Overview

2018 Event organized by:

Case Topic: Defined Contribution Plan Design

Defined contribution plans, including 401(k), 403(b) and IRA plans now exceed $7 trillion in assets and are the primary tax-deferred retirement savings tools used by U.S. workers. Despite their size, individual account owners are required to manage their sizable assets with little training and understanding of investments. One of the challenges for investment managers is to offer investment options that are simple to understand, yet effective in matching portfolio strategy with the goal of keeping employees on track to replace their working income in retirement.

The 2018 IPCC case includes a description of a company sponsor that seeks a custom DC plan that is tailored to management goals and company culture. Student teams will need to study the unique characteristics of the client and design a set of state-of-the-art investment options that is based on rigorous investment theory yet are also easy for employees to understand and use. Students will have the opportunity to think outside the box and apply their asset allocation modeling skills to this special challenge based on a real business situation.