According to the announcement, the service will provide employers a way to give their retirement plan participants professional and affordable help in managing 401(k) assets.
Kendall Kay, Vice President of Marketing, Strategic Planning and Business Development for ADP Retirement Services, said in the announcement the Managed Account service addresses the issues of participants choosing inappropriate contribution levels and neglecting to monitor their investments. Kay also said the Managed Account service will alleviate participant apprehension about making investment decisions, which can prohibit employees from joining company retirement plans.
An all-index-fund option is a cost-effective solution for plan sponsors of any size, particularly for small-to-mid-sized retirement plans, the announcement said. “An asset allocation strategy using a diversified portfolio created from index funds that keep pace with the stock market can be a cost-effective method for saving for retirement,” said Kay.
ADP offers an all-index-fund managed account option with a portfolio of State Street Global Advisor (SSgA) Index Funds.
More information can be found at www.ADP.com.