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The Callan DC Index: Third Quarter 2010

"The Callan DC Index is an equally-weighted index tracking the cash flows and performance of more than 70 plans, representing greater than 800,000 defined contribution participants and more than $70 billion in assets. The index is updated quarterly and reflects 401(k) plans as well as other types of defined contribution plans."

At Chicago Pension Fund, Questions Raised on Conflicts of Interest

"Chicago pension officials wanted to know where to deposit the $11 billion that the city's teachers had saved for their retirement benefits, so they turned in 2014 to the outside consulting firm they'd hired for financial advice.... [W]hen the firm, Callan Associates, told pension trustees at a February meeting to give the cash to a bank called Bank of New York Mellon (BNY), the board's trustees agreed to follow the advice. What they were not told at that meeting, however, is that BNY pays Callan for both general consulting services and financial education programs."

Not All Retirement Plan Participants Pay Share of Revenue Sharing

Excerpt: [O]ne problem with the current system has gotten little attention: Using investment fees to pay for other aspects of 401(k) expenses means investors in some high-cost funds, like actively managed funds, pay a much greater share of a retirement plan's fixed costs than investors in more basic options like company stock or an index fund. 'The concern is it's not equitable,' says Lori Lucas, leader of consulting firm Callan Associates Inc.'s defined-contribution practice. 'Some people could pay almost all of the costs. Some could pay none of the costs. What funds you select can determine whether you pay or not.' A recent Callan study found that only one in eight plans that used revenue sharing actually had their entire menu of funds contributing to the plan's upkeep. In about a third of plans, half the funds or fewer contributed.

Fee Pressure Results in Move by Plans to Passive Investments

"Passively managed investment options are attracting greater interest among defined contribution plans thanks to plan executives' efforts to reduce fees, according to the latest Callan Associates annual survey ... The survey of 107 plan executives -- most of whom represent 401(k) plans -- show that 24.1% expect to increase the proportion of passive funds in their lineup compared to 12.5% who increased the passive-fund proportion last year[.]"

Testimony to ERISA Advisory Council on Successful Retirement Plan Communications for Various Population Segments

The target page (you'll need to scroll down to locate the particular content) includes the testimony of Donn Hess, JP Morgan, for the American Benefits Council; Linda Jacobsen and Donna MacFarland, Lincoln Financial; Jennifer Benz, Benz Communications; Lori Lucas, Callan Associates; Beth Boden, Aon Hewitt; and Morgan Gold, Catherine McCabe, and David Richardson, TIAA-CREF.

IBM's Plan for Once-A-Year 401(k) Match Draws Mixed Reviews

"'The research is mixed on the impact of matching contributions on participant behavior,' Lori Lucas, executive vice president and defined contribution practice leader at Callan Associates Inc., San Francisco, said ... 'Switching to an annual matching structure could reduce employee savings in the 401(k) plan, as participants usually list the match as the No. 1 reason they invest.'"

Long-Term Impact of Fees on Retirement Savings Calls for Push from Retail to Institutional Funds (PDF)

"[D]ifference in fees between retail and institutional mutual fund shares versus non-40 Act investment funds materially affect income replaced in retirement or the length that DC participants can expect to remain in retirement while maintaining a certain standard of living. Interestingly, although common wisdom suggests that non-40 Act funds are the exclusive purview of large plans, the authors' analysis suggests that even plans as small as $100 million in assets could benefit from fee reductions provided by moving to non-40 Act investment funds."

401(k) Plans Step into the Sunshine with New DOL Rules Requiring Fee Disclosures

Analysts and companies in the industry say the increased disclosure will allow companies to negotiate better deals and employees to request more cost-efficient plans. Already, the prospect 'is putting downward pressure on fees,' said [the] leader of consulting firm Callan Associates Inc.'s defined-contribution practice.

Direct Real Estate for DC Plans Seen as Growing Business (PDF)

Rather than creating a stand-alone direct real estate investment option, these managers are aiming to persuade plan executives and target-date fund managers to replace their REIT-only allocations with a direct real estate strategy in their target-date or asset-allocation funds.

A Guide to Sequence-of-Returns Risk for Public DB Plans

"Lowering ultimate net cost may be a priority for some public plans. Improving long-term investment returns is strongly associated with lower ultimate net cost. But it is not a guarantee of a better outcome, comes with high levels of risk, is subject to forces outside a plan's control -- and can even increase sequence-of-returns risk."