for Today’s Defined Contribution (DC) Plans

TRA [The Retirement Advantage]

The investment policy statement (IPS) is not a static document. Changes in the macroeconomic, inflationary, and regulatory environments call for an ongoing reevaluation of any IPS and prudent plan officials seek to incorporate these changes on a timely basis.

Therefore, with myriad changes to consider given today’s investment and regulatory environment, and the rapidly developing world of investment products and portfolios, DC investment fiduciaries are taking a fresh look at their overall IPS approach and process. In doing so, many DC sponsors and fiduciaries are recognizing that many IPSs are out of date. An outdated IPS can create gaps in the overall risk management strategy.

In this presentation, we review the history and purpose of an IPS in DC plans. Then we’ll look at some changing trends, regulations and market conditions that might impact traditional IPS language. Then we will dive deeper in to some potential IPS gaps and problems plan committees can address with timely IPS amendments and updates. Lastly, we will explore managed accounts and their unique evaluation and monitoring challenges within the IPS.

Learning Objectives

• Create a general understanding of the history and purpose of defined contribution (DC) investment policy statements (IPS). 
• Realization of how changing trends, regulations and market conditions might impact IPS language. 
• Updating managed account language and processes within the IPS. 
• Consideration of pending changes and the need for timely IPS amendments. 
   

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