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A company’s defined benefit (“DB”) pension plan frequently represents the company’s single largest asset. DB plans can be cumbersome to administer and can represent a significant amount of risk to a company’s balance sheet. Many plan sponsors manage their plans through an inefficient network of providers, which leads to incorrect information, undetected financial implications, slower processes, and higher costs.

We bring 40 years of benefits consulting and experience in helping plan sponsors with their DB plans (whether active, closed, frozen, or terminated) with administration, risk management, and expense management.


First to Market

Our long-standing, consulting heritage is a core component on how we approach working with our clients and we are a recognized leader in the industry. We were first to market on many issues, including:

  • Wide range of fiduciary solutions to help plan sponsors mitigate their risk as plan fiduciaries.
  • Full fee and revenue disclosure so plan sponsors have true transparency in the fees and expenses of their retirement plan.
  • Open investment architecture to allow plan sponsors access to investments most appropriate to their DB plan.
  • Providing proactive education to plan sponsors to help them be more knowledgeable about managing their retirement plan.
  • True system integration so that multiple plans (including plan types) can be integrated seamlessly for the plan sponsor.
  • Daily valuation of DB plans.


Services

Year after year, we continue to receive service accolades from our clients from both proprietary and industry surveys. That’s because each of our clients works with a team of experienced professionals whose goal is to make the administration of your retirement plan less of a burden on your staff. Our services include:

  • Defined benefit plans (traditional, hybrid, and cash balance) on a daily platform
  • Risk management analysis and solutions
  • Actuarial services and consulting
  • Valuation results within weeks of plan and fiscal year-ends
  • ERISA and consulting services
  • Compliance testing
  • Total retirement design studies
  • Trustee and custodial services
  • Investment services and consulting
  • Integrated administration and servicing with a 401(k) plan
  • Executive benefits
  • Plan sponsor website
  • Employee communications and education programs
  • Participant website
  • Participant service center


A Case Study

During the analysis of a plan’s documentation, data, and previous administrative practices we discovered:

  • Overpayment of $150,000 to deceased retirees
  • Miscalculated benefits in excess of $250,000
  • Lost opportunity to minimize past employer contributions
  • Investment allocation off the efficient frontier

Our solutions:

  • Corrected benefit calculation methods
  • Changed actuarial funding method to reduce future contributions
  • Revised investment lineup to help reduce risk positions

Total economic impact:

  • Recovered over half of the overpaid benefits
  • Lowered projected annual distributions by $250,000
  • Leveled fluctuations of anticipated employer contributions
  • Helped reduce investment risk exposure

© 2012 New York Life Investment Management LLC. All rights reserved.