Employee benefits

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.

Fidelity Investments has added a Bank Deposit Portfolio to its five direct-sold 529 college savings plans: New Hampshire’s UNIQUE College Investing Plan, California’s ScholarShare College Savings Plan, Massachusetts’ U.Fund College Investing Plan, the Delaware College Investment Plan and the Fidelity Arizona College Savings Plan.

High-balance retirement plan participants aren't showing much loyalty to plan providers when rolling assets into an individual retirement account-yet this could signal room for improvement for 401(k) plans and their advisers.

New York Life is introducing an employee participant program that aims to personalize and simplify the retirement planning process.

Putnam will join USAA, Columbia Management, Vanguard and Upromise, who also run 529 plans through Nevada. Columbia also manages an advisor-sold plan.

Government workers are not sitting pretty on top of fat future pensions. More realize that their pensions could be under pressure in the future, and that their government employers are shifting more of their retirement burden onto workers. The smart government and municipal employees—especially those who are slated to only receive a partial pension and are being guided to save in a 457 or other defined contribution plan—are looking to save more.

Retirement plan participants are calming down, according to a Mass Mutual analysis of its plans.

A bill before Congress seeking to increase retirement savings among workers will unnecessarily overburden small employers, according to a new report from Aite Group.

Fund managers and other experts say that target-date funds need to increase the amount of information they provide investors to understand their investment risk. But they don’t want the Securities and Exchange Commission to change the way the funds are named.

Although it supports the Securities Exchange Commission’s goal of bringing more disclosure to target-date funds, the proposal to include asset allocation information in the fund’s name will only confuse investors, BackRock said in a letter to the agency this week.

The fourth annual College Savings Indicator study found that the percentage of college costs parents are projected to meet is only 16%, down from 18% last year, and 24% in 2007, the first year of Fidelity’s survey. However, those who work with an advisor are projected to meet 28% of college costs, down from 34% last year.

The Tuition Plan Consortium said Monday it re-launched Independent 529 Plan as Private College 529 Plan, to foster pre-purchasing of tuition fees as present rates. The consortium said its Private College 529 Plan will offer investors a way to lock in tuition rates at more than 275 private colleges and universities.