Answering the Economic Call Institute to Provide Pension Plan Leadership By Geralyn M. Miller, Ph.D.
Economic development policies in the 21st century have evolved into a complex set of strategies. Unlike the early theories of the 1970s, today’s policies are based on a broader philosophy.
As the National Council of State Legislatures points out, the new economy requires us to engage in policies that go well beyond the single approach of trying to attract new businesses to a state. Today, we need to concentrate our efforts on such things as improving the competitive edge of our existing businesses through enhancing productivity and developing new products. We must be cognizant of the fact that while technology dictates the demise of jobs in certain industries it spurs the growth of jobs in others.
Furthermore, as times change, a reliance on public-private partnerships is increasing – based on the recognition that the marriage of governmental, academic and corporate resources is the most cost effective means of providing citizens the goods and services they require in this new millennium. We have moved into a time when economic development requires us to maximize the use of all available resources.
The road to economic growth in Indiana has not been an easy one to travel. The brain drain that the state has been experiencing is not news to anyone. We have known for quite some time that Indiana loses a good number of its educated workforce on a regular basis. In fact, a 1999 study for the Indiana Chamber by the Indiana Fiscal Policy Institute indicated that Indiana may be retaining nearly 30% fewer college graduates than the national average.
The reason has been identified, largely, as the result of a lack of sufficient numbers of attractive jobs available to college graduates upon completion of their education. Perhaps, though, given what we now know about economic development, it isn’t a matter of simply creating more jobs, but rather one of matching the educational knowledge and skills to the needs of the existing businesses. If our existing businesses have the talent necessary to improve their competitive advantage, they will grow and, in turn, provide additional jobs and opportunities. So, in addition to importing businesses, which we fully expect will happen, we need to grow the ones that already exist.
This, in part, is the logic that dictated the creation of the Institute for Pension Plan Management at Indiana University-Purdue University Fort Wayne. Indiana has a strong and viable retirement planning industry presence as home to some of the most respected pension plan providers in the business. This is one of the industrial bases that we can, through careful nurturing, cultivate and grow.
Members of the retirement planning industry have indicated that it is a challenge to find qualified, well-trained candidates to fill the positions that are available. When individuals are hired, they must go through extensive training. The Institute for Pension Plan Management will be able to provide a pool of trained candidates ready to step into those positions and hit the ground running. It will also provide online training courses for existing workers.
Additionally, the more knowledge that members of the industry have access to, the more they enhance their chance for productivity and eventual growth. The Institute will engage in research designed to assist the industry with that information gathering and sharing. Until now, those efforts have taken place largely on an individual basis. Researchers address key retirement planning questions in isolation rather than in tandem with other researchers. Few universities have engaged in extensive research on behalf of the retirement industry. The Institute will provide a hub for this collaborative research activity along with the vitally needed training programs and, therefore, will offer a more extensive and complete package of assistance to the industry as a whole.
As we enter an era in which the baby boom generation becomes eligible for retirement, we face a crucial time in the distribution of our retirement benefits – particularly given the difficulties faced with our national Social Security program. Indiana can and will become a leader in this arena and the Institute for Pension Plan Management has come into existence to assist in fostering this leadership. The Institute will work not only with Indiana’s retirement planning professionals, but those across the country to help forge new ground toward securing the retirement income of America’s citizens.
Author: Geralyn M. Miller, Ph.D. is an Associate Professor and Director of the Institute for Pension Plan Management at Indiana University-Purdue University Fort Wayne. She can be contacted at (260) 481-6350 or millergm@ipfw.edu
Answering the Economic Call