Defined Contribution (dc) Plan Design & Risk Management: Optimize Dc Plans

Introduction:

Defined Contribution (DC) Plan Design and Risk Management equips professionals with the skills to optimize DC plan features and manage participant investment risk. This course focuses on designing effective plan structures, implementing robust risk management strategies, and enhancing participant engagement. Participants will learn to analyze plan demographics, evaluate investment options, and ensure compliance with regulatory requirements. By mastering DC plan design and risk management, professionals can improve retirement outcomes and enhance the financial security of plan participants.

Target Audience:

This course is designed for professionals involved in retirement plan administration, human resources, and financial management. This includes HR Managers, Benefits Administrators, Retirement Plan Consultants, Financial Advisors, Plan Sponsors, Compliance Officers, Investment Managers, Actuaries, Trustees, and Employee Benefits Attorneys. These individuals require expertise in DC plan design and risk management to effectively administer and optimize retirement plans.

Course Objectives:

• Understand the key principles of effective DC plan design.
• Analyze the impact of plan features on participant retirement outcomes.
• Implement strategies for managing participant investment risk.
• Understand the role of target date funds and other investment options.
• Develop strategies for enhancing participant engagement and education.
• Analyze the impact of plan fees and expenses on participant returns.
• Understand the regulatory and compliance requirements for DC plans.
• Implement techniques for evaluating and improving DC plan performance.
• Develop strategies for customizing DC plans to meet diverse participant needs.
• Understand the role of technology and innovation in DC plan administration.

DURATION

10 Days

COURSE CONTENT

Module 1: Introduction to Defined Contribution (DC) Plans

• Overview of DC plans and their role in retirement savings.
• Understanding the key differences between DC and defined benefit (DB) plans.
• Introduction to the principles of effective DC plan design.
• Setting the stage for optimizing DC plan features and managing risk.

Module 2: Key Principles of Effective DC Plan Design

• Analyzing the key principles of effective DC plan design (auto-enrollment, auto-escalation, matching contributions).
• Understanding the impact of plan features on participant behavior and retirement outcomes.
• Examining the role of plan flexibility and customization.
• Developing strategies for creating participant-centric DC plans.

Module 3: Impact of Plan Features on Participant Retirement Outcomes

• Understanding the impact of plan features on participant savings rates and investment choices.
• Analyzing the role of default options and investment menus.
• Examining the impact of contribution limits and vesting schedules.
• Developing methodologies for evaluating the effectiveness of plan features.

Module 4: Managing Participant Investment Risk

• Implementing strategies for managing participant investment risk (diversification, asset allocation).
• Understanding the role of risk profiling and investment education.
• Analyzing the impact of market volatility and economic conditions.
• Developing techniques for mitigating participant investment risk.

Module 5: Target Date Funds and Other Investment Options

• Understanding the role of target date funds (TDFs) in DC plans.
• Analyzing the benefits and limitations of different TDF glide paths.
• Examining the role of other investment options (index funds, actively managed funds).
• Developing strategies for selecting and monitoring investment options.

Module 6: Enhancing Participant Engagement and Education

• Implementing strategies for enhancing participant engagement and education.
• Understanding the role of communication and financial literacy programs.
• Analyzing the impact of technology and digital tools.
• Developing techniques for improving participant participation and savings rates.

Module 7: Impact of Plan Fees and Expenses on Participant Returns

• Analyzing the impact of plan fees and expenses on participant returns.
• Understanding the role of expense ratios and administrative fees.
• Examining the importance of fee transparency and benchmarking.
• Developing strategies for minimizing plan costs and maximizing returns.

Module 8: Regulatory and Compliance Requirements for DC Plans

• Understanding the regulatory and compliance requirements for DC plans (ERISA, IRS regulations).
• Analyzing the role of reporting and disclosure requirements.
• Examining the impact of fiduciary duties and prohibited transactions.
• Developing strategies for ensuring regulatory compliance.

Module 9: Evaluating and Improving DC Plan Performance

• Implementing techniques for evaluating and improving DC plan performance.
• Understanding the role of benchmarking and performance metrics.
• Analyzing the impact of plan design changes and investment strategies.
• Developing methodologies for continuous plan improvement.

Module 10: Customizing DC Plans to Meet Diverse Participant Needs

• Developing strategies for customizing DC plans to meet diverse participant needs.
• Understanding the role of demographic analysis and participant segmentation.
• Analyzing the impact of different plan designs on various participant groups.
• Developing techniques for tailoring DC plans to specific demographics.

Module 11: Technology and Innovation in DC Plan Administration

• Understanding the role of technology and innovation in DC plan administration.
• Analyzing the impact of digital platforms and mobile applications.
• Examining the role of data analytics and personalized communication.
• Developing strategies for leveraging technology to enhance plan administration.

Module 12: Behavioral Finance and DC Plan Design

• Understanding the impact of behavioral finance on DC plan participation and savings rates.
• Analyzing the role of nudges and behavioral insights.
• Examining the impact of default options and automatic features.
• Developing strategies for applying behavioral finance principles to DC plans.

Module 13: Decumulation Strategies and Retirement Income Planning

• Understanding the role of decumulation strategies in DC plans.
• Analyzing the impact of retirement income planning and distribution options.
• Examining the role of in-plan retirement income solutions and annuities.
• Developing strategies for helping participants manage retirement income.

Module 14: Case Studies and Best Practices in DC Plan Management

• Analyzing real-world case studies of successful DC plan management.
• Learning from best practices across different industries and plan sizes.
• Identifying key lessons learned and challenges in implementation.
• Discussing the role of innovation and adaptation.

Module 15: Future Trends and Action Planning for DC Plans

• Exploring emerging trends and opportunities in DC plan design and risk management (personalized advice, financial wellness programs, ESG integration).
• Developing action plans for advancing DC plan strategies within organizations.
• Analyzing the role of individual and collective action.
• Understanding the importance of long-term commitment and continuous learning.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 5 working days before commencement of the training.