Products August 16, 2011

Report Encourages Adoption of Retirement Income Solutions

August 16, 2011 (PLANSPONSOR.com) - The Institutional Retirement Income Council (IRIC), a non-profit think tank for the institutional retirement industry, has published a new issue brief detailing why it believes plan sponsor concern about an adverse employee reaction to retirement income products appears to be unfounded.
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IRIC said it believes employees will actually welcome the introduction of retirement income products just as they have with other employer-driven retirement plan initiatives. It points out other employer-driven initiatives to influence retirement outcomes have been perceived very favorably by employees include automatic enrollment, automatic escalation, and automatic investment solutions.  

According to a press release, the issue brief notes these employer initiatives have resulted in positive outcomes – higher participation rates, higher investment levels – and have also been met with participant acceptance.      

“We feel strongly that there is every reason to assume that a similar level of participant acceptance would be extended to retirement income products. In fact, such employer activism might actually be welcomed,” said William Charyk, a partner at Arent Fox LLP, adviser to IRIC and author of the issue brief, in the announcement.   

To obtain a copy of the issue brief, “Retirement Income Products:  Will Employees Welcome or Resent This Form of Employer Activism,” visit http://iricouncil.org/iricArticles.

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