Several large companies that rolled out managed accounts as options in their 401(k) plans this past fall have found that demand for these accounts among plan participants is meeting or exceeding expectations.
Companies that have rolled out such options include:
• J.B. Hunt Transport Services Inc., Lowell, Ark., which has achieved an almost 25% participation rate in the managed accounts it began offering in October in its $270 million 401(k) plan;
• Motorola Inc., Schaumburg, Ill., which has had 11% of participants in its $5.5 billion 401(k) plan enroll in managed accounts since October;
• J.C. Penney Co. Inc., Plano, Texas, which also started its accounts in October, has achieved a 10% enrollment in managed accounts by participants in its $3.2 billion 401(k) plan; and
• Genesis Health Care Corp., Kennett Square, Pa., which has had 8.75% of participants in its combined $200 million 401(k) plans enroll in managed accounts since July. The company also increased the total enrollment in its 401(k) plans by 4.5% using the managed accounts promotion to get the interest of new participants.
In addition, McDonald's Corp., Oak Brook, Ill., plans to begin a rollout of managed accounts to participants in its $1.3 billion 401(k) plan early in 2005.