Aggressive plan redesign leads to positive results
Article Abstract:
Detroit Edison Co. realized substantial benefits by revising its 401(k) plan. The electric utility's previous retirement plan included five conservative investment options, administered by only one service provider. Moreover, it involved some in-house administration and did not provide enough reporting to participants. The company decided to change its plan to one administered by a full-service provider and had ten investment options of varying risk characteristics. The change resulted in a 90% participation rate and reduced processing times.
Publication Name: Pension Management
Subject: Human resources and labor relations
ISSN: 1078-9766
Year: 1995
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What should retirees do with the money?
Article Abstract:
Employees who are changing their jobs or retiring can choose from the five distribution options which can help them decide what they will do with their 401(k) assets. They may choose to leave the money in the 401(k) plan or they may purchase a retirement annuity. Other choices include transferring funds directly to a new employer's plan, making a full or partial rollover to an individual retirement account and taking a cash distribution.
Publication Name: Pension Management
Subject: Human resources and labor relations
ISSN: 1078-9766
Year: 1995
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Simple investment search leads to plan overhaul
Article Abstract:
Baltimore Gas and Electric Co. (BGE) contracted bundled pension service provider T. Row Price to handle all its 401(k)-related investments. BGE senior analyst Richard Honaker noted that the shift to a bundled service provider expanded the investment options open to the utility's employees. Moreover, he stated that T. Row Price's portfolio management expertise will significantly reduce the risks involved in investing 401(k) assets.
Publication Name: Pension Management
Subject: Human resources and labor relations
ISSN: 1078-9766
Year: 1995
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