Retirement benefits

Male and female participants in MassMutual’s retirement savings plans had about the same among of their retirement assets in asset allocation options in the fourth quarter of 2010—24.3% for women and 24.0% for men. However, nearly all of the women’s allocation was to target-date funds, while the men had half their assets in target-date funds and half in risk-based options.

Fidelity Investments reported Wednesday that the average 401(k) account balance held with it hit a 10-year high of $71,500 at the end of 2010. For participants who continuously contributed to their 401(k) the average balance increased to $183,100 from $59,100 a decade ago.

MassMutual’s retirement services division is launching an interactive seminar series for participants on Feb. 23 called RetireSmart. The first session, on “Understanding What’s Driving the Economy,” will be presented by the firm’s Chief Economist Jerry Webman.

With regulatory reform bringing a wave of changes to defined contribution plans, advisers need to be even more conversant in the ins and outs of legislative requirements and other complexities. Which is why BlackRock is beefing up its commitment to advisors who work with these retirement plans.

Three years ago, just before the credit crisis, many Americans were using home equity lines of credit like cash machines. And at that time, Bank One, now part of JPMorgan Chase, proposed allowing individuals to withdraw small sums from their 401(k) retirement plans through debit cards.

The Hartford has launched a new marketing campaign,” Two for Tomorrow,” advising Americans to take the 2% reduction in Social Security payroll taxes and use the money to boost their retirement savings.

While Americans have remain committed to saving for retirement through their 401(k)s, a significant portion of households owning financial investments, 37%, have become more conservative in their saving, asset allocation and choice of retirement age, according to a survey of 3,000 households at the end of 2010 by the Investment Company Institute.

While regulators have focused on target-date funds since the financial crisis, most investors understand the funds’ basic design and are aware of their risks, a Vanguard survey of 4,700 investors shows.

Putnam Investments has promoted Robert E. Alan to head of North American consultant relations and Keith E. Thomas to head of international consultant relations. The two will work with the consultants who advise institutional investors on investment strategy and the selection of managers.

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.

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.