Data & Research September 17, 2012

New Retirement Plan Proposals Should Include Everyone

Any new retirement income tier adopted by the U.S. government should not just target those without access to a retirement plan, a paper asserts.
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Researchers from the Center for Retirement Research at Boston College (CRR) point out that only 42% of private-sector workers are covered by any type of employer-provided retirement plan. This lack of coverage creates two types of problems. First, more than one-third of households are not covered at all during their whole work life and are entirely dependent on Social Security in retirement. Given the low level of Social Security replacement rates—particularly for those who claim benefits at 62—this reliance is likely to produce inadequate retirement income, the paper says.    

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Second, with a mobile work force, people are moving in and out of employer-based coverage, leading to modest accumulations in 401(k) plans.   

Clearly, more retirement saving is needed, but the researchers contend that designing simpler plans in the hope that they will appeal to small business has not worked in the past and is unlikely to work in the future. The researchers conclude that the president’s automatic IRAs, Senator Harkin’s Promise Funds (See“Retirement Plan Would Be a Win-Win for Working Families, Employers”) and state proposals to use public-plan infrastructure to improve private-sector coverage are all welcome initiatives, but “given the modest replacement rates from Social Security and the low level of 401(k) balances, the more comprehensive the additional tier the better.”  

The CRR Issue Brief can be downloaded here.

 

 

Deals & People September 17, 2012

ING Chief Exec to Oversee Retirement Business

Expanded roles and responsibilities for some members of the executive team were announced by ING U.S. Inc.
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Rodney O. Martin, Jr., ING chief executive officer, will provide oversight responsibility for ING U.S.’s core retirement and insurance businesses, while continuing with his current direct management responsibilities as CEO. Martin, who has more than 35 years of financial services experience, assumes the duties effective immediately.

Alain Karaoglan, executive vice president, has been promoted to chief operating officer and will assume oversight responsibility for ING U.S.’s core investment management business, brand marketing, operations and information technology, in addition to continuing with his responsibilities for strategy and corporate development and investor relations. He has more than 25 years of experience in financial services.

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Ewout Steenbergen, executive vice president and chief financial officer, will now assume oversight responsibility for ING U.S.’s treasury and capital management activities. He will continue to lead the finance function in the areas of actuarial, tax, controllership, financial reporting, insurance investments and procurement. Steenbergen has more than 22 years of financial services experience.

“This structure better leverages the strengths and experience of all of our leaders, and intensifies our focus on helping Americans address their retirement needs through our outstanding asset accumulation, asset protection, and asset distribution products and services,” Martin said.

 

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