LEADING 401(k) PLAN ADMINISTRATORS
The majority of defined-contribution assets among private sector companies are in 401(k) plans today, according to the 2007 Marketplace Update by the Society of Professional Asset-Managers and Record Keepers.
As of the end of 2006, 401(k) plans had $2.6 trillion in assets, an increase of 11 percent from the previous year and a jump of 14 percent over the past 10 years.
As more employers turn to 401(k) plans as their primary retirement savings vehicle for employees, 401(k) plan administrators, who oversee the record keeping of these plans, will see growth in the market.
These companies are also being kept busy with the various regulations coming down in the 401(k) market. With the 2006 Pension Protection Act, 401(k) plan administrators have to make sure they have the processes in place to facilitate automatic enrollment and escalations of employee contributions. The PPA provisions become effective in 2008.
At the same time, Congress and regulators are taking a closer look at 401(k) fees and many experts anticipate legislation to be passed that will force employers to be more transparent about these fees. It will be up to 401(k) plan administrators to break down that information for both employers and employees.
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