Defining Success with DB Plans

Welcome to my Defined Benefit (DB) Blog!

How do you spell DB? I probably asked myself that same question early on in my career in the retirement services business.

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With so much industry attention given to defined contribution plans, the topic of defined benefit often gets thought of like that old, stodgy uncle who smells kind of funny and is generally avoided at family gatherings.

The truth is, there are a lot of exciting things happening in the world of DB. I’ve been in the retirement industry for more than 20 years, providing service to the largest retirement plan clients at the Principal Financial Group®. Currently, I manage our defined benefit operations area, and I’m excited to bring my uniquely DB perspective to this blog.

Since you’re reading this blog, I’ll assume you have a basic knowledge of how a DB plan works. But what you may not know is that the development of new DB products and services is as active now as it has been for a long, long time.

The newest DB developments

De-risking is a great example. This topic is getting a lot of press in industry circles, and several innovative solutions have been brought to the market.

Very simply put, to de-risk a DB plan is to take action to try to manage the volatility and/or cost of the plan. There are many de-risking strategies that can be used, so this will be among the first topics I discuss in my blog.

In addition to the de-risking topic, I’ll discuss issues like:

  • Liability-driven investing (LDI)
  • The importance of data management
  • Bundled vs. non-bundled service packaging
  • Frozen plan strategies

What do you want to know?

I look forward to hearing from you about which DB topics are of interest to you. Please post comments to my blog, and I will be happy to reply.

DB plans = $2.37T in assets

Did you know that DB plans in the United States still represent $2.37T in retirement assets, compared to $3.75T in defined contribution assets[1]? Although the number of DB plans in the U.S. is declining, DB plans still represent a significant part of our country’s retirement system. I’m sure glad I know how to spell DB!

In addition to blogging here, I also tweet regularly about DB topics of interest. Click to follow me on Twitter- @scottruba.

Click here to follow my Defined Benefit blog

Affiliation Disclosures

Insurance products and plan administrative services are provided by Principal Life Insurance Company a member of the Principal Financial Group® (The Principal®), Des Moines, IA 50392.

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[1] RRI, May 2012

  • Lucy

    good job guys