ProManage selects the investment funds for PROgram managed accounts from those available to plan participants. We will use 100 minus age as the equity asset allocation rule, unless a client chooses an alternative such as 110 minus age or 120 minus age.
Usually, the maximum equity allocation for any participant is 90% and there is no minimum equity allocation.
Our design process begins with the following concepts which can be refined in consultation with the Plan Sponsor. ProManage projects the present value of Social Security and Defined Benefit plan benefits, and includes them in our asset allocations. They are treated as fixed income investments and, therefore, reduce the allocation to fixed income assets. We do not project the present value of Social Security after age 65 because we assume it is being paid-out. We will take into account the value of Defined Benefit plan benenfits if they are supplied to us for those over age 65. The result is our allocations are directed more to fixed income, and are more conservative after age 65.
Similarly, we typically do not take into account participant assets outside an employer's plan. We cannot get the reliable, routinely updated information on outside assets necessary for accurate asset calculations.