Health insurance represents 7.8% of employee
compensation, according to the Bureau of Labor Statistics—but
that belies its importance to most American workers, and its
significance in the lives of most plan sponsors.Editorial
One need look no further than two key areas of
concern for plan sponsors—health care and retirementÂ
savings—to gain a sense of just how different the future of
workplace benefits could be.
Plan fiduciaries often—and with good reason—are
cautious when it comes to the embrace of new product
It's an election year, after all—and, while most
of the rhetoric revolves around targeting only "the
wealthiest Americans," it's hard to shake a sense that
the impact will be less than precisely targeted.
More than a decade ago, my mom was getting her
finances ready for retirement.UpFront
PLANSPONSOR.com news articles that also appeared in
the Upfront section of the June issue.
We all have them: those front-line experiences that
are -inevitable when one deals with the variety—and
sensitivity—of issues associated with human beings and
critical life events.Survey Says
In addition to the things that "normally"
keep me busy, I was recently out college "shopping"
with my middle daughter.Bells & Whistles
Each month, Bells & Whistles highlights recent
product introductions that plan sponsors may find of
Randy Johnson is still hurling fastballs and
changeups for the Arizona Diamondbacks at the ripe old age of
Few product innovations have been as well-designed
for the needs of retirement plans and retirement plan
participants as asset-allocation funds.Head of the Class
Q1 was rough for hedge funds, but managers see
better times aheadThe Bottom Line
ERISA accounts, more colloquially known as ERISA
budgets, have gained increased prominence in recent months as
part of a renewed focus on 401(k) plan fees and
John W. Livick v. The Gillette Company; The Gillette
Company Retirement PlanQ/A
In May 1999, when Prudential Securities hired
Charles Millard, then head of the New York City Economic
Development Corporation in the Giuliani administration, to
run a new group within the investment banking department, a
Prudential executive described the new hire as a man with
"a talent for getting things done."Barry's Pickings
In April, the House Education and Labor Committee
reported out a 401(k) fee bill.Voice
If you kept putting change into a pocket with a hole
in it, how much money could potentially leak out over a
year's time?Saxon Angle
The Department of Labor (DoL) recently announced
changes to the "plan asset" guidelines affecting the time
frame in which participant contributions must be transmitted
to plans with fewer than 100 participants.Just out of Reish
How should plan sponsors react to the Department of
Labor's new requirements for service provider
Asset-allocated funds have become increasingly
popular in 401(k) and other defined contribution plans
governed by the Employee Retirement Income Security Act
(ERISA), and the new 403(b) regulations have been said by
some to be the ERISA-fication of 403(b) programs, so does it
follow logically that asset-allocated funds will be the next
big thing in 403(b) plan investments?
Risk-based funds and target-date funds appeal to
different employee groups, says Paul D'Aiutolo, an
Institutional Consultant at UBS Institutional Consulting in
Rochester, New York.
Target-date fund glide paths are not just investment
theory, as the recent market turmoil makes clear. Their risks
have very real implications for participants, especially
those in or near retirement.
Are target-date funds too simplified? Yes, according
to providers introducing hybrid investments that blend the
target-date and risk-based fund concepts.
When target-date funds started out, their asset
allocations typically came from the S&P 500 or Russell
2000, the Morgan Stanley EAFE (European, Australia, and Far
East) Index, the Lehman Aggregate Bond Index, and cash, says
Craig Israelsen, an associate professor at Brigham Young
University and Co-Founder of Target Date Analytics, LLC.