Products October 10, 2006

Benefits Consultant Develops Pension Metrics

October 10, 2006 (PLANSPONSOR.com) - A Washington, DC-based benefits consultant has released a list of pension metrics intended to give the best indicator of a plan's true performance.
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A news release from Judy Diamond Associates said its six “Diamond Metrics” include:

  • total rate of return,
  • rate of return vs. S&P 500,
  • average 401(k) contributions,
  • 401(k) participation rate,
  • commission rate, and
  • investment management rate.

After research, these metrics were determined to best quantify plan performance and best identify underperforming plans that need assistance, according to the company.

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Based on data from Form 5500 annual financial reports, 495,000 plans underperformed the S&P 500 during their most recent available plan year. Furthermore, the study reported a 67% participation rate.

More information is at http://www.judydiamond.com/ .

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