Products May 6, 2013

Social Security Leverages Smartphone Technology

May 6, 2013 (PLANSPONSOR.com) – The Social Security Administration (SSA) is now offering a new mobile-optimized website specifically aimed at smartphone users.
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According to Carolyn W. Colvin, acting commissioner the SSA, those visiting the agency’s website, www.socialsecurity.gov, via smartphone will be redirected to the agency’s new mobile-friendly site. Once there, visitors can access a mobile version of Social Security’s frequently asked questions, an interactive Social Security number (SSN) decision tree to help people identify documents needed for a new or replacement SSN card, and publications that they can listen to—available in both English and Spanish—right on their phones.

“We are committed to meeting the changing needs of the American people, and the launch of our new mobile site helps reinforce our online presence and adaptability to advances in technology,” said Colvin. “I encourage all smartphone users looking for Social Security information to take advantage of our new mobile site.”

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Visitors to the new mobile site can also learn how to create a personal “My Social Security” account to get an online Social Security Statement, learn more about Social Security’s online services and connect with Social Security on Facebook, Twitter, YouTube and Pinterest. For people unable to complete their Social Security business online or over the telephone, the SSA has also unveiled a field office locator. The locator has the capability to provide turn-by-turn directions to the nearest Social Security office based on information entered by the user.

“With significant budget cuts of nearly a billion dollars each year over the last few years, we must continue to leverage technology and find more innovative ways to meet the evolving needs of the American public without compromising service,” said Colvin.

Each year, more than 35 million Social Security webpage views come via smartphones.

For more information, visit http://www.socialsecurity.gov.

Products May 6, 2013

Morningstar Enhances Managed Accounts Platform

May 6, 2013 (PLANSPONSOR.com) - Morningstar Inc. has introduced the next generation of Morningstar Retirement Manager, its advice and managed account service for defined contribution (DC) participants.
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Among the most significant enhancements to Retirement Manager is the addition of Income Secure, which provides individualized, tax-efficient retirement income drawdown advice. A Morningstar research paper, “Alpha, Beta, and Now…Gamma,” shows that a participant’s withdrawal strategy—how much to take from a retirement portfolio each year and from which account (IRA, 401(k), taxable, etc.)—can have the most significant effect on the amount of income an investor has in retirement.

Retirement Manager can evaluate all of a participant’s holdings across both taxable and tax-deferred accounts and provide a specific, individualized drawdown plan that outlines how much he should pull from each account each year, considering taxes and minimum required distributions. “From an individual standpoint, [participants] just want to know how much they can spend in retirement,” James Smith, vice president of client solutions at Morningstar Investment Management, told PLANSPONSOR.

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Retirees must make many complex decisions every year based on changes that will occur upon leaving the work force: Savings mode will end, and participants will incur different tax rates, for example. “This helps simplify the process for the average person,” said David Blanchett, head of retirement research at Morningstar Investment Management. “Our recommendations will be very different based upon different states.”

Morningstar has also enhanced its investment recommendations to reflect its latest liability-driven investment (LDI) methodology. LDI recognizes that investors in or nearing retirement face different risks than those in the accumulation phase. For example, two investors may have the same stock-bond split in their portfolios, but the investor closer to retirement has greater need for inflation, currency and interest rate protection than someone further from retirement.

Participants who use Retirement Manager will now get investment recommendations that are not only suited to their risk capacity, but also sensitive to the unique risks associated with their life stage.

Another significant enhancement is more holistic retirement planning advice with recommendations about what age to retire. In addition, if a participant is not saving enough and has reached the annual 401(k) savings limit, Retirement Manager will provide participants with asset-allocation and savings recommendations for an outside taxable account.

Additional enhancements to Retirement Manager include:

  •  Portfolio assignment based on patented human capital methodology, which accounts for an investor’s total economic situation—both current wealth and future earnings and savings potential;
  •  Enhancements to fund selection methodology, inflation rate forecasting and treatment of stable value funds; and,
  •  Personalized recommendations for guaranteed income products, both in and out of plan.

The enhancements have already been rolled out to some institutional clients but will fully launch sometime between now and July, Smith said. 

In addition to providing defined contribution managed accounts and advice, Morningstar offers plan sponsor investment lineup selection, 3(21) and 3(38) fiduciary services and custom target-date fund (TDF) design through its registered investment advisers.

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