A NYLIM news release said its new service will feature investment advice through Morningstar Associates, automatic savings increases over time, ongoing participant contact, and an annual participant report card on progress toward their goals. Morningstar will develop portfolios for participants and set guidelines to rebalance and reallocate those portfolios to help ensure that investment strategies stay on track, according to the announcement.
Don Salama, a NYLIM managing director and head of sales, marketing and product development for NYLIM Retirement Plan Services told PLANSPONSOR.com that participant fees for the managed accounts offering would be based on the amount of an employee’s assets:
- 85 bp for the first $10,000
- 65 bp for the next $40,000
- 45 bp for the next $50,000
- 35 bp for the remainder of assets.
NYLIM executives said the approach of their new program is to focus participants not on the amount of assets they’re generating now, but on how much they will need to live comfortably in retirement and how far they are from achieving that goal by including both in-plan and external assets. Salama said NYLIM will generate a report for every employee at a client company with that information – regardless of whether they are a K plan participant.
Plan sponsors will also get a periodic report with an overall view of that picture – how far employees are from saving enough for retirement. NYLIM will serve as a fiduciary for the managed account offering, the announcement said.
The program will be available starting in the first quarter of 2005 to NYLIM Retirement Plan Services new and existing mid- and large-sized plan sponsor clients and their participants.
More information about NYLIM is at www.nylim.com .