Standard Register Selects Financial Engines to Provide Managed Accounts
PALO ALTO, CA, November 27, 2007 -- Financial Engines today announced that Standard Register, a leading document services provider, has made Financial Engines' professionally managed 401k account program the default investment option for its 3,500 employees. The decision to automatically enroll existing and new employees into managed accounts is part of Standard Register's strategic initiative to make participation, savings and successful investment in the company's 401k plan easier and simpler for its associates.
In an effort to improve participation in its 401k plan, Standard Register, in conjunction with its plan administrator, T. Rowe Price, began automatically enrolling new employees in its 401k plan in 2005. Each employee was automatically enrolled in the plan at a savings rate of 3%, increasing 1% per year up to 12%. Originally, employees were automatically invested in a stable value fund, but after the majority of employees failed to diversify their accounts, the company took action.
After evaluating alternatives, Standard Register decided to automatically enroll current and new employees in managed accounts using Financial Engines' "Passive Choice" approach. Starting in June 2007, Standard Register 401k participants were notified that their 401k accounts would be professionally managed by Financial Engines for a fee, starting in August 2007 unless they chose to manage their 401k themselves. Participants then received a plan preview that analyzed their portfolios and showed the recommended portfolio allocations Financial Engines would make if they remained in the program.
Once enrolled, Financial Engines handles all 401k portfolio investment decisions for managed account program members, reviewing their accounts on a quarterly basis to keep participants on track. Program members are kept informed with printed progress reports, and employees can speak to an Investment Adviser Representative if they have any questions or would like to personalize their portfolios further.
"Some employees can find investing in a 401k plan intimidating or bewildering, and we wanted to design our plan so that even if they do nothing, employees will be participating, saving more and investing appropriately for their individual retirement needs," explained Richard Mayer, Director of Benefits and HIPAA Privacy, at Standard Register. "We selected Financial Engines managed accounts because at a reasonable cost, managed accounts provide personalized portfolios, service and communications."
The Pension Protection Act of 2006 provided employers with encouragement to create automatic 401k plans. That legislation, combined with the recent Department of Labor (DOL) final regulation on qualified default investments that designated managed accounts as a "Qualified Default" investment, continue to drive strong employer demand for managed accounts. As a result, many companies are redesigning their 401k plans in an attempt to make participant success more automatic.
"Recent policy changes are the prescription for today's 401k afflictions," said Jeff Maggioncalda, president and CEO of Financial Engines. "Not applying the automatic 401k to existing employees is like finding a cure to a disease but choosing not to treat those who are already sick. Leading companies like Standard Register have recognized that existing employees need the most 401k help now."
After introducing managed accounts in September 2004, Financial Engines currently manages more than $15 billion in assets in 401k accounts for more than 200,000 participants as of October 31, 2007. The company works with leading 401k providers to make its suite of advisory services widely available.
About Financial Engines
Financial Engines is a leading provider of independent investment advice and managed accounts to 401k plans. Founded by Nobel Prize-winning economist, William F. Sharpe, Financial Engines serves millions of employees at many of America's largest corporations. Patented advice technology and institutional-quality investment methodology allow Financial Engines to offer an array of advisory services to meet the needs of a wide range of investors. For more information, please visit www.financialengines.com.
About Standard Register
Standard Register (NYSE:SR) is a premier document services provider, trusted by companies to manage the critical documents they need to thrive in today's competitive climate. Employing nearly a century of industry expertise, Lean Six Sigma methodologies and leading technologies, the company helps organizations increase efficiency, reduce costs, mitigate risks, grow revenue and meet the challenges of a changing business landscape. It offers document and label solutions, technology solutions, consulting and print supply chain services to help clients manage documents across their enterprise. More information is available at http://www.standardregister.com.
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