The Markets May 14, 2009

Tenn. Employer Changes Match to Encourage Deferrals

The CDE Lightband Power Board approved a new plan for the Clarksville, Tennessee-based company to rework its retirement savings plan match.
Reported by

A news story in TheLeaf-Chronicle newspaper said board members were looking for a new plan that would “provide strong incentives for the employees to increase their own personal savings.”

So, CDE is keeping its existing 401(k) plan, but will change the match to a dollar-for-dollar payment up to 3% of base pay, and a “progress-sharing” contribution of 3% of base pay. If an employee saves at least 3% of his pay, he will receive a 6% match from CDE. The match will be lower if he saves less than 3%, the newspaper said.

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The employees’ current Target Benefit Plan and the Money Purchase Pension Plan will be merged into the modified 401(k) plan, and no further contributions will be made to them, The Leaf-Chronicle reported.

Products May 14, 2009

RSI to Charge $24 for Rollover Services

Rollover provider RolloverSystems Inc. (RSI) is cutting the annual fee it charges for IRA's in response to continued economic pressures on working Americans.
Reported by

Retirement plan participants who roll over a retirement account to RolloverSystems will pay $24 annually for personalized investment support from licensed retirement counselors, access to FundFinder, and account administration.

“This reduction is one more important way in which we are working with key players in the retirement market to help participants stay invested in retirement and maximize their retirement readiness,” said RolloverSystems CEO Spencer Williams, in a news release.

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More information is available at www.RolloverSystems.com/solutions.

 

 

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