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Blogs
Retirement Plan Access - It's Two Thirds, not Half
Critics of the employer retirement system continuously state that only 50 percent of workers at companies have access to a retirement plan where they work, and this has not changed for years. They are wrong. The US Bureau of Labor Statistics in their March 2009 “Program Perspectives on Retirement Benefits: Issue 3” http://www.bls.gov/opub/... Read More >>
Plan sponsors and the economic downturn
PSCA Board members shared what was going on at their companies at the PSCA’s May 13-15, 2009 Board of Directors meeting. All members are dealing with the impact of the economic downturn on their business and their plans. Some members have suspended their matching contributions. All members are examining strategies to lower plan costs while... Read More >>
Peak to Valley Is Not How to Measure 401(k) Success
401(k) account balances are up for workers who have participated for less than four years in their plans (EBRI). Because their account balances are relatively low, their contributions and their company’s contributions offset the recent declines in equity and bond values and magnify the impact of dollar cost averaging. For others, their accounts... Read More >>
401(k) Stability Is Not An Accident
I hope others are as delighted as I am at the stability of the 401(k) system in these volatile economic times. Data from those who keep the records shows participation, savings rates, hardship withdrawals and loans have been only marginally affected. However, this stability does not just happen. Over 80,000 dedicated individuals across the country... Read More >>
Inertia and Choice
The use of employer decided opt-out solutions like automatic enrollment, automatic escalation and target date funds represents an important advance for employer sponsored defined contribution plans. They have brought thousands of new participants into the 401(k) system and enhanced the savings of many more. Many credit “inertia” for the success of... Read More >>
It Keeps On Ticking
If there ever was an example of “takes a licking, keeps on ticking” it would be the 401(k) system. Not only have investment returns recently been poor, but the media has piled on with story after story about how 401(k) itself is the problem. However, the real story is that 401(k) participants continue to save and invest in their plans even in what... Read More >>