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Fidelity COO pushes model for hiking 401(k) participationPosted by Retirement on: 2005-09-22 08:30:43 in category:
401(k) [ Print | Permalink / 0 Comment(s) ] Fidelity Investments, the world's largest mutual fund company, said Wednesday that in January it will take steps to increase its own employees' participation in its defined contribution plans. The initiative, discussed by Fidelity chief operating officer Robert Reynolds following a speech before the Greater Boston Chamber of Commerce, is part of a broader campaign by the company to raise involvement in work place retirement plans beyond the Boston company's doors. Reynolds said the firm is moving toward automatically raising employee contributions to their defined contribution plans and rebalancing those plans assets. That is in addition to automatically enrolling employees in those plans, which Fidelity already does. In those instances, Fidelity employees would have to opt out of the program. Currently, Fidelity employees -- like workers at many companies -- have to join a retirement program and actively choose to hike contributions or rebalance their investments. In his speech, Reynolds said employers should embrace similar methods, such as requiring workers to participate in retirement plans, unless they decide against it, as a means of boosting retirement saving. He also said employers should look to automatic asset reallocation and contribution hikes, as Fidelity has. Reynolds called on Congress to approve legislation that would prevent companies that sponsor retirement plans from being sued for making participation, allocation and contribution increases automatic. Fidelity wants to increase worker participation in retirement plans at a time when studies show Americans' retirement savings are projected to fall short of their needs. Reynolds said 20 percent of his company's new employees do not participate in its 401(k) offering. That number shrinks to 7 percent after one year. The Bush administration has pushed for an overhaul of Social Security that includes allowing individual private accounts financed by the government. Reynolds, asked how the controversial plan fit in Fidelity's efforts to increase retirement saving, said he wasn't arguing for private accounts. Homepage Please support are sponsors. To design you custom retirement plan. http://www.retirement-plan.us For planing a IRA rollovers. http://www.ira-rollover.us Professional asset allocation and the wonders it can do. http://www.asset-allocation.us Professional money management: National ranked performance. http://www.roth-ira.us Managers selected to fit your needs. http://www.money-managers.us |
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