Administration January 11, 2017

403(b)s No Strangers to In-Plan Income Products

According to the 2016 PLANSPONSOR Defined Contribution (DC) survey, 27.2% of 403(b) plans offer in-plan income products that guarantee monthly income, compared to 7.3% of DC plans overall.
Reported by

While 401(k) plan sponsors are hesitant about adding in-plan retirement income solutions, 403(b) plans have been using them all along. 

According to the 2016 PLANSPONSOR Defined Contribution (DC) survey, 27.2% of 403(b) plans offer in-plan income products that guarantee monthly income, compared to 7.3% of DC plans overall. More than 12% offer in-plan income products that guarantee a base benefit, compared to 3.6% of DC plans overall. Eleven percent offer in-plan income products NOT offering guarantees, and 5.2% offer an out-of-plan annuity purchase/ bidding service, versus 5.7% and 2.6% of DC plans, respectively.

Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.

Some of the numbers are even greater for 403(b) plans governed by the Employee Retirement Income Security Act (ERISA). Among those plans, 32.6% offer in-plan income products that guarantee monthly income, and 12.7% offer in-plan income products that guarantee a base benefit.

Among plans not governed by ERISA (non-ERISA 403(b)s), 29.9% offer in-plan income products that guarantee monthly income, and 18.6% offer in-plan income products that guarantee a base benefit. Nearly 23% offer in-plan income NOT offering guarantees, and 6.2% offer an out-of-plan annuity purchase/ bidding service.

The survey found 403(b) plans are also more likely than other DC plans to offer systematic distribution options in their plans (70.7% of 403(b)s vs. 49.8% of all DC plans). Nearly 72% of ERISA 403(b)s do so, and 70.3% of non-ERISA 403(b)s do so.

The 2016 PLANSPONSOR DC Survey received responses from 481 403(b) plans, including 112 non-ERISA plans.

Products January 11, 2017

Ascensus to Roll Out New Retirement Plan Website

The redesigned retirement plan website is part of an overall effort to boost technological offerings in 2017.
Reported by

Ascensus, a retirement plan and college savings services provider, has announced a technological overhaul which will include a redesign of its retirement plan and participant websites expected to be unveiled at the end of the first quarter. The initiative will begin with the launch of a new www.ascensus.com.   

The new website will offer an enhanced user-experience allowing visitors to self-identify before seeing relevant products, services and savings plan information. The site will also feature a newsroom section where users can access the latest on company news, thought leadership, and savings industry regulatory updates. Current clients will have access to a login portal.

Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.

“We wanted to provide concise, easy-to-understand information to help our website visitors make sound decisions,” says Roberta Hess, vice president of marketing and communications. “Our approach is simple by design, helping Americans confidently save for their futures.”

CEO Bob Guillocheau adds, “As we head into 2017 and continue to grow our organization, it’s imperative that we maintain our focus on the value that we provide to our clients in helping them save for retirement, college, and health care. We listened hard to what our clients were asking of us with our upcoming digital initiatives—the new solutions are truly being built with our clients in mind.”

The new corporate website is designed to reflect the company’s retirement, college, and health savings account services, while helping partners and clients connect with Ascensus’ team of experts.

These updates follow the firm’s recent launch of its Web-based SEP and Simple IRA program. It also recently released a health-savings account (HSA) investment platform for banks and credit unions.  

“The new Ascensus.com is just the first in a series of enhancements that we’re excited to provide to both current and prospective clients,” says Guillocheau. “All of us at Ascensus are looking forward to what we plan to accomplish in 2017 as our company continues to grow.”

«