Ascensus, Pacific Life Team up on 401(k) Plan for Small Businesses

Ascensus and Pacific Life have teamed up to offer a new 401(k) program to address the needs of small-business plan sponsors.

The Pacific Life Keystone Program provides fee transparency, investment flexibility, and a simplified implementation process, according to a press release.   

The program offers access to Portfolio Optimization Funds offered through Pacific Life’s five targetrisk funds that range from conservative to aggressive. In addition, plan sponsors may choose from a variety of other investment options.

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“We are committed to providing financial professionals with the tools and training they need to help their clients. Together, our goal is to make it easy for employers to implement a workplace retirement plan for employees. The Keystone Program offers a straightforward option for small business owners and is a great complement to our existing lineup of employersponsored plan solutions,” said Christine Tucker, vice president of marketing, Pacific Life, Retirement Solutions Division, in the announcement. 

Fees Cut for The Vanguard 529 College Savings Plan

Vanguard will reduce expense ratios on The Vanguard 529 College Savings Plan by nearly half on some portfolios.

According to a Vanguard news release, those invested in one of the plan’s three age-based options will see their all-in costs reduced from 0.44% ($4.40 per $1,000 invested) to 0.25% ($2.50 per $1,000 invested). Those invested in one of the plan’s 19 individual portfolios will see their all-in costs reduced from between 0.44% and 0.66% ($4.40-$6.60 per $1,000 invested) to between 0.25% and 0.55% (or $2.50-$5.50 per $1,000 invested).  

Vanguard says more than 100,000 clients may benefit from an estimated $8.5 million in annual savings. The new expense ratios become effective October 15, 2010.  

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The Vanguard 529 Plan is sponsored by Nevada and open to any investor, and as assets have increased, Vanguard has worked with the state and program manager Upromise Investments, Inc. to deliver cost savings to plan investors, the announcement said. Vanguard also recently partnered with College Savings Iowa to reduce its all-in plan expenses by one-third.

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