Products October 24, 2011

PenChecks Introduces Distributions via Debit Card

PenChecks has introduced a debit card option for retirement plan distributions.
Reported by

Under this new service, retirement plan participants may elect to have their distributions made via debit card instead of a traditional check. The company said it believes the debit card option to be the future of benefit processing. Debit cards are safer, more secure, more portable, more convenient, and may provide important benefits to millions of people with limited or no banking access, the company said.   

Millions of individuals: 1) cannot conduct transactions requiring credit cards (including most Internet-based transactions), 2) are more likely to lose their paychecks and, 3) because they’re forced to carry cash, are more likely to become victims of crime and pay high fees for check-cashing services, the company noted. A debit card solution offers a portable and more secure way for these consumers to make every-day transactions.

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Additionally, the recipients of retirement distributions via PenChecks’ debit card program may elect to convert the proceeds to cash, to a paper check, or deposit funds to a rollover IRA. Through a toll-free customer service feature, card holders can check balances, transfer money to a checking account, or deactivate and replace a lost or stolen card. Additionally, these debit cards are reloadable and may also be setup to receive payroll deposits.
Products October 24, 2011

SSgA Announces New Benchmarks for Five SPDR ETFs

State Street Global Advisors (SSgA) announced changes to the indices and names of five financial industry SPDR exchange-traded funds (ETFs). 
Reported by

Effective October 24, 2011, the five SPDR ETFs will seek to track S&P Select Industry Indices that provide access to the same market segments as funds’ current index and offer broader diversification and reduced concentration risk.
 The changes will affect the following ETFs:
 

Current ETF Name 

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Current Index Name 

New ETF Name 

New Index Name 

SPDR KBW Bank ETF (KBE)

KBW Bank Index

 

SPDR S&P Bank ETF (KBE)

 

S&P Banks Select Industry Index

 

SPDR KBW Capital Markets ETF (KCE)

 

KBW Capital Markets Index

 

SPDR S&P Capital Markets ETF (KCE)

 

S&P Capital Markets Select Industry Index

 

SPDR KBW Insurance ETF (KIE)

 

KBW Insurance Index

 

SPDR S&P Insurance ETF (KIE)

 

S&P Insurance Select Industry Index

 

SPDR KBW Mortgage Finance ETF (KME)

 

KBW Mortgage Finance Index

 

SPDR S&P Mortgage Finance ETF (KME)

 

S&P Mortgage Finance Select Industry Index

 

SPDR KBW Regional Banking ETF (KRE)

 

KBW Regional Banking Index

 

SPDR S&P Regional Banking ETF (KRE)

 

S&P Regional Banks Select Industry Index

 

The funds’ ticker symbols and expense ratios will not change.

“As a leading manager of industry and sector ETFs, we are constantly reviewing the SPDR ETF offering to improve access to a wide range of asset classes,” said James Ross, Senior Managing Director and Global Head of SPDR Exchange-Traded Funds. “In addition to unifying our industry SPDR ETFs around a single index provider, the new S&P indices offer investors greater diversification and a rules-based methodology that enhances transparency.”

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