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Only 28% of plan participants took a negative action (stopped or decreased contributions) – compared to 67% and 33% during the third quarter of 2010, respectively, according to the Bank of America Merrill Lynch 401(k) Contribution Activities Scorecard for the third quarter. Kevin Crain, Head of Institutional Retirement & Benefit Services, tells PLANADVISER that the data examines two broad areas: in-plan activity and distribution activity. Crain says a positive indicator that the economy is improving is that the ratio between participants taking positive actions versus negative actions continues to get stronger; more people are taking positive steps, while fewer people are taking negative ones. The other area of analysis, distribution activity, shows a more complex picture. “If you look back at loan activity on a year-over-year basis, there is a pretty steady appreciation on new loan issuances. This year, we’ve seen a decrease in the number of loans issued by 4%. It’s the first time we’ve seen that statistic not grow since 2007,” says Crain.
Only 28% of plan participants took a negative action (stopped or decreased contributions) – compared to 67% and 33% during the third quarter of 2010, respectively, according to the Bank of America Merrill Lynch 401(k) Contribution Activities Scorecard for the third quarter.
Kevin Crain, Head of Institutional Retirement & Benefit Services, tells PLANADVISER that the data examines two broad areas: in-plan activity and distribution activity.
Crain says a positive indicator that the economy is improving is that the ratio between participants taking positive actions versus negative actions continues to get stronger; more people are taking positive steps, while fewer people are taking negative ones.
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