New tax laws, market conditions and other factors unique to different industries are rapidly pushing change throughout retirement planning and executive benefits programs. Where once executive retirement was secure and uncomplicated, now it is fraught with uncertainties.

Pensions are harder to manage. Penalties are greater for mismanagement. Some plans are underfunded, many unfunded. Defined benefit plans are phasing out. The Employee Benefit Research Institute claims two-thirds of these plans will be gone by 2009.

Dramatic Shift

The shift away from defined benefit plans, where company sponsors determine investment decisions, to defined contribution plans, where participants are responsible to make their own investment decisions means both executives and employees today must be extremely active in retirement planning. It's about shouldering the part of the burden while plan sponsors limit financial liabilities.

In a defined contribution plan (DCP), executives have full responsibility for portfolio strategy, fund selection, asset allocation, performance tracking and tax implications. Realistically, how many top executives have the time, background or inclination to actively manage their retirement programs? And, if they do, most look at their investments separately.