Retirement benefits

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

The best way to get investors the lowest 401(k) fees possible is to automatically enroll as many of them as possible into big plans with high contribution rates, according to a study released last week on the economics of 401(k) and defined contribution retirement plans by Deloitte and the Investment Company Institute.

While mutual funds aren't technically required to start using the short-form, summary prospectus until 2011, companies that switch early could see significant savings in printing and mailing costs.

The number of Americans who believe they will live a comfortable retirement has fallen markedly to 41%, down from 59% who believed this in 2002, Gallup found in its annual economy and personal finance survey.

Putnam Investments plans to double its 401(k) wholesalers from five to 10 by year-end, Defined Contribution & Savings Plan Alert reports. In fact, Putnam might even hire more, and it will definitely continue to hire 401(k) wholesalers in 2010, said Edmund Murphy, head of Putnam’s 401(k) business.

MassMutual has just laid off 65 workers, with most of the layoffs occurring in its Boston office, and the cuts spanning all departments—including finance, marketing and sales.

Small business owners view having a solid retirement plan as critical, both personally and for employees, according to an survey of 1,000 people by SunTrust Bank. Nonetheless, nearly 40% do not offer one.

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.

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.

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.

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.

Young adults between the ages of 23 and 28 are more worried about being “financially fit” than “physically fit,” Charles Schwab found in a survey of 1,252 people conducted in January.

Putnam Investments has hired Benjamin H. Lewis as managing director of defined contribution sales and relationship management. A 23-year veteran of the 401(k) industry who began his career at Fidelity in 1986, Lewis most recently was senior vice president for Fidelity Employer Services Co.

A last-minute Bush administration regulation that would permit advice in 401(k) plans was called into question Tuesday by a number of consumer advocates and other experts who testified before the House Committee on Education and the Workforce.

PALM DESERT, Calif. - The United States is determined to show the world it is leading global economic recovery efforts, even if that means creating what some in the industry view as risky new risk regulators.

Stable-value funds, available in such tax-deferred accounts as 401(k)s, have been attracting a lot of attention lately, having returned 4.7% in 2008, compared to the Dow’s 33.8% decline, The Wall Street Journal reports.

Putnam Investments has launched a new defined contribution platform for financial advisers and plan sponsors, using recordkeeping from FASCore, another subsidiary of parent company Great-West Lifeco.

A last-minute Bush administration regulation that would permit advice in 401(k) plans was called into question Tuesday by a number of consumer advocates and other experts who testified before the House Committee on Education and the Workforce.

Mutual funds have been able to thrive for the past 85 years thanks to their ability to adapt to changing markets and help investors stay diversified during good times and bad.

Long live the 401(k) match. Seventy-four percent of plan sponsors who had a 401(k) match in place are still honoring that promise, according to the American Benefits Council. And 15% have either increased the match or are considering doing so.