Products March 23, 2012

The Standard Enhances Retirement Plan Websites

March 23, 2012 (PLANSPONSOR.com) – Standard Retirement Services, Inc. launched two enhanced retirement plan websites.

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The two websites are: PlanNet, a retirement plan management resource for advisers and employers and Personal Savings Center, a financial savings and management tool for participants.

These online tools have been upgraded based on direct user feedback, The Standard said. PlanNet enhancements include improved navigation for access to plan management tools, along with displays of key plan information, such as plan investment balances and participant activity. Similar enhancements have been made to Personal Savings Center, providing access to investment management tools and displays of key account information, such as current balance, investment return, contribution history and loan activity.

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In addition, Standard noted that both websites have increased their use of graphics to help deliver key data and educational information in an easier-to-understand format.

“These upgrades are a direct result of our strong collaboration with plan advisers and their clients,” said Harley Spring, vice president of Plan Services. “As a result of their feedback, our customers’ online experiences are now more intuitive and streamlined, making it easier to quickly access the most important information.”

Administration March 23, 2012

J.P. Morgan Paid $384 Million in Arbitration Loss

March 23, 2012 (PLANSPONSOR.com) - J.P. Morgan Chase paid $384 million to American Century Investment Management after losing an arbitration over accusations of breaches related to the bank’s purchase of American Century. 
 
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According to news reports, the American Arbitration Association said J.P. Morgan’s Asset Management unit purposely violated an agreement tied to the purchase of American Century in 2003, by promoting its own funds at the expense of American Century’s (see “JP Morgan Assuming Ownership of JP Morgan/American Century Retirement Services”).

In the American Arbitration Association’s 72-page decision it stated, “J.P. Morgan breached the contract over and over again. Evidence that compels this finding and conclusion of the one-sided sales and marketing support given to J.P. Morgan Asset Management and its funds is voluminous.”

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According to the arbitration panel, J.P. Morgan agreed to promote the American Century funds when it bought Retirement Plan Services in 2003. However, J.P. Morgan, which held a large minority stake in American Century’s parent company had wanted to buy the entire company. The panel said J.P. Morgan’s personnel thought if American Century funds performed worse, then the company’s value might fall, therefore making it less expensive to purchase.

After the purchase J.P. Morgan pushed in-house funds and encouraged customers to swap out of American Century funds and also awarding bonuses for selling J.P. Morgan products, the panel said.

American Century won the arbitration ruling on August 10, 2011. The award was confirmed by a Missouri state court on December 6, 2011. The award remained confidential until J.P. Morgan agreed to disclosure the information on Wednesday. The payout includes the $373 million arbitration award plus interest.

In an e-mailed statement to The New York Times, J.P. Morgan Spokeswoman Kristen Chambers said, “We disagree strongly with the arbitrators’ decision and award because, among other things, it misinterprets the contract; ignores facts favorable to us, such as the performance of certain American Century funds during the period in dispute; and ignores expert opinions that were favorable to us.” 

 

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