Products May 11, 2009

CMC Interactive Launches Outsourcing Service for 401(k) Providers

CMC Interactive added outsourcing services, including registered investment advisory (RIA) services, for firms servicing qualified retirement plans.
Reported by

In addition to RIA services, the program, CMC Outsourcing, offers customers a broad array of service options for recordkeeping and plan administration.

CMC Outsourcing customers can elect one or more service tiers covering daily recordkeeping; trading and reconciliation; payroll and contribution processing; compliance testing and reporting; plan sponsor and participant Web interaction; call center support; and access to investment advice, according to a news release.

CMC Interactive, a third-party administrator exclusively focused on retirement plan solutions, uses SunGard’s Relius Administration platform for recordkeeping, plan administration, and as the base architecture for its customized Web portal for plan sponsors and participants.

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“Customers of this service will be able to focus on building their consulting practices and enhancing customer relationships instead of concerning themselves with the operational details of recordkeeping and plan administration,” said Michael Calandra, CMC’s co-founder and principal, in the release. “We think it is a very progressive model.”

More information is available at www.cmcinteractive.com.

More information is available at .

 

The Markets May 11, 2009

Paper Company Cuts Match

Among a series of cost-cutting measures, Verso Paper Corp. announced a suspension of the company’s 401(k) match.
Reported by

Verso Paper Corp. posted a 37% decrease in net sales for the first quarter of 2009 compared to the year-ago quarter. In addition to the match suspension, other cost-cutting changes include hiring and salary freezes, according to the Memphis Business Journal.

The company’s sales decrease is directly related to historically low shipments for coated papers, which are typically used for print ads. Ad spending has been reduced greatly because of current economic conditions, according to the Business Journal, citing Robert Mundy, senior vice president and COO of Verso.

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Based in Memphis, Verso Paper makes coated papers, including coated groundwood and coated freesheet, and super-calendered products. Verso’s paper products are used primarily in media and marketing applications, including magazines, catalogs, and commercial printing applications, according to the news report.

Tracking the Trends

In recent months, there have been reports not only about the impact of an employer match on savings rates (see “If You Match It, They Will Save, Study Says’), but also reports of a number of plan sponsors deciding to cut or temporarily suspend their match (see “Tightening Economy Squeezes 401(k) Match Suspensions’).

Meanwhile, this week saw a number of employers making announcements about moves to suspend their 401(k) match (see “Milwaukee Musicians See 401(k) Match Suspension,’ “Insurance Broker Willis Suspends 401(k) Match, Freezes Pension,’ “Hotel Chain Checks Out of 401(k) Match,’ and “Cincinnati Bell Suspends Match’) —and one, Wells Fargo—that froze its defined benefit plans, but kept its 401(k) match intact (see “Wells Fargo Freezes Pension’).

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