This article is a response to comments on the Successful Employee Retirement Income Outcomes in the United States (SERIOUS), a comprehensive model for the delivery of employment-based retirement income.

The Successful Employee Retirement Income Outcomes in the United States (SERIOUS) is a comprehensive model for the delivery of employment-based retirement income.

This paper comments on the Successful Employee Retirement Income Outcomes in the United States (SERIOUS), a comprehensive model for the delivery of employment-based retirement income.

This has implications for the debate on the equity premium and for building successful investment strategies, and therefore may have particular relevance to the differences in returns obtained by defined-benefit (DB) pension plans and individual defined-contribution (DC) investors. Join us for an enlightening discussion on these and other investment issues pertaining to both DC and DB plans. Attendees will be able to compare and contrast DC and DB investment strategies in the interest of optimizing considerations in developing investment strategies.

Discussions will include an exploration of whether the increased flexibility to roll DC plan assets into a DB plan may appeal to plan sponsors, and the impact such a plan design would have on the risk profile of an employer’s DB plan.

The article reviews recent investment performance of stable value compared to other low risk alternatives, discusses current criticisms of the option, and concludes that they are not well founded. Criticism reflects a lack of openness to the full range of stable value contracts available and manager bias against traditional GICs, not a real lack of wrap capacity. Stable value continues to be the pareto superior low risk option.

Over the past decade, target date funds (TDFs) have become the most popular Qualified Default Investment Alternative (QDIA). In general, these strategies attempt to reduce investment risk as the investment horizon shortens. Dr. Robert Merton will describe the characteristics of investment strategies that could provide participants with downside protection similar to DB-plans and upside potential. Some of these characteristics include: • More appropriate measures of risk • De-risking assets that are not in available in today's DC plans • Risk taking driven by wealth relative to wealth goals, not investment horizon • Dynamically adjusted asset allocations that reflect experience, not predetermined allocations

This session will explore the key issues unique to a DC plan that must be considered when adding alternative investments, which include member’ behavior, liquidity needs and valuation methodology, as well as topics of concerns to both DB and DC plans, such as funding, pension committee’s education, fund structure and manager selection.

Book review of Steve Vernon’s Money for Life, Turn your IRA and 401(k) into a Lifetime Retirement Paycheck

Highlights of recent media contributions by actuaries.