Mantle’s CCA Insights: Demographic Shifts and Plan Administration Challenges: Navigating the New Normal

We caught up with Mantle’s Danielle Wilson and Matthew Leathem on their key insights learnt from attending the recent CCA conference. 

The CCA conference provided a fascinating look at the seismic changes reshaping the global landscape – from demographic decline in the developed world to the explosion of population growth in emerging markets. These trends have profound implications, not just for geopolitics, but also for those managing retirement plans. 

The “Shape of Things to Come” session presented by The Terry Group, Global Aging Institute and LifeCourse Associates explored how birthrates have collapsed across much of the developed world, leading to aging populations, shrinking workforces, and mounting fiscal burdens. Meanwhile, Africa’s population is set to outpace Europe 6x by 2100. This shift could fuel the rise of isolationism, protectionism, and even conflict as established powers feel threatened by emerging ones.   

However, the session also explored potential solutions to stave off demographic and economic decline, from implementing pro-natal policies like Poland’s significant child benefits, to increasing immigration and extending working lives. These strategies could help countries navigate the economic and geopolitical challenges of the twenty-first century. 

But the demographic transformation also creates challenges closer to home for retirement plan administrators. The “Small Plan Administration and Corrections” session dived into the unique complexities facing small plan managers, from eligibility issues to miscalculated benefits. Experts from National Professional Planning Group, Poyner Spruill and Pinnacle Plan Design, LLC highlighted the IRS correction programs available, but also underscored the importance of staying on top of an ever-evolving regulatory landscape. 

In-house plan administration, more common in the US than the UK, brings a higher risk of errors. And with just 18 months to identify and rectify problems, the stakes are high. Throw in nuanced accounting standards and tricky overpayment structures, and it’s clear that small plan admins have their work cut out for them. 

The demographic and regulatory trends reshaping our world are not going away anytime soon. But by staying ahead of the curve, retirement plan professionals can navigate these choppy waters and ensure their plans remain compliant and their participants are properly served. 

Mantle’s Founder and Director, Mike Selby commented on the CCA: “The conference really highlighted both the challenges and opportunities in the US market. While there are unique elements to consider, we’re confident that our deep understanding of the pension space not only translates well but can bring a fresh perspective to the US market. The demographic challenges we’re seeing are global in nature, and our experience in navigating similar transitions in other markets positions us well to add value here. 

We were really impressed with the CCA Annual Meeting and are looking forward to attending again next year.” 

To find out more on each of the sessions discussed above including Mantle’s presentation, visit the CCA website here.