Comprehensive Plan Improves Retirement Security for DefinedContribution Participants
Oct. 27, 2009 (Business Wire) -- Prudential Financial (NYSE: PRU) has launched “Redefining Retirement,” a new model for the design, management and administration of workplace-provided retirement plans, raising the bar for the industry by delivering a comprehensive and effective solution to the retirement-savings crisis now plaguing American workers.
“In the past year, Americans lost $1 trillion of their retirement savings, forcing plan sponsors, plan participants, and regulators to take a step back and question the ongoing viability of defined contribution programs,” said Christine Marcks, president of Prudential Retirement, a business of Prudential Financial Inc. “With ‘Redefining Retirement,’ we’re addressing those concerns with a holistic and distinctive approach that integrates industry ‘best practices’ for the benefit of participants and sponsors alike.”
For plan participants, the new and innovative model creates a retirement “glide path” that carries individuals not only to retirement, but through retirement. Auto-pilot plan features—such as automatic enrollment, automatic contribution escalation, and automatic asset allocation—are combined with Prudential IncomeFlex® TargetSM (IFX Target), a guaranteed minimum withdrawal benefit product, to help ensure adequate savings and a guaranteed stream of income in retirement.
For plan sponsors, “Redefining Retirement” offers streamlined processing, leading to greater cost efficiencies. And, perhaps most importantly, the new model provides additional levels of fiduciary risk support and enhanced levels of indemnification.
“Today, more than ever before, running a successful retirement program has become increasingly difficult for plan sponsors,” said Marcks. “Our’ Redefining Retirement’ model stands apart by mitigating risk, by helping sponsors meet their fiduciary responsibilities, and by offering protective pledges, or commitments, that indemnify sponsors for certain losses.”
Prudential’s new approach to retirement-plan design and management includes four key elements:
- Smart plan design—which optimizes plan participation through auto-enrollment and better matches.
