|By Fran Lysiak|
|A.M. Best Company, Inc.|
Regardless of who's president, the retirement plan industry will continue provide a more secure retirement for companies' employees while the industry prepares for new federal regulations concerning the disclosure of fees, said a top executive with
From the industry's perspective, regardless of who wins the election in November, "we're primarily focused on what could we be doing as a company to help create retirement security and transform the U.S. retirement system," said
Defined contribution plans such as 401(k) retirement plans are a multitrillion dollar market, and other than someone owning a home, they represent "the largest savings most U.S. workers will have in any form," he said, noting helping workers save for retirement is "nonpartisan." There will be opportunity for plans regardless of which party is in the
Meanwhile, low interest rates and volatile stock markets are spurring 401(k) plan participants to seek advice regarding their plan's investment options, Dalessio said.
Last September, insurance interests welcomed a
"Ultimately, the right intent played out," Dalessio said. As more feedback is taken into account, "they usually end in the right spot."
The re-proposed rule will address concerns about the potential impact on fee practices of brokers and advisers and clarify the continued applicability of long-standing exemptions that allow brokers to receive commissions related to mutual funds, stocks and insurance products (Best's News Service,
The imminent issue plan record-keepers such as Prudential, and advisers and consultants, are focused on, he said, are the new DOL regulations concerning uniform fee disclosure for 401(k) plan sponsors under 408(b)(2) of ERISA. They'll be rolled out this year, and the industry is waiting on final guidance on how this will be "packaged and delivered," Dalessio said.
Meanwhile, calculating longevity, or people's life spans, is resulting in significant financial pressure for global providers of retirement income, according to a report by
Over the past 10 years, most sponsors of traditional defined-benefit pension plans in
A newer concept in the
Prudential takes on the obligations and
|Copyright:||(c) 2012 A.M. Best Company, Inc.|