Employee benefits

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.

One of the benefits of the recession is that the constant coverage of the economy has brought retirement savings and retirement benefits into better focus for many Americans, The Hartford Financial Services Group found in a survey of 1,000 adults, conducted by Zeldis Research.

Average balances in 529 college savings plans fall far short of projected higher education costs in most situations, according to Morningstar’s latest research paper and industry survey, released on Monday.

According to Morningstar, Alaska, Maryland, Nevada, Ohio and Virginia are all considered best in class across five performance areas.

For anyone born today, the cost of four years at a private college will be about $440,000 by the time they arrive at those hallowed halls.

The Hartford Financial Services Group has launched a new educational program to encourage participation in 401(k)s and other defined contribution plans.

The Department of Labor’s Employee Benefits Security Administration will require 401(k) plans starting Jan. 1, 2012 to clearly spell out all fees and expenses each quarter so that investors can more readily compare the costs of their holdings.

The economy is outright preventing or dissuading many American workers from saving for retirement, according to an analysis of U.S. Census Bureau data by the Employee Benefit Research Institute.

Auto enrollment, escalation and target-date features in 401(k) plans are effective in boosting savings substantially, especially for lower-income workers, according to a report from the Employee Benefit Research Institute (EBRI) and the Defined Contribution Institutional Investment Association.

Hartford Financial Services Group Inc. has been selected to launch and manage a new advisor-sold 529 college savings program in Connecticut, the state’s treasurer announced Wednesday.

Mutual of Omaha is holding 401(k) sales seminars, or boot camps, for advisers to 401(k) plans over the next year. The first six cities where the seminars will be held are Lansing, Mich., Pittsburgh, Orlando, Minneapolis, Kansas City and Dallas. Following the seminars, participants will receive a year’s worth of educational e-newsletters, and access to webinars and tools.

CHET Advisor is the first advisor-sold 529 plan sponsored by the state. TIAA-CREF will continue to run the Connecticut Higher Education Trust, a direct-sold 529 college savings plan first launched in 1998.

Great-West Retirement Services has appointed Tom Masteller regional sales director for the Pittsburgh marketplace, responsible for selling 401(k) plan administration services through brokers, financial advisers, consultants, wirehouses and third-party administrators (TPAs). Great-West is the fourth-largest retirement plan recordkeeper in the U.S.

Two weeks after announcing a new 529 college savings partnership with the state of Nevada, Putnam Investments said it plans to expand sales of the program nationally.

Robert Reynolds, the company’s chief executive officer, said in an interview Thursday that Putnam has offered 529 plans for 10 years, but this plans will take a broader national approach.

The Profit Sharing/401(k) Council of America has honored McDonald’s for having the best retirement plan, in its inaugural Plan Sponsor of the Year Award.

Vanguard lowered fees on its Nevada 529 as Fidelity adds bank deposit option to its 529 plans.