RPA Develops Custom Investment Solutions for Alameda County DC Plans

Employee income-replacement study drives tailored solutions and better retirement outcomes | April 7, 2022


Alameda County, CA retained Retirement Plan Advisors, LLC (RPA) to design and implement custom investment solutions for its 401(a) defined contribution and 457(b) deferred compensation retirement plans.

While off-the-shelf target date funds (TDFs) provide reasonable asset allocation for the average plan participant, most plan participants are not “average.” Every individual has unique circumstances, especially as they near retirement.

Together the County and RPA conducted an in-depth study of income replacement for all County employees, identifying overall retirement readiness, individual income gaps, and at-risk employee segments. Using the data findings, RPA constructed three custom investment solutions designed specifically for County employees – not the average working American. The custom investment solutions reflect, for example, the actual retirement age and related benefits of County employees.

Per RPA President Josh Schwartz: “Financial markets are volatile and uncertain, and behavioral science demonstrates that investors don’t manage their assets well on their own. At the same time, plan ‘do-it-for-me’ investment solutions need to reflect the actual circumstances of the participants. Alameda County’s commitment to retirement readiness and implementation of custom investment solutions puts them ahead of the curve in driving better employee retirement outcomes.”

Per Alameda County Treasurer-Tax Collector Henry ‘Hank’ Levy: “We are excited to partner with RPA, our plan consultant and investment advisor, on implementing custom investment solutions for our employees. American workers are facing a retirement crisis, and average isn’t good enough. It’s incumbent on employers to find and offer better retirement solutions.”