Pension reform and product innovation

The US Senate passed a major pension reform bill late last week. Lots of groups worked hard on this effort, and, as Diana Aviv, President of Independent Sector noted in her email about it:

"...the bill contains giving incentives that should attract needed resources to our sector. Among its provisions is an IRA rollover that marks the beginning of a major new initiative to encourage charitable donations."

So, who will create the new financial product that marries IRA rollovers, the end of employer pension contributions, and charitable donations? After all, it was similar legislation that led Charles Schwab to invent the discount brokerage and Ted Benna to invent the 401(K) Plan . Someone invented "socially responsible investing" and a Massachussetts company called SocialK has developed a 401(K) with a socially-responsible twist.

So, what's next? Employer defined charitable retirement deductions? Employer/employer retirement donor advised funds? And who is going to invent it? Perhaps the major vendors of donor advised funds (egads - you mean commercial gift funds and community foundations? Yes, that is who I mean) might invent it together....

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