The program is offered at no cost to the plan sponsor and enables retirement plan participants to benefit from target-date portfolios managed by Mesirow Financial Investment Management, Inc. that match their risk tolerance and investment time horizon.
OnePath Portfolios offers plan sponsors the selection of three glide path choices—high, medium and low equity. All three glide path options follow a “through retirement” methodology where the investment mix continues to adjust during retirement until the participant reaches the in-retirement portfolio at age 75. The portfolios will provide varying degrees of long-term appreciation and capital preservation through a mix of equity and fixed income exposure based on participants’ target retirement dates in five-year increments.
Mesirow Financial will change the portfolios’ respective asset allocation and associated risk levels over time with the intent of decreasing investment risk as each target retirement date approaches.
“By providing OnePath Portfolios, off-the-shelf target funds, and the ability to construct customized investment models, we work with plan sponsors and advisers to develop a solution that fits their needs,” said Pete Welsh, vice president of product and business strategy for retirement services at the companies of OneAmerica.
Mesirow Financial will act as an investment manager as defined in Section 3(38) of the Employee Retirement Income Security Act (ERISA), with respect to the OnePath Portfolios. Mesirow Financial will also monitor the investment options used in the portfolios and make changes as necessary. Additionally, if the plan fiduciaries wish, Mesirow Financial can also act as a co-fiduciary as defined in Section 3(21)(a)(ii) of ERISA, with respect to the selection and ongoing monitoring of the plan’s investment options.
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