Episode summary
401(k) Real Talk Episode 204: August 5, 2026
Summary
OCIO assets in defined contribution plans are accelerating quickly, with Fred Barstein citing a 400% rise to $580 billion over the last eight years. He said the growth is being driven by larger plans, a desire to outsource fiduciary risk, rising investment complexity, especially alternatives, resource constraints, and stronger buying power. He also pointed to a related trend in advisor-sold plans through 338 services, which he said may already represent $30 billion to $40 billion in outsourced fiduciary investment work.
Barstein also highlighted Empower’s strong quarter, saying the firm topped $2.1 trillion in assets, up 10% sequentially, while earnings rose 6.3% and 36% year over year. He noted wealth assets climbed to $122 billion, with nearly 20 million participants and 1.2 million wealth-management clients, and tied that growth to Empower’s push to combine retirement, wealth, and benefits services at the workplace.
The episode then turned to a potential CFPB reversal on data-access rules that could let banks and custodians charge for customer data, with major implications for DC advisors and plan sponsors that rely on clean data feeds. Barstein also questioned the common narrative of an advisor shortage, arguing that the problem may be overstated because many advisors have not fully adopted technology and AI. He closed by asking whether pooled employer plans are becoming mainstream or remain a niche product.
Key takeaways
- Fred Barstein said OCIO assets in defined contribution plans have surged 400% to $580 billion over eight years, with the biggest gains coming from plans over $1 billion.
- He said advisor-sold 338 services may already represent $30 billion to $40 billion of outsourced fiduciary investment work.
- Barstein said Empower’s assets topped $2.1 trillion in Q2 and that wealth assets rose to $122 billion, up 40% from a year earlier.
- He argued the looming advisor shortage may be overstated because many advisers have not fully used tech and AI to boost productivity.
- He said a CFPB reversal on data-access rules could create major fee opportunities for banks and custodians and reshape how DC data is delivered.
Notable quotes
“OCIO assets from DC plans have surged by 400% to 580 billion over the last 8 years”
“The impetus behind this trend by plan sponsors includes the desire to outsource fiduciary risk, growing complexity of investments, especially alts, resource constraints, and greater buying power”
How the episode opens
Greetings and a warm welcome to this week's edition of 401k real talk. This is Fred Barcstein, contributing editor at Wealth Management's RPA, Omni Channel, and CEO at Trow, TPSU, and 401k TV. I review all of this week's stories and select the most important and interesting ones, providing open, honest, and candid discussion you will not get anywhere else.
So, let's get real. First story, OCIO assets from DC plans have surged by 400% to 580 billion over the last 8 years according to PNI and DB assets hitting 675 billion but just up 51% with the vast majority coming from plans over a billion dollars. Goldman Sachs recently became the OCIO for Lockheed and Verizon adding over $60 billion.
A similar trend is occurring with advisor sold plans in the form of 338 services which almost no one charges more than 321 perhaps with an estimated 30 to 40 billion or another form of fiduciary investment outsourcing. The impetus behind this trend by plan sponsors includes the desire to outsource fiduciary risk, growing complexity of investments, especially alts, resource constraints, and greater buying power. Next story, Empire topped 2.1 trillion in assets in Q2, up 10% from the previous quarter with earnings surging by 6.3% and 36% yearover-year.
Wealth assets climbed to 122 billion, up 40% from last year. They now boast almost 20 million participants and 1.2 million CL wealth management clients to help participants navigate every stage of life. Empower has leaned into the convergence of wealth, retirement, and benefits at the workplace through the 2021 acquisition of personal capital and the recent purchase of Milleman's DB and benefits administration.
Next story. Though some believe data should be free, an expected reversal by Trump's CFPB could result in banks and custodians raking in billions of dollars in fees, mostly from data aggregators like Plaid.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- ocio for defined contribution
- retirement plan earnings and sales
- cfpb data fee rules
- financial advisor supply
- pooled employer plans
Companies and tickers mentioned
- EMP
- JPM
- SCHW
- Mercer
- NEPC
- Cerulli
- Empower
- JPMorgan
- Fidelity
- Charles Schwab
- Strongpoint Partners
Watch the episode
Watch “401(k) Real Talk Episode 204: August 5, 2026” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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