Page 105 - DCAC December 2024 Files

P. 105

Understanding Collective Investment Trusts (CITs)

CITs, also known as collective investment funds, collective trust funds, common trust funds or
common funds, are tax-exempt, pooled investment vehicles maintained by a bank or trust
company (the “trustee”) exclusively for qualified retirement plans that are exempt from federal
income tax, including, 457(b) governmental deferred compensation plans, 401(k) plans, defined
benefit plans, Taft-Hartley plans and certain other plans. Like mutual funds, they comprise an
investment portfolio managed by a professional with a defined objective. Unlike mutual funds, a
host of regulatory rules limit the eligibility of CIT investors. This session will review the structure
of these investment vehicles compared to mutual funds and the pros and cons of each.

Completing the Journey – Considerations for Post-Employment Considerations

The retirement plan industry has invested considerable resources into programs, products, and
services intended to boost participation, increase contributions, and offer professionally
managed investment solutions. These initiatives have produced better outcomes for many
participants, but retirement plan participants often benefit from assistance with handling post-
employment decisions. This session will review the benefits for terminated and retired
participants remaining in their employer sponsored retirement plans and the potential dangers
associated with rollover distributions, along with an update on the Retirement Security Rule,
which is intended to provide some protections to former participants. Additionally, the session
will provide considerations for building retirement plan that promotes post-employment
participation, including the following considerations:
• Monitoring Distribution and Rollover Activity

• Reviewing Plan Provisions
• Retirement Income Products and Services

• Managed Accounts

• Pre-Retirement Education Workshops

• Distribution Checklist / Worksheet

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