Lincoln National Corp., Radnor, Pa., is overhauling investment options of its two 401(k) plans and its money purchase plan, confirmed John Arko, associate vice president and head of retirement benefits.
As part of the changes, the funds added 16 options, including offering target-date funds for the first time, and dropped eight.
The changes “will enable our employees to choose funds based upon how actively they wish to be involved in managing their retirement investments.” Mr. Arko wrote in an e-mail.
The new four-tier approach consists of actively managed funds, passively managed funds, target-date funds and a company stock fund, which includes access to a self-directed brokerage account.
Funds being added are for the active tier are the Boston Co. U.S. Small Mid Cap Value Equity and PIMCO Diversified Real Asset Collective Trust.
For the passive tier, the company is adding three State Street Global Advisors funds: U.S. Bond Index Fund, Russell Large Cap Index Fund and Global Equity All Cap/ex-U.S. Index Fund.
For the target-date fund tier, the company is adding 11 target-date funds managed by SSgA. The plans did not previously offer target-date funds.
Lincoln National removed the Vanguard Institutional Index and Vanguard Extended Market Index Institutional funds because of the decision to have one fund family represent the passive tier. The company also dropped six actively managed funds because of duplication of strategies: the Columbia Acorn Z, the Delaware Conservative Allocation, Delaware Growth Allocation, Delaware Moderate Allocation, Delaware International Equity Trust and Delaware Mid Cap Value.
Investment consultant Callan Associates assisted.
As of Dec. 31, 2011, the LNC Employees' 401(k) Savings Plan had $857 million in assets according to the company's most recent 11-K filing. As of that same date, the Lincoln National Life Insurance Co. Agents' 401(k) Savings Plan had $158 million in assets, according to the company's most recent Form 5500 filing.
The asset size of the LNL Money Purchase Plan could not be learned by press time.
