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week ending February 7th, 2020 Whether you’re a defined benefit (DB) or defined contribution (DC) plan sponsor, a well-created investment policy statement (IPS) can be your road map for investment selection and monitoring. A starting point in developing an effective IPS is to determine what investment categories you want to include in your investment lineup or investment portfolio. Fred Reish, partner in the employee benefits and executive compensation practice group of Faegre Drinker Biddle, says for DC plans, it is almost inevitable that plan sponsors will want to include target-date funds (TDFs). But there are many variables to consider when selecting which TDF series will be right for your participants. Looking at participant demographics will inform many decisions when it comes to investment selection and asset allocation. DC plan sponsors should also consider what investments or investment help will be right for pre-retirees and retirees. This edition of PLANSPONSOR Weekend offers information to help you with your investment decisions. Editor's Choice Investing Steps for Creating an Effective IPS While not required, a road map for investment selection and monitoring is a best practice, and sources now say the more detailed, the better. Investing Research Shows Positive Effects of TDFs Various beneficial changes to retirement savings portfolios made by investing in TDFs could enhance retirement wealth by as much as 50%, research suggests. Investing The Case for TDFs That Mix Active and Passive Management PIMCO says a mix of the two makes sense, especially assigning the fixed income portion of the portfolio to active management due to outperformance. Investing Consider the More Conservative Investments Pre-Retirees Should Hold With potentially lower future returns and low interest rates, plan sponsors should reexamine plan investments to help participants with retirement income. Investing Don’t Leave Retiring Plan Participants Hanging Many people are confused about how to invest in retirement, so they will need help before and after they do so. Popular Reads Compliance CARES Act Passes Congress, Including Retirement Plan Relief Plan sponsors who have faced regional natural disasters will be familiar with many of the relief provisions adopted by Congress, from the suspension of required minimum distributions to the doubling of loan limits. Compliance Retirement Plan Provisions Included in Senate’s Stimulus Package Among other things, the bill would allow for targeted, penalty-free access to tax-qualified accounts for those hit hardest by the health crisis. Administration Plan Sponsors Facing Difficult Decisions During Coronavirus Pandemic Stopping employer matching contributions, laying off employees, adjusting DB plan contributions; plan sponsors need to understand the effects of each decision. Ask the Experts Coronavirus-Related Distributions From 403(b) and Governmental 457(b) Plans Experts from Groom Law Group and Cammack Retirement Group answer questions concerning retirement plan administration and regulations. Compliance SECURE Act Eases Paths for DB Plans A new minimum age for in-service withdrawals and permanent nondiscrimination testing relief ease plan sponsors’ ability to keep older employees and protect their benefits. Did someone forward you this newsletter? Sign up here to get PLANSPONSOR Weekend directly in your mailbox!

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