Oct. 19, 2009 (Business Wire) -- Second paragraph, second sentence of release should read: Given the growing importance of these plans, it is vital to address gaps in the defined contribution system.

The corrected release reads:

REDEFINED DEFINED CONTRIBUTION PLANS KEY TO STRENGTHENING RETIREMENT SECURITY

Prudential Report: Better Plan Design, Implementation and Management Lead To Better Outcomes

Redefining defined contribution (DC) plans with autopilot retirement planning, streamlined plan operations, and built-in risk protection for sponsors, will dramatically improve outcomes for plan sponsors and participants, according to a new white paper released today by Prudential Financial (NYSE: PRU).

“Over the past 20 years, the role of the 401(k) and other defined contribution programs has evolved from that of a savings supplement to the main vehicle American workers now use to fund their retirements,” said Christine Marcks, president of Prudential Retirement and co-author of the report. “Given the growing importance of these plans, it is vital to address gaps in the defined contribution system. These include gaps that hinder participants from saving enough, protecting their retirement nest eggs, and effectively converting their savings into retirement income, as well as gaps that make it increasingly difficult for sponsors to meet their fiduciary obligations.

“By introducing Redefining Retirement, Prudential offers a blueprint for rethinking and recasting DC plans to ensure that they provide a secure retirement for all participants and meet the expectations and needs of all sponsors,” added Marcks.

Prudential’s white paper, Redefining Defined Contribution Plans to Enhance Retirement Security recommends the following critical enhancements to the current system:

• Autopilot retirement planning, which provides participants with an automated and pre-defined path, from their first day of employment through their retirement, that maximizes their chances of enjoying a secure retirement;
• Built-in risk protection that help mitigate fiduciary risk for plan sponsors, provides protection from market downturns for plan participants, and helps ensure that participants receive a guaranteed stream of income once retired; and
• Streamlined plan operations that automate and reduce the cost of plan administration, making defined contribution plans more affordable and easier to implement for small firms.

To understand how redefined defined contribution (DC) plans benefit plan sponsors and participants, click here to read about Sarah Smith, a hypothetical participant in a redefined DC plan.