Dresher, Pennsylvania–September 1, 2009 – Ascensus reports client adoption of (k)ruiseControl™, Ascensus’ auto enrollment and deferral increase program, has passed the 1,000 plan milestone. Since final regulations of the Pension Protection Act (PPA) were issued in 2007, the number of clients adopting (k)ruiseControl has averaged nearly 40 per month. Ascensus is the nation’s largest independent recordkeeper and administrator for retirement plans in the micro to large market segments and a leading provider of regulatory expertise, plan document services and participant enrollment support.
“We have long recognized the benefits of auto enrollment in addressing the challenges of getting employees started towards saving for retirement,” commented Neil Smith, Senior Vice President, Ascensus. “And the deferral increase option ensures employees are not only participating, but are contributing meaningfully to their account.”
With the relief provided by the qualified default investment alternative (QDIA) options under PPA, the majority of these clients have also taken the opportunity to offer a default investment more in line with the long term nature of a 401(k) account.
“(k)ruiseControl supports an employer’s ability to offer balanced or target maturity funds as the default investment option,” notes Neil Smith. “We have seen a meaningful shift in these plans away from the more traditional stable value and money market alternative as employers recognize the benefits of focusing on longer term growth.”
The most common deferral rate selected by employers for participants who are auto enrolled is 3%. Over 40% of those plans have also added the deferral increase option, increasing deferral rates by 1% annually to a maximum of 7% on average. Adoption of (k)ruiseControl by plan size has been widespread, with the largest concentration (81%) having fewer than 100 employees. Strong penetration in the smaller end of the market can be attributed to the success of Quic(k)Start™ – a flexible, cost effective retirement solution launched in 2007 for plans with 15 or fewer employees.
(k)ruiseControl allows plan sponsors to set plan minimum and maximum deferral rates along with how and when deferral rates should increase each year. Plan-level reporting and supporting materials make managing the program simple and allow plan sponsors to tailor solutions compliant with PPA auto enrollment program requirements (ACA, EACA and QACA arrangements) and provides the ability to offer default investment options that meet QDIA requirements.
Financial advisors looking for more information can contact an Ascensus Retirement Coordinator at 800-345-6363 or email Ascensus at retirementsolutions@ascensus.com.
About Ascensus
With more than 30 years of industry experience, Ascensus provides high-quality solutions for every segment of the retirement marketplace. Ascensus is a division of Crump Group, Inc., the largest and most diversified wholesale insurance distributor in the United States. As the nation’s largest independent recordkeeper and administrator for retirement plans in the micro to large market segments and a leading provider of regulatory expertise, plan document services and participant enrollment support, Ascensus services over 27,000 defined contribution plans. The company’s core capabilities encompass every component of a sophisticated retirement infrastructure, including administration, recordkeeping, ERISA consulting, compliance and sales support, trust and custody services, multilingual participant education programs, training and documentation. These solutions are offered with the open architecture investment capabilities that can be tailored to support the needs of institutional retirement plan providers, third party administrators, financial advisors and their clients. For more information, visit www.ascensus.com.
MEDIA CONTACT:
Neil Smith
Senior Vice President–Strategic Business Support Services
Ascensus
Tel: 215-648-4813