LHP: How does the default option work if, say, the plan participant
is invested 70 percent in equities and 30 percent in fixed income, and wants to do a rollover to another employer-sponsored plan or an IRA?
The Investment Company Institute (ICI) unveils this finding in an August 2014 report, "Defined Contribution Plan Participants
' Activities, First Quarter 2014." The 2014 report updates results from ICI's survey of a cross-section of record-keeping firms representing a range of DC plans and covering about 24 million employer-based DC retirement plan participant
accounts as of March 2014.
* The provider designs the technology-logic, screens and communications-for plan participant
usage on the 401(k) platform;
(Companies currently pay the PBGC $35 per plan participant
, which will rise to $49 per participation by 2014.) On the other hand, the PBGC's exposure to pension risk is lessened.
The cost of each share varies with the plan participant
's age and current interest rates and is based on a retirement age of 65.
"Clients are more interested in identifying opportunities to change plan participant
behavior than in shifting costs," executive vice president for PBM marketing Jack Bruner says.
The Act requires that each plan participant
shall enter into a levelized payment plan with the gas and electric service provider, and the utility provider will review and adjust the participant's usage and payments regularly, but not more often than quarterly.
The plan participant
must have had the opportunity to choose his or her investments, but did not do so.
The investment advisor or the plan participant
must determine the level of equity, fixed income, and cash or cash equivalents among the investments held at any given time.
A haircut provision is defined as a percentage loss the plan participant
would suffer due to an early distribution from the plan.
During that hearing, the Senate HELP Committee voted for an increase in flat-rate premiums from $19 to $46.75 per plan participant
beginning in 2006, which is indexed for wage increases.
"A lot of the time that is added to the rollover process results in the plan participant
or the investor not knowing how to fill out the documents correctly," says Bowser.