Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
January 26th, 2015
Plan Sponsor of the Year Finalists
Plan Sponsor of the Year Finalists: 401(k) <$50M
Each year, the editors of PLANSPONSOR magazine—the industry’s leading resource for retirement-benefits related news—recognize plan sponsors that demonstrate leadership in providing a more secure retirement for workers. We are pleased to announce the 2015 finalists for our annual Plan Sponsor of the Year award in the Corporate 401(k) < $50 Million category.Read more >
Benefits & Administration
Timken Transfers Some DB Liability to Prudential
The Timken Company announced it has entered into an agreement to purchase a group annuity from The Prudential Insurance Company of America to pay future pension benefits for approximately 5,000 of its U.S. retirees. Prudential will begin paying benefits to certain retirees and surviving beneficiaries in April, starting with those who are currently receiving benefit payments from Timken’s U.S. retirement plan.Read more >
A group of current and former West Virginia public school employees has filed a lawsuit against a provider to the state’s defined contribution (DC) retirement plan. The lawsuit claims VALIC, a part of AIG, allegedly misled thousands of participants to invest heavily or entirely in its low-interest-rate annuities in the early 1990s, the Charleston Gazette reports. VALIC’s attorneys argue the company guaranteed only a 4.5% annual return, but some employees allege they were led to believe they would receive returns of 8% or higher.Read more >
Giving Millennials a Push to Save
A study from LearnVest, a financial wellness program provider, suggests a look into the future could convince younger employees to save more now. “When we look at those under 25, it may be that we’re looking at a case of false confidence—with few current responsibilities and without a clear notion of what’s on the horizon,” the company notes in the study report.Read more >
Products, Deals & People
Annette Guarisco Fildes has been appointed CEO of the ERISA Industry Committee, succeeding interim CEO Scott Macey.Read more >