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Northern Trust: DC participants favor higher auto-escalation rates
trueDefined contribution plan participants are more willing to accept aggressive auto-escalation policies than sponsors are willing to provide, according to a report from Northern Trust, published Monday.
Northern Trust: Target-date funds surge in DC plan allocation
trueTarget-date fund allocations in defined contribution plans soared in 2014, climbing to 22% of plan assets from 15.7% in 2013, said a Northern Trust survey of 100 DC plan clients with $265 billion in total assets.
Supreme Court could take on case involving fiduciary burden of proof, damages
trueThe Supreme Court signaled its interest in taking a case questioning whether fiduciaries bear the burden of proof and whether they can be liable for monetary damages.
PSCA: Auto enrollment and default deferral rates up in 2013
trueThe percentage of 401(k) and profit-sharing plans using auto enrollment rose to 50.2% last year, up from 47.2% in 2012, said the latest annual survey by the Plan Sponsor Council of America, released Tuesday.
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trueMany U.S. employers believe their employees lack retirement readiness, a new report from Towers Watson shows. Of the 457 DC plan executives surveyed, 78% said retirement readiness is an important issue for their employees. However, only 12% believe their employees know how much they need to save.
PBS show looks at some sticky choices
trueChoosing a mutual fund in a 401(k) plan is a lot like buying jam at the grocery store, according to a documentary on PBS, “Thinking Money: The Psychology Behind Our Best and Worst Financial Decisions.”
Exelon powers up major 401(k) plan changes
trueExelon Corp. has overhauled the design and investments of its $6.2 billion 401(k) plan, seeking to provide greater diversification and simplicity while reducing costs.
Treasury's Iwry urges more use of behavioral research in DC plans
trueDefined contribution plan executives should pursue a “more robust” use of consumer finance behavior research lessons to help participants raise their retirement savings rates, the Treasury Department’s J. Mark Iwry said Tuesday.
Challenge of income adequacy perplexes execs
truePension plan designers around the world are tackling the challenge of retirement income adequacy with varying degrees of success, said speakers at Pensions & Investments' inaugural Investment Innovation and the Global Future of Retirement conference in New York.
Montana University System seeks record keeper for DC plans
trueMontana University System is seeking a record keeper for its $482 million 401(a) and $164 million 403(b) defined contribution plans.
DC default investment funds pulling back from emerging markets — Schroders
trueDefined contribution default investment options have pulled back from emerging markets, with 48% of DC plans of FTSE 350 companies invested in the asset class compared with 55% a year ago, according to Schroders' FTSE DC report released Thursday.
U.K. to cap fees on auto-enrollment default funds at 0.75%
trueU.K. Pensions Minister Steve Webb said the fees that defined contribution plan providers will be allowed to charge on the default fund in new auto-enrollment plans will be capped at 0.75%.
U.K. mulls 0.75% cap on retirement fund charges
trueThe U.K. Treasury will examine the case for capping the fees that retirement funds are allowed to charge participants in an effort to prevent exploitation of a new auto-enrollment system.
Senate proposal would add auto escalation in Thrift Savings Plan
trueNewly hired federal employees participating in the $313 billion Thrift Savings Plan would have automatic escalation of their contributions under legislation introduced in the Senate.
Needed: An objective-based approach to DC investing
trueDespite years of industry effort at investment education and retirement plan menu design, defined contribution plan participants remain undersubscribed and disengaged.