Provider-Sponsored 401(k): Part III

This is the third installment of our series on the push for shifting plan sponsorship from employers to service providers and the "institutionalization" of retirement in the US. This week we look back at an employer-led proposal to do that. Image: The logo for ERIC's bold idea in 2007.

Good Policy Will Keep the Economy Humming

'We believe that potential growth will pick up from 1.8% in the 2000’s to 2.8% by the end of this decade. There is no reason that today’s surge in investment spending should be regarded as a short-lived event,' writes our guest columnist.
Industry news and notes

Honorable Mention

Schwab adds 11 new ETFs to its OneSource platform, LIMRA says Asians spend 11 fewer years saving for retirement than Americans, Hueler introduces stable value fund evaluation tool, Prudential finds many Americans expect to work in retirement, MassMutual to offer T. Rowe Price target date funds, Empower finds Millenials reaping the benefits of retirement plan 'nudges.'
Social Security

Global Aging and Fiscal Solvency

The Harvard economics professor thinks the US should correct Social Security's impending shortfall by gradually raising the age for "full" benefits to 70 from 67, and not by raising the payroll tax to 8% per employee and employer from the current 6.2%.
Anecdotal Evidence

Border Turmoil and Social Security Solvency

'The inflows of migrant workers compensate the falling birth rate in our country, which is the gravest threat to the sustainability of our pension system,” an Italian official said this week. But he could have been talking about the US.


July 5, 2018

Fuzzy Words in a Retirement Bill

The Retirement Enhancement and Savings Act of 2018 has bipartisan support and a greater-than-average chance of passing. Many believe that it could lead to provider-sponsored 401(k) plans. But bill doesn't exactly say that. What...
June 28, 2018

Everybody into the Pool?

If pending legislation passes, retirement service providers could begin to sponsor 401(k) plans. Asset managers are especially keen on these ‘pooled employer plans’ or ‘open MEPS.’
June 21, 2018

Adding a ‘Retirement Tier’ to 401(k)s

Drew Carrington, who markets Franklin Templeton funds through jumbo 401(k) plans, believes that plans should include a “retirement tier” reserved for participants who are nearing retirement. His payout funds would fit nicely into that...