ARLINGTON, Va. The American Society of Pension Professionals & Actuaries is against legislation in Connecticut that would create a state 401(k) plan for small businesses, said Chris Robichaux, spokesman for ASPPA, Arlington.
ASPPA executives contend the state-operated plan would be expensive to administer and would not necessarily provide residents with a better alternative to the existing competitive market in 401(k) plans, Mr. Robichaux said.
The Connecticut legislation would offer businesses with fewer than 100 employees participation in a state-operated 401(k) plan. Thomas Woodruff, director of retirement and benefit services for the state's defined contribution plans, has said that the new plan would offer lower fees than similar corporate plans and encourage small-business employers to establish 401(k) plans.
ASPPA is a national organization of retirement plan professionals that provide consulting and administrative services for qualified retirement plans.
WASHINGTON The average U.S. household invests about 55% of its 401(k) plan assets in common stocks, according to a survey by Watson Wyatt Worldwide. But almost 20% of working households allocated nothing to equities while more than 25% were entirely in stocks.
Several factors influence the' equity investments, including education level and age status, according to Watson Wyatt. Households headed by someone with no high school diploma allocate 10 percentage points less to equities than someone with a high school diploma. Also, the average household headed by a 55-year-old allocates 6.5 percentage points less to equities than one headed by a 25-year-old.
The analysis is based on 2004 data of Watson Wyatt's DC plan clients, the latest year available for the survey.
CHICAGO Van Kampen Retirement Strategy Trust created 10 new target-date funds of funds, primarily investing in eight Van Kampen-managed mutual funds and six open-architecture, multiple-manager funds advised by Russell Investments, confirmed Van Kampen spokesman Matt Burkhard. Nine have target dates in five-year increments for retirement years 2010 to 2050; the 10th is a fund for retirees.
The partnership with Russell will provide broad diversification in the selection of internal and external managers best-suited to various sectors, styles and markets, Mr. Burkhard said. Some of the funds will also invest in international equities, real estate and inflation-indexed securities. Also, to protect against longevity risk, the funds will be actively managed 15 years beyond the retirement date.