Products December 17, 2020

Ameritas Offers GPS Platform, 403(b) Program

The firm says the aim with each is to help participants reach their financial goals.

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Ameritas is introducing two retirement plan choices to help plan participants reach their financial goals: the Ameritas GPS platform and a 403(b) platform.

The enhanced Ameritas GPS offers participants with an open architecture platform to build a tailored retirement plan. Participants can select specific services and investments to address personal and business goals. The platform also offers a custom glide path option and multiple fixed income options, among other enhancements. Matrix Trust Co. will handle the investment management portion of Ameritas GPS.

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“Ameritas GPS makes it easier for employees to understand the importance and value in saving for their financial future, leading to increased plan participation,” says Jim Kais, senior vice president of retirement plans at Ameritas. “Our retirement plans division continues to innovate to meet the needs of our customers. Ameritas GPS is just another way we can craft a plan that benefits participants and supports your benefits program.”

Ameritas is also offering a 403(b) program to meet the needs of nonprofit and tax-exempt organizations, churches, certain governmental employers and school plan sponsors.

“Our legacy at Ameritas has been to serve the small business community, and we’re continuing that effort in the not-for profit 403(b) space,” says Scott Holecheck, second vice president, business development, for retirement plans at Ameritas. “With our strong history of community service, it only makes sense that we help those organizations with their retirement needs.”

The 403(b) program will give nonprofit employers the opportunity to provide key features to fit the retirement planning needs of their employees. These features include an open architecture net asset value (NAV) mutual fund platform, an online participant education and enrollment program, and custom glide path models.

Last March, the retirement plans division also announced the launch of a new glide path strategy, RetireExpress.

Data and Research December 17, 2020

Financial Education, Protecting Savings Themes for Plan Sponsors in 2021

Defined contribution plan sponsors are rethinking investments, but not much interested in annuities, T. Rowe Price finds.

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More plan sponsors are emphasizing financial wellness practices in 2021, but, in a sea of offerings, some specific goals are taking precedence.

Among recent survey findings, a T. Rowe Price defined contribution (DC) consultant study found the No. 1 focus plan sponsors have for the upcoming year is improving employees’ financial knowledge. In a time when many have been rocked by economic hardship, employers are also working with their employees to determine how much to save and how to measure progress, along with building emergency savings, managing general debt and estimating retirement income needs.

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Lorie Latham, a senior DC strategist for global investment services at T. Rowe Price, says she expects more sponsors and participants will focus on retirement income in the new year, especially concerning longevity risk. Latham anticipates a rise in employee education focusing on basic retirement savings practices, along with individual offerings including core bonds and stable value funds.

“Plan sponsors are looking more at stable value. They’re seeing a dual role for stable value to be used as a building block for those constructing a portfolio,” she says. Additionally, Latham says she thinks there will be a desire for a suite of retirement options, rather than select offerings, in the future.

Annuity options—which many thought would gain more interest from plan sponsors after the passage of the Setting Every Community Up for Retirement Enhancement Act (SECURE) passed in late December 2019—received the lowest interest marks in the survey, according to Latham. While many retirement industry experts say they believe annuities are misunderstood, plan sponsors are still wary of defaulting participants into an annuity, even with portability and safe harbor provisions, Latham explains. In an additional study conducted by T. Rowe Price, 61% of participants stated that the SECURE Act did not motivate them to consider lifetime income options.

“That may not be what every individual wants to pursue,” she says. “It’s still complicated for a plan sponsor to think about, ‘Do I have an in-plan annuity, out-of-plan, etc.’ It still brings a fair amount of complexity.”

Instead, Latham expects to see qualified default investment alternative (QDIA) evolve, as more participants consider their longevity in retirement and more plan sponsors become involved in participants’ retirements. According to T. Rowe Price research, there is an 80% chance or more of one person in a couple living past 80 years old.

“It’s now beyond a savings mindset and toward the retirement journey,” Latham notes. “The marker of ‘at retirement’ doesn’t mean that we should stop thinking about the approach to the portfolio and the growth.”

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