Firm aims to make DB plans a product advisers can sell

by Brooke Southall

This leading publication for financial advisors carried an article on small company DB plans on July 16th, quoting Karen Shapiro, CEO of Dedicated DB, the sponsor of the OnePersonPlus plan, as well as a number of financial advisors and industry pros. Selected highlights from the article follow.

"A lot of the tax code changes have made the defined benefit plan really attractive to small business, and we're finding an appetite from financial planners, financial advisers and CPAs."
--Karen Shapiro
CEO, Dedicated DB, LLC

The article summarized the regulatory changes including:

• A jump last year of $180,000 from $160,000 in annual benefits a retiree can receive
• The Pension Protection Act of 2006 sweetened the deal by allowing a plan sponsor to deduct up to 150% of the current unfunded liability of the plan."

"Sophisticated people have known about it [these plans] for years, but because of advisers, the word's getting out, and it's starting to spread. Advisers used to hear 'DB and think "actuary' and icky."
--Brian Graff
Chief executive of the American Society of Pension Professionals and Actuaries

"The administrative hassles are minimized to the point where it [small company DB plans] makes sense."
--Russ Charvonian
Partner with The Renaissance Group LLC

"Advisors clearly like the product, considering that most of those who sell it make themselves the first customer."
--Catherine White
VP and product manager of Single DB Plus at OppenheimerFunds


Click here to read the full article.