Benefits September 29, 2004

Kmart to Boost 401(k) Contributions

September 29, 2004 (PLANSPONSOR.com) - Kmart has instituted more extensive matching contributions to its 401(k) plan in a move to increase employee morale and reward loyalty after the loss of major retirement savings a year ago.
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Kmart will now match dollar-to-dollar on employee contributions up to 3% of total earnings, and 50 cents per dollar on contributions reaching 8%. Currently, Kmart only matches 50 cents to the dollar on contributions up to 6%, according to The Detroit News.

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The move is seen as a measure to raise employee morale and reward loyalty after many lost a significant part of their retirement nest egg when 500 million shares of company stock were cancelled last May. The company’s official position is that benefits increases were a measure taken to induce top-flight employees to stay with the company, as well as entice new workers to join their ranks.

As cost-cutting moves, the company has reduced employee hours and jobs and switched health-care providers. Kmart entered Chapter 11 bankruptcy in 2002.

Products September 28, 2004

Standard Offers Plan Loan Administration

September 28, 2004 (PLANSPONSOR.com) - Standard Insurance Company has launched a new fee-based service allowing plan sponsors to designate The Standard as the Manager of the Approval Process (MAP) for retirement plan loans and distributions.
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Using this service, plan sponsors transfer the administration of the approval process, evaluation of hardship conditions and distribution of funds to The Standard.

The service coincides with the enhancement of an online offering allowing participants to initiate paperless loan and distribution requests using The Standard’s Personal Savings Center Web site.

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“These online services bring information to the fingertips of plan participants and our business partners, allowing them to easily initiate loans and distributions and view transaction details,” said John Nord, assistant vice president of administration of The Standard’s Retirement Plans Division.

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