Press Release
CitiStreet Helps Businesses with 'New Comparability' Retirement Plans
Retirement Contributions Can be Maximized to Owners and Valued Employees
EAST BRUNSWICK, NJ, October 21, 2003 -- The Retirement Services Division (RSD) of CitiStreet, a global provider of benefit and retirement services, has recently enhanced services for retirement plan sponsors concerning "new comparability" plans, which can help employers maximize retirement contributions for themselves and their most valued employees.
In new comparability plan designs, federal tax law allows plan participants to be grouped into different classes. If a group is, on average, older than the other groups, an employer may target a larger contribution to them because they are closer to retirement age, while still meeting tax law rules. Older, highly valued employees and business owners are the primary beneficiaries of such plans. "New comparability plans add increased flexibility for employers and increased savings opportunities, which they are demanding. CitiStreet has enhanced its services in this area to meet that demand," said Patrick Bello, RSD managing director for corporate markets.
Some employers using a new comparability formula can contribute up to $40,000 each year for a business owner or other valued employee, Bello noted. The plans permit the most significant contributions for businesses with fewer than 25 employees, and are especially appealing to professional firms such as law, engineering or medical practice groups.
Along with a broad range of retirement plan recordkeeping and investment services, CitiStreet RSD supports new comparability designs through regular communications with a law firm or consulting firm to design and document the plan and compute each year's contributions.
CitiStreet's Retirement Services Division, based in New Jersey, is one of three CitiStreet divisions in the United States. RSD serves more than 10,000 business, healthcare, education, government and not-for-profit organizations ranging from start-up businesses to large organizations. The other CitiStreet divisions are Total Benefits Outsourcing in Jacksonville, Fla., and the Institutional division, which is based in Quincy, Mass.
About CitiStreet
CitiStreet, one of the largest global benefits delivery firms in the United States, is headquartered in Quincy, Mass. It has 3,500 employees and offices in East Brunswick, N.J., Jacksonville, Fla., Lewiston, Maine, and Boston, and field offices around the nation. It also has a division, CitiStreet Australia, with offices in Sydney and Brisbane. CitiStreet serves more than 8 million participants and administers $170 billion in assets in the United States for defined contribution, defined benefit and health and welfare plans of corporate, government, health care, Taft-Hartley and not-for-profit organizations. It also serves more than 800,000 participants and administers about $3.5 billion in assets outside the United States. CitiStreet is a 50/50 joint venture between State Street Corp. (NYSE:STT) and Citigroup (NYSE:C). For more CitiStreet information, visit the Web site at www.citistreetonline.com.
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