Products November 19, 2010

Consultant Designs ‘New’ 401(k)

Nyhart, an Indianapolis-based independent actuarial and employee benefits consulting firm, announced what it calls standards for the Next Generation 401(k).
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A news release said the new retirement benefit transforms how current, outdated 401(k) benefits are structured and “addresses the many flaws and problems exposed during the recent economic downturn.”

The company said its senior actuaries and retirement benefit advisers spent six months researching and analyzing issues with current 401(k) plans. “The research revealed how the traditional approach to 401(k) fails to provide options that affect retirement: employee contribution rates and the funds being offered,” the news release said.

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Highlights include, according to the announcement:

  • Employees receive education to understand how their contribution impacts their retirement age,
  • Exclusive use of low-cost funds provides maximum retirement balance impact and avoids unnecessary fees and costs,
  • Custom target-date portfolios shift funds into investment channels that minimize risk based on age, not just investment-type, limiting recessionary dips,
  • Integrated single-source administration and education services lower overall costs for employers,
  • “Extensive” fiduciary protection mitigates risk for the employer and their investment committee.

More information is at www.nyhart.com or by calling (317) 845-3500.

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