In the News:
- “Benefits of 401(k) Plans May Be Lost on New ‘Millennial’ Generation; CIGNA Survey Finds 401(k)s Fail to Engage America’s Youngest Workers”
- “Who Offers the Best 529 College Savings Plans?“
The Wall Street Journal (subscription required) today has a couple of noteworthy articles:
- “Bogus Offerings By Health Insurers Are on the Rise“: “In a report to be sent to Congress Wednesday, the GAO found that 144 companies had improperly sold insurance to 15,000 employers in 2000 to 2002, and that the number of sham entities uncovered had doubled to 60 in a two-year period. Individual policyholders, as well as companies, were also victims.”
- “401(k)s May Use This Key: Simple! Younger Workers Display Reluctance to Participate; Plans’ Complexity Is Cited.“: “. . .[C}ompanies are adopting simplified 401(k) enrollment forms that allow employees to get into the plan with a check of the box.” According to the article, one company sends out postcards with a picture of a camera on it, exhorting employees to “Picture Your Future” which allows employees, with a single check mark, to participate in the savings plan at 2% of pay. Employees, of course, can check other boxes if they want a different contribution rate. The campaign has reportedly yielded 100 new employees enrolled in the plan as well as increased deferrals by an average of 9.3%. (The company is–you guessed it!–a photo film company.)