Products March 23, 2009

ADP Introduces Adviser-Oriented Retirement Plan Offering

ADP Employer Services today introduced ADP ACCESS, a retirement program that combines a financial adviser with ADP's 401(k) plan recordkeeping services.
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ADP ACCESS is designed to ease the administrative burden and provide service and support to the financial adviser community, the company said in a press release.

ADP said the program benefits include:

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  • The employee education program iPlan.iSave.iBenefit that that helps employees maximize their plan benefits and manage their retirement plan goals and objectives
  • A nationwide network of licensed education specialists who are dedicated to helping employees prepare for retirement
  • Seamless integration between payroll and 401(k) plan systems
  • A wide range of investment options covering more than 25 different asset managers, more than 140 different investment options, and diversification across asset classes
  • A level compensation model

“ADP recognizes the valuable role financial advisers play in offering clients and plan participants trusted guidance,” said Chris Augelli, VP Alliance Programs and Business Development. “By leveraging ADP’s unique strengths in data and client management, employee education and investment objectivity, ACCESS helps to ensure that financial advisers are offering their clients the best possible retirement plan solutions.”

Through the ADP ACCESS program, ADP will expand its relationships to more than 32 adviser-focused firms, including broker/dealers, wirehouses, and regional and independent firms, representing over 60,000 advisers, the company said.

The Markets March 22, 2009

Principal Drops Worker Benefits, Cuts Pay

The Principal Financial Group Principal Financial Group Inc. said Friday it was suspending several employee benefits, including tuition reimbursement, anniversary gifts and employee recognition programs, as part of a cost-cutting program.
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Spokeswoman Susan Houser said the Des Moines, Iowa-based financial services company was also cutting pay for workers, management, and its board of directors from 2% to 10% depending on pay level, according to the Associated Press.

The actions are effective immediately and will result in savings throughout 2009, Houser said. Benefits will be restored when conditions improve.

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“Due to continued deteriorating conditions in the economy and markets, the Principal announced internally several cost-cutting measures to reduce expenses and better align revenues and expenses,” Houser said in a statement. “These actions are designed to help offset decreased revenues caused by the markets’ unprecedented impact on our asset-based businesses.”

The company reduced its work force by about 3% in December, laying off 550 workers. That included 300 in Des Moines, where the corporate headquarters are located. Another 60 insurance division workers lost their jobs earlier this month.

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