Deals & People June 29, 2010

NRP Offers Access to ADP ACCESS

ADP has announced that National Retirement Partners (NRP) has approved the marketing of ADP ACCESS’ 401(k) retirement plan product.
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According to the announcement, this allows NRP’s 150 member firms in more than 39 states to offer retirement plan clients, with $1 million or more in plan assets, “the ability to select from more than 6,000 investment options available through the ADP ACCESS Open Fund Architecture investment platform to meet their individual plan’s investment needs”.

Corby Dall, Senior VP, Provider Relations at NRP, said, “Plan sponsors value solutions that offer flexibility in meeting their planning needs. ADP ACCESS offers sponsors open fund architecture to help meet their fiduciary requirements related to investment choice and fees.”

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ADP Retirement Services’ range of product offerings includes 401(k) Plans, Executive Deferred Compensation Plans, and “Premium Only” (POP) Cafeteria Plans.

For more information on ADP Retirement Services, call 800-432-401k or visit http://www.ADP.com.

Deals & People June 29, 2010

Poll Shows Support for Income Guarantees in 401(k)s

A new survey indicates three-out-of-four (77%) U.S. adults support the concept of modifying the 401(k) retirement plan system to specify that employer contributions be used to provide a guaranteed stream of income.

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Younger adults (defined as 18 – 44 years of age) were even more likely (85%) to say they support such a retirement plan, according to a press release from Nationwide Financial Services, an annuity provider which sponsored the telephone poll conducted by Harris Interactive. In addition, the survey revealed that 72% of U.S. adults said they agree that the 401(k) system should be adapted to include features that offer guaranteed income at the point of retirement.   

The concept is part of a new public policy proposal made by Nationwide Financial Services to government officials and members of Congress. Under Nationwide’s proposal, employers with defined contribution plans would purchase a guaranteed stream of income by using fixed income deferred annuities as the investment option for the employer match, the press release said.   

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Employees would still have control over and access to their own contributions, but the employer match would not be accessible for loans or early withdrawals. Employees could also choose to put their own deferrals in the guaranteed income option.   

According to the survey, only 38% of adults currently have a 401(k) account and of those that don’t, 41% said it’s because their employer doesn’t offer one.   

Nationwide’s proposal is here.

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