Enactment makes saving and generating retirement income easier
COLUMBUS, Ohio, Aug 4 /PRNewswire/ -- With the face of retirement in
America rapidly changing, Nationwide Financial Services, Inc. (NYSE: NFS)
today applauded the passing of the Pension Protection Act for addressing
some of the country's new public policy needs.
"The three-legged stool Boomers were promised at the start of their
careers -- traditional pension plans, Social Security and personal savings
-- has left many Americans on shaky ground," said Mark Thresher, Nationwide
Financial president and COO. "The legislation passed last night will help
many Americans start moving toward a more sure-footed retirement with
easier ways to save and to generate guaranteed lifelong income."
The legislation, co-sponsored by Education and the Workforce Committee
Chairman John Boehner, R-Ohio, and Ways and Means Committee Chairman Bill
Thomas, R-Calif., has among its provisions:
Automatic Enrollment -- One in four workers covered by a 401(k) plan
does not participate. Yet according to Employee Benefit Research Institute,
40 percent of non-participants would be very likely to stay in a plan if
their employer automatically enrolled them. Today's legislation changed the
legal environment to help plan sponsors make it easier for their employees
to start saving.
Safest available annuity standard -- By encouraging plan sponsors to
offer annuities as a direct distribution option, it will be easier for
Americans to turn their retirement plan savings into lifelong income. In
short, it allows 401k plan assets to be paid out more like a traditional
pension plan upon retirement.
Permanency of Contribution Limits -- The legislation makes permanent
the higher contribution limits Americans can make toward their
employer-sponsored retirement plans. This makes it easier for Americans to
more adequately prepare for retirement, especially for those who need to
catch up on their savings as they near retirement.
"This legislation offers many improvements, but it does not remove
retirement policy from the forefront of our national discussion," Thresher
added. "As our society ages and sources of retirement income change,
policymakers and business leaders should do more than just prevent a
crisis; we should develop a comprehensive policy that helps retirees in
their continued pursuit of their retirement dreams."
About Nationwide Financial(R)
Nationwide Financial Services, Inc. (NYSE: NFS), a publicly traded
company based in Columbus, Ohio, provides a variety of financial services
that help consumers invest and protect their long-term assets, and offers
retirement plans and services through both public- and private-sector
employers.
It's part of the Nationwide group of companies, which offers
diversified insurance and financial services. The group is led by
Nationwide Mutual Insurance Company, which is ranked No. 98 on the Fortune
100 based on 2005 revenue(1). For more information, visit
http://www.nationwide.com.
(1) Fortune Magazine, April 2006
SOURCE Nationwide Financial Services, Inc.
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Related links:
http://www.nationwidefinancial.com/
http://www.prnewswire.com/comp/607050.html/
CONTACT:
Jennifer Monnin, +1-614-677-5391, or
monninj@nationwide.com, or Jeff Botti, +1-614-249-6339, or
bottij@nationwide.com, both of Nationwide Financial Services,
Inc.
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