DC plan advisors to cut sales of VAs, active funds: Ignites
Because of the fiduciary rule, 7% of plan advisors expect to reduce their use of actively managed equity mutual funds in DC plans, and 8% expect to scale back...
401(k)/IRA
“Boutique DC consultants” now in demand: Cerulli
'This influential and relatively new intermediary category is a bright spot against a difficult DC landscape characterized by negative net flows in the corporate DC market, fee compression, and...
Ghilarducci book calls for new breed of DC plans
Economist Theresa Ghilarducci sees the existing 401(k) system as a half-full glass; she proposes a new glass, mandatory, without leakage, less tilted to high-earners, centrally managed and leading to...
Mercer offers new turnkey fiduciary services to plan sponsors
'Plan sponsors face an increasingly difficult regulatory environment, increased litigation risk and heightened demand on their limited resources to support their 401(k),' said a Mercer executive.
Russell and Envestnet roll out managed account option for DC plans
The Russell QDIA is called Adaptive Retirement Accounts; Envestnet Retirement Solutions Qualified Individualized Life Target Solutions delivers participant investment advice.
Chile’s Pension Crunch
The author, a former presidential candidate and finance minister of Chile, teaches at Columbia University's School of International and Public Affairs.
T. Rowe Price reports on trends in its retirement plans
The average deferral rate among T. Rowe Price plan participants was 7%, far below the recommended level of 15% (which includes the employer match). About one-third of participants are...
Yale, MIT and NYU Sued over Retirement Plan Fees
The universities' retirement plans were the latest to be sued by the law firm of Jerome Schlichter (pictured at his office in St. Louis) for violations of fiduciary duty....
DC plans still slow to embrace lifetime income: Willis Towers Watson
Most employers prefer education and planning tools, and partial or systematic withdrawals during retirement, to annuities or other managed payout options, which consultants called “more effective."
Most plan providers expect DOL rule to help asset retention: LIMRA
'Nearly three quarters of plan providers anticipate their call center staff will need training to be able to distinguish education from advice,' said Matthew Drinkwater, Ph.D., assistant vice president,...
A new topic for Brits to argue about: Decumulation
Two UK small-plan providers, The People's Pension and Now Pensions, don't want NEST, the public DC option for small companies, to offer a retirement income strategy in competition with...
The short goodbye… it’s linked to retirement readiness
With mandatory retirement ages largely a relic of the past, a new whitepaper claims that a robust defined contribution plan, with auto-enrollment and auto-escalation features, can accomplish the same...
Vanguard reports on its services for small 401(k) plans
Vanguard launched Vanguard Retirement Plan Access (VRPA) in 2011 to provide cost-effective 401(k) plans for small business owners with plans with up to about $20 million in assets.
Vanguard publishes ‘How America Saves,’ its 401(k) almanac
Among participants entering Vanguard plans for the first time in 2015, about 80% were invested entirely in a professionally managed allocation. By 2020, the average will be about 68%...
No Retirement Account Left Behind
"Auto-portability" would consolidate a plan participant's old accounts into his or her current account, automatically. Spencer Williams and Tom Johnson of Charlotte-based Retirement Clearinghouse have spent three years trying...
In DC plans, managed accounts and TDFs suit different wealth tiers: Cerulli
The four largest managed account providers in the U.S., with about 95% of the market, include Financial Engines (60%; $113.4 billion), Morningstar (21%; $40.3 billion), Fidelity (8%; $14.5 billion)...
Where you work determines your retirement: EBRI
The percentage of workers who describe themselves as “very confident” about having enough money for a comfortable retirement leveled off at 21% this year, after rising to 22% in...
‘Stretch match’ is the key to higher DC savings: LIMRA
LIMRA Secure Retirement Institute noted that a 100% match of the first 3% of savings tends to promote savings rates of 6%, but a 50% match of the first...
New York City eyes public savings plan for private sector workers
Contributions would be made exclusively by employees and their accounts would be portable from job to job. The city would create a board to oversee and manage the program.
401(k) and IRA balances reflect market volatility: Fidelity
After decreasing in Q3 2015 due to market volatility, average retirement account balances recovered in Q4 2015, but were still below the averages from Q4 2014.
