401(k)

The new retirement plan requirement to disclose all fees will be particularly difficult for non-registered investments, such as bank collective funds, separately managed accounts and annuities, the SPARK Institute warns. Thus, it is developing standards to facilitate disclosure.

Employers are clearly more optimistic about the economy, for another 40% that had suspended 401(k) contributions will resume them by mid 2011, doubling the 40% that already have resumed suspended or reduced matches, the Profit Sharing/401(k) Council of America announced Friday.

Retirement benefits, specifically defined benefit programs, are critical when it comes to attracting and retaining employees.

Contributions to 401(k)s increased in the last year, Principal Financial found in a survey of 1,159 employees and 529 retirees in October.

The formula employers use for their matching contributions in their 401(k) plans serves as a strong cue to workers for how much to contribute, analysis by The Principal finds.

The U.S. Department of Labor’s Employee Benefits Security Administration on Monday proposed disclosures on target-date funds offered in 401(k) plans.

Prudential Retirement has added the stable value Prudential Protection Account to its suite of institutional 401(k) retirement solutions. The account guarantees up to $250,000 of principal and accrued interest through the Federal Deposit Insurance Corp.

Legg Mason announced Tuesday it has formed the Legg Mason Retirement Advisory Council, comprised of 14 industry leaders who will meet quarterly to discuss major challenges facing retirement products, service provides and best practices.

The average 401(k) retirement account rose nearly 32%, 31.9%, in 2009, according to a report issued Monday by the Employee Benefit Research Institute and the Investment Company Institute. The average balance among those who consistently contributed to their 401(k) plan reached $109,723 at year-end 2009, up from $61.106 at year-end 2003—for an annual growth rate of 10.5%.

IndexIQ, an innovator in hedge fund replication and index-based alternative investments, has partnered with institutional consulting firm Rocaton Investment Advisors to bring alternative investments to small and mid-sized 401(k) plans. Rocaton has also made a minority investment in IndexIQ.

Across all income groups, retirement income from employer-sponsored retirement plans is more prevalent among retirees today than in 1975, when sweeping new retirement plan regulations were enacted, most notably the Employee Retirement Income Security Act, according to a report from the Investment Company Institute.

Use of the advice service that Bank of America Merrill Lynch Retirement & Benefit Plan Services offers 401(k) plan sponsors for free increased 23% year-to-date since September 2009.

Pre-retirees who continuously held a 401(k) plan with Fidelity Investments for the past 10 years more than doubled their account balances, according to data released by the Boston fund company on Thursday.

Charles Schwab Bank, a trust and custody service provider to 401(k) and other retirement plans, has added the Schwab Institutional Diversified International Trust Fund to its suite of collective trust funds.

Despite the increasing proliferation of target-date funds in employer-sponsored retirement plans, many sponsors aren’t very knowledgeable about the funds, Janus found in a survey.

The SPARK Institute has sent a comment letter to the Securities and Exchange Commission asking it to modify its proposed 12b-1 fee rule.

Americans are underutilizing their 401(k)s, according to a survey of 1,000 participants by the ING Retirement Research Institute. Eighty-seven percent admit they could save an additional 1% of their annual salary, 59% said they could increase it by 3%, and 53% could bump it up by 5%. And for 64%, their 401(k) or other employer-sponsored retirement plan accounts for all, if not the majority, of their retirement savings.

BOSTON—The Department of Labor’s new 401(k) fee disclosure requirements that take effect Jan. 1, 2012 go far beyond disclosing mutual fund expense ratios to cover every nook and cranny of expenses in plans, right down to indirect service providers, speakers said at the FundForum USA 2010 conference here Monday.

For defined contribution plans to work, large U.S. retirement plan sponsors believe they should be mandatory, and include auto enrollment, savings escalation and employer contributions, according to a study released on Monday by Northern Trust.

Fidelity Investments reported a 20% increase over the past three years in the number of participants in its tax-exempt workplace savings plans at higher education, healthcare and other not-for-profit institutions.