PLANADVISER - September/October 2022 - 13

retail, where turnover is high, having a vesting schedule can make sense to employers. "
It saves the company money when a worker leaves quickly and might motivate people to
stay, he says. Even given that strategic value, he says, " The reality is, vesting might be a
dying breed, in this post-COVID-19 workforce. We live in an instant-gratification world:
People want it now. "
The Changing Conversation
According to Droblyen, a company's decision about vesting " boils down to a trade-off.
You need to pick what you think is more valuable to your business. "
DeBello says he has read with puzzlement the media criticism of employers using
a vesting schedule. He says he sees no unfairness in promoting an employer match as
" free money, " while also having multiyear vesting.
" We very rarely see employers that tout, 'It's free money with no strings attached.' "
Most participants can see both their total balance and vested balance on the recordkeeper's
website, and group education meetings cover the topic, he notes. " I don't subscribe to
the idea that this is some kind of 'bait and switch' or mystery to employees. " -Judy Ward
talking points
A Glide Path for All?
Several variables contribute to the best choice of glide path-e.g.,
industry, salary, planned retirement age, expected dependence on Social
Security-and how much risk a worker could afford to take. Yet, says a new
white paper, most plans employ one of just five popular glide paths, which
" seems to indicate that plan sponsors may not be consistently considering
the specific needs of their worker population when selecting a glide path. "
Average equity exposure at: n Age 55 n Age 65
66%
47%
$30,850
Mean wage
3.4%
Working after
age 65
Accommodation and
food service
66%
47%
$60,070
Mean wage
6.6%
Working after
age 65
Health care and
social assistance
66%
47%
$37,210
Mean wage
18.7%
Working after
age 65
Agriculture, forestry,
fishing and hunting
66%
48%
$91,930
Mean wage
7.0%
Working after
age 65
Information
66%
47%
$81,420
Mean wage
7.6%
Working after
age 65
Finance and insurance
67%
47%
$57,620
Mean wage
5.3%
Working after
age 65
Manufacturing
Sources: Bureau of Labor Statistics sector information for wages and percent working after the age
of 65; Morningstar Center for Retirement & Policy Studies, " Right on Target "
➜ Commonwealth
Financial Network hired
Michelle Kelley. As
senior vice president,
deputy general counsel
and chief privacy
officer, she will lead
their legal department
and provide counsel
on cybersecurity and
privacy laws, partnering
with the firm's information
security team.
planadviser.com September-October 2022 | 13
ON THE MOVE
➜ Lisa Gomez was
confirmed, in a 49-36
Senate vote, as the new
assistant secretary of
labor for the Employee
Benefits Security
Administration.
➜ J.P. Morgan
Asset Management
appointed Steve
Rubino as head of
retirement and chair
of the firm's defined
contribution operating
committee.
➜ Managed account
provider Stadion
Money Management
added Jackson Reese
and Tom Stephenitch
as vice presidents and
retirement consultants.
➜ Mariane Lee joined
Hub Retirement and
Private Wealth, part of
Hub International Ltd.,
as chief compliance
officer.
➜

http://www.planadviser.com

PLANADVISER - September/October 2022

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