SunAmerica and ADP Retirement Services have developed The CHAMBERplan for Retirement as part of a five-year contract with the U.S. Chamber of Commerce, according to Jane Kotlarski Sanders, Vice President Business Information and Development for the Chamber of Commerce.
Chamber Members Benefit
Daniel Demko, executive vice president of group retirement markets for SunAmerica, hoped their collaboration with the U.S. Chamber of Commerce will increase these numbers: “There?s a great demand among small businesses for turnkey retirement systems that will help attract and retain their best workers,” he explained. “Through the Chamber, member companies will receive fifty percent off our retail price. The administrative fees will, in many cases, be less than they were with Fidelity.”
98% of American businesses fall into the small or emerging category, reveal statistics compiled by the nonpartisan Employee Benefit Research Institute (EBRI); but just 15% of employees at these firms currently participate in a pension plan.
Different Direction for Fidelity
SunAmerica/ADP were selected from a field of eleven bidders; Fidelity chose not to bid. “Fidelity indicated to us that this was not their strategic direction,” Sanders noted, when the Chamber sent out competitive bids last fall prior to their 1997 contract?s expiration. SunAmerica was chosen based on their “their national marketing reach and distribution channels, their alliance with ADP, and their educational commitment,” according to Sanders.
Chamber members who wish to remain with Fidelity will not be required to switch providers.
Debra McConnell, spokesperson for Fidelity Institutional Retirement Services Company, commented, “We decided to market directly to small plans. We’ve had a lot of success with our all-Internet 401(k) plan targeted to this market.”
The CHAMBERplan for Retirement will offer nine investment options managed by SunAmerica Asset Management, Alliance Capital Management, Davis Selected Advisers, First American, Putnam Investments, and Wellington Management. Investment choices range from conservative to aggressive.
SunAmerica will provide group variable annuity benefits as well as the investment options outlined. ADP Retirement Services handles enrollment, employee education and communications, recordkeeping, regulatory compliance testing, and reporting services.