Actuary Firm Defines the Next Generation 401(k)

INDIANAPOLIS, Nov. 18, 2010 /PRNewswire/ -- Nyhart, one of the nation's largest independent actuarial and employee benefits consulting firms, announced today the standards for the Next Generation 401(k). This new retirement benefit transforms how current, outdated 401(k) benefits are structured and addresses the many flaws and problems exposed during the recent economic downturn.

Nyhart's senior actuaries and retirement benefit advisors spent the past six months researching and analyzing issues with current 401(k) plans. The research revealed how the traditional approach to 401(k) fails to provide options that are affect retirement: employee contribution rates and the funds being offered.

"The 401(k) as most people know it was designed to benefit Wall Street, not Main Street," said Nyhart CEO and senior actuary Tom Totten. "We saw employees around the country taking huge hits because most retirement programs utilize expensive investment options, fail to educate employees how their contributions impact retirement and offer no way for employees to understand what they can do right now to retire when they expect. Our experts recognized these flaws and designed a 401(k) benefit for the 21st Century."

Highlights of the Next Generation 401(k) include:

• Employees receive education to understand how their contribution impacts their retirement age,
• Exclusive use of low-cost funds provide maximum retirement balance impact and avoid unnecessary fees and costs,
• Custom target date portfolios shift funds into investment channels that minimize risk based on age, not just investment-type, limiting recessionary dips,
• Integrated single-source administration and education services lower overall costs for employers,
• Extensive fiduciary protection mitigates risk for the employer and their investment committee.

Companies interested in receiving a financial comparison report or an employee projected retirement age analysis for their traditional 401(k) versus a Next Generation 401(k) can contact Nyhart at www.nyhart.com or by calling (317) 845-3500.

About Nyhart

Nyhart is one of the nation's largest actuarial and employee benefits consulting firm, operating since 1943. Nyhart is composed of actuaries, consultants, attorneys, accountants, and administrators, many of which have prior experience working at international consulting firms focusing in pension and retirement fund analysis, retirement benefits consulting and administration of employee benefits for private and public companies around the United States.

SOURCE Nyhart