Defined Contribution

The potential commoditization of 401(k) plans that some feared would be the result of stricter fee disclosure rules has not happened.

There were 23,056 new 401(k) plans launched in 2013, almost 1,000 fewer than the year before, or a 5 percent decline.

Another lawmaker is proposing new retirement policy that would require employers with 10 or more employees offer a defined-contribution type savings plan.

Two academics from the Wharton School of Business have produced a paper suggesting one large plans effort to streamline its defined contribution plan created potential savings of $20.2 million for participants over a 20-year period, or $9,400 per participant.

This week I had the honor and pleasure to interview Stephen McCaffrey, Chairman of the Board of the Plan Sponsor Council of America.

New data from Towers Watson shows many Americans defined contribution plans suffer risky allocations when it comes to equities.