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Products January 31, 2008
Nationwide Pairs Target-Date Funds with Fund Window
Nationwide Financial Services is now offering a new plan design that includes target-date funds as core investment options along with a mutual fund window.
Reported by Fred Schneyer
A Nationwide news release said the combination of the two should help plans qualify for the Employee Retirement Income Security Act (ERISA) 404(c) safe harbor protection and for the new Pension Protection Act safe harbor for qualified default investment alternatives (QDIAs).
The announcement asserts that the target-date offerings will help participants save well for retirement while the window will allow more sophisticated participants to build their own portfolios through an added layer of flexibility.
“We wanted to find a solution that meets the collective retirement savings needs of America’s workers, while helping plan sponsors reduce their fiduciary liabilities,” says Bill Jackson, president of Nationwide Retirement Plans, in the news release.
For more information, plan sponsors can call toll free 1-888-262-401k.