Employee Benefit News

A treetop-level look at 401kExchange's 2009 Provider Ratings Report

Financial education in 'living color'

All eligible employees may have equal access to their employer's 401(k) plan, but participation is anything but equal. A study by Ariel Investments and Hewitt Associates, "401(k) Plans in Living Color: A Study of 401(k) Savings Disparities Across Racial and Ethnic Groups," confirms what individual client studies have shown for years - that ethnicity is the No. 1 predictor of 401(k) plan participation. Supported by the data of 3 million 401(k) participants, researchers concluded that African Americans and Latinos save less, invest less aggressively in stocks and, as a result, have lower 401(k) balances compared with their white colleagues.

More 401(k) plan sponsors are dissatisfied with their recordkeepers

Among sponsors of 401(k) plans, overall satisfaction with their recordkeepers is down 30% to 40% across all markets, according to 401kExchange.

Educators could use more of their own medicine in retirement approach

Those who make a living educating others to think analytically and learn lessons from history aren’t exactly taking a page from their own book when it comes to retirement strategy, according to a recent ING Web-based survey.

Opportunity knocks in 401(k) plan developments

Change is taking place in the defined contribution plan industry, and plan participants stand to benefit.

If LDI is so great, how come more plans aren't doing it?

This question was posed at a recent conference where I spoke. It brought snickers from the crowd, but poignantly captures the widespread view that liability-driven investing lacks penetration.

Musings and reflections on the industry

The past 18 months have raised more questions than answers. Regardless of the serious issues facing the financial services industry - specifically in the mutual fund business - more than ever it's good to be in the defined contribution market. Here are some observations about what to expect in 2010 and beyond.

Does your retirement planning software make the grade?

The performance of retirement planning software, including programs used by financial advisers, came up short in a new study sponsored by the Society of Actuaries and the Actuarial Foundation.

Dramatic changes coming to the 401(k) and DC market

In the early 1990s, the investment providers dominated by leveraging phenomenal returns to require plan sponsors to use their recordkeeping and administrative services. As providers were forced to offer more than proprietary investments and plan sponsors began demanding better and more sophisticated service and technology, capital expenditures were driven up.

Most DC plan sponsors stuck with their employer matches this year

As of October, more than three-fourths of defined contribution plan sponsors (76.8%) had decided not to change their employer matching contributions in 2009, according to the Profit Sharing/401k Council of America.

401(k) plans: Achieving the Lake Wobegon effect

Channeling the serene Minnesota town from "A Prairie Home Companion" to bring that much-needed feeling of safety and reassurance to the 401(k) market.

Six steps to working with an engaged and effective retirement plan fiduciary

It will come as no surprise that these are trying times for retirement plan fiduciaries. The good news, however, is that recent events have spurred a renewed sense of interest in developing practical strategies for improving the fiduciary process. Becoming an engaged and effective plan fiduciary will make your clients an invaluable asset to the people who depend on them to safeguard their retirement savings. In that regard, here are six ways to improve.

Cross-selling health and retirement products

The October 401kExchange Opportunity Index shows the power in the defined contribution retirement market has clearly shifted to independent third-party advisers.

Higher bond yields stop faltering equities from harming pension funds

The bad news: U.S. equities returned negative 1.9% in October after seven months of positive performance. The good news: An increase in AA bond yields kept the funded status of pension plans sponsored by S&P 1500 companies largely unchanged last month, according to Mercer estimates.

Relief on contribution changes proposed for safe harbor 401(k) plans

The Internal Revenue Service recently issued proposed regulations that may provide relief to plan sponsors that have been forced to look for ways to reduce costs by considering reducing or suspending employer contributions to their 401(k) plans.