Carol Zurcher, CPA, of Winter Park, Fla., sent me a nice e-mail about my column on the strengths of the Dutch pension system, which has generated a spectacular lack of interest from Curious Capitalist readers. Here’s what she had to say:
Thank you for your article “Where Retirement Works.” A large part of my practice is in designing, implementing and administrating defined contribution plans (not investing). I am an advocate of Group–Trustee Invested Plans, rather than Individual Self-Directed Account Plans. The Group–Trustee Invested Plan design provides plan participants access to money managers that they generally would not have access to.
The Self-Directed Account plan design is creating a system of information and administration overload. This additional information is not going pay any retirees benefits. Guidance such as Section 508 of the Pension Protection Act of 2006 and the Department of Labor’s FAB 2006-03, although well intended, may in the long run increase the administration burden on small employers to the point where it is no longer cost effective for these employers to offer plans.
It is refreshing to see an article that supports the risks being shared by all plan participants and assets being managed by professionals.
So there you have it. I see some very catchy slogans for my incipient pension-reform movement here:
Question Section 508!
FAB 2006-03 Isn’t Necessarily So Fab!