Practice

Suspending 401(k) matches for just one year can save most companies millions of dollars a year, but doing so can very negatively impact participants’ savings rates and long-term retirement outlook, and should be avoided, according to Hewitt Associates.

Five states are examining the underlying investment offerings in OppenheimerFunds’ 529 plan after two of the funds lost substantial amounts over the past year: the Oppenheimer Champion Income Fund is down 79%, and the Oppenheimer Core Bond Fund is down 41%.

Exactly 50% of participants in 401(k) plans would like to have the option of rolling their money into a guaranteed income solution, but that does not exist in their plan, MetLife found in a recent survey, its seventh annual Employee Benefits Trends Study. Only 21% of employers said they would consider offering guaranteed income solutions, and only 16% of employers currently offer income annuities in their 401(k) plan.

Barclays Global Investors has hired Stephen Jobe as director of its iShares 529 programs.

While most mutual fund companies struggled in 2008, John Hancock Funds finished the year in solid standing, buoyed by a strong first half and careful strategic planning. President and CEO Keith Hartstein recently spoke with Money Management Executive's John Morgan about the key areas that drove Hancock's record $8.5 billion in sales, some regulations he would like to see changed and his outlook for the rest of 2009 and beyond.

High-yield bond funds lost an average of 26% in 2008, but the range of the performance was astounding, Andrew “Buddy” Donohue, director of the SEC division of investment management noted in a speech Thursday before the Practising Law Institute—ranging a full 85 percentage points between 7% for the best-performing fund to negative 78% for the worst-performing. And ranges proved to be incredibly wide for all asset classes, with 70% of actively managed funds underperforming their benchmarks in 2008, Donohue noted.

Without divulging the figure, AARP said “many” Americans it surveyed are still committed to saving and investing for retirement. Most respondents said that they believe the current market turmoil has slowed their retirement progress, but will not halt it.

Companies can reduce labor costs and retain key talent for continued smooth operations by considering phased retirement, Deloitte recommends. And for workers, it protects their retirement income for a longer period of time.

Consultants to 401(k)s and other defined contribution plans are carefully analyzing, and in some cases replacing, the plans’ money market, stable value, inflation protection and target-date offerings, PIMCO found in a survey.

The Managed Funds Association has drafted the fifth edition of its best practices for hedge funds, this year with special emphasis on restoring confidence, along with a due diligence questionnaire for investors.