Compliance September 21, 2007

Biden Announces Retirement Plan Proposal

Democratic presidential hopeful Senator Joe Biden has put forth his plan to help Americans save for retirement.
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The Delaware Senator’s proposal would require employers that do not sponsor retirement plans to allow employees to make direct deductions into Individual Retirement Accounts (IRAs), and to make retirement plans more portable by automatically rolling over 401(k) plan, according to an announcement on Biden’s campaign Web site.

In addition, as President, Biden said he would invest $500 in a Kid’s Account for every American child born after December 31, 2008. Biden also reaffirmed his commitment to protect Social Security, not privatize it.

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“America needs to keep its promise to seniors and those planning for the future by making it easier to save and strengthening important programs like Social Security,” said Biden, in the announcement. “Financial security – independence and a decent standard of living − is rapidly becoming a thing few feel confident they will have when they retire. The American promise that no one who works hard their whole life should end up with nothing is in jeopardy. We need to make it clear to all Americans that they can trust that their lifetime of hard work will be rewarded and protected.”

Products September 21, 2007

CitiStreet Enhancements to Managed Account Services

CitiStreet has announced the rollout of an enhanced managed account service.
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The enhanced service offers, among other features, ongoing account monitoring and management, expanded personal evaluation statements, and an online site exclusively for participants who enroll. Ray Martin, president and CEO of CitiStreet Advisors, LLC, said in the announcement, with the ongoing and periodic monitoring of accounts, if improvements can be gained, then changes are made and participants are kept informed.

Additionally, there is the ability to have the account management consider other retirement investment accounts, as well as the ability to integrate other sources of retirement income such as pensions, the announcement said. The enhanced platform also offers reporting tools for plan sponsors designed to assist them in meeting their fiduciary monitoring responsibilities set forth in the Pension Protection Act.

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Related enhancements for participants include a personal evaluation statement that offers personalized forecasts; evaluation of risk, diversification, contribution rate, and company stock; and recommended investment elections. Those who want to continue to manage their own savings can use the Personal Online Advisor which provides side-by-side comparisons of current investments as compared to advised recommendations with forecasts of estimated results for both scenarios.

Working with Financial Engines, whose computer models drive the program, CitiStreet has already rolled out the expanded product to some of its large institutional clients and will continue to do so for all advice customers in the coming months.

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