A DST news release said TRAC AutoVantage will make actively managed lifecycle/target maturity funds available as default options for plan participants while periodically rebalanced asset allocation models may be used as well. The new auto-deferral increase capability will allow automatic annual percentage hikes in participant pre-tax contributions until the participant reaches a plan-specified salary deferral rate, DST said.
DST’s TRAC retirement recordkeeping platform has supported automatic enrollment since 2001, according to the company. The full TRAC AutoVantage suite is scheduled for general availability by the end of 2006.
“Automatic enrollment by itself is not enough,” said Jim Walsh, vice president DST Systems, in the news release. “It is critical that the auto-default investment provided by the plan sponsor is appropriate for the participant, and that the automated solution actively builds savings.”
More information on the company is at http://www.dstsystems.com/ .