Nationwide’s Retirement Innovator offers fiduciary protection and a simpler retirement plan option for small businesses
FOR IMMEDIATE RELEASEJan. 30, 2007
Columbus, Ohio—Nationwide Financial Services, Inc. (NYSE: NFS) announced today a simpler retirement plan solution that provides documented fiduciary protection. Using its Nationwide Retirement Innovator® and a combination of investment options, businesses can find peace of mind in meeting their fiduciary responsibilities, according to experienced ERISA attorney Fred Reish.
Fiduciary responsibility is an everyday reality for businesses that offer a retirement plan. The obligation of ultimately being responsible for a participant’s investment options within a company’s retirement plan weighs heavily on many plan sponsors, and in some cases, deters them from offering a retirement plan altogether.
In partnership with ERISA expert Fred Reish and Stephanie Bennett, an attorney who specializes in employee benefits law, Nationwide has released a white paper titled, “Nationwide Retirement Innovator: Fiduciary Protection Under 404(c)” to help plan sponsors find comfort in offering a program that is appropriate for their employees.
As explained by Fred Reish, “Nationwide Retirement Innovator offers a unique opportunity to plan sponsors. It helps reduce risk and the possibility of a fiduciary lawsuit against the plan sponsors, while at the same time improving the investment options and retirement preparation for their employees.”
“We wanted to find a solution that meets the collective retirement savings needs of America’s workers, while helping plan sponsors reduce their fiduciary liabilities,” said Bill Jackson, president of Nationwide Retirement Plans.
Fred Reish concurs with Jackson’s thoughts and offers his legal perspective of Nationwide Retirement Innovator:
The combination of the target maturity retirement funds with a mutual fund window creates several advantages for plan sponsors.
- By offering target maturity funds as the core line-up, plan sponsors help their participants invest well, that is, it is likely that most of the employees will invest in portfolios that are specifically designed for accumulating savings for retirement and that are structured consistent with ERISA’s fiduciary principles.
- The Nationwide Financial Fund Window, which does not require that participants establish a separate trading account or pay additional fees, will allow employees who may be more knowledgeable about investing to craft their own portfolios, thereby providing flexibility to the plan.
- Through a wide variety of investments, Innovator helps plan sponsors obtain the fiduciary protections of ERISA 404(c), while the target retirement funds help the plan sponsors obtain the fiduciary protections under the new rules for qualified default investment alternatives included in the Pension Protection Act of 2006.
By pairing these two investment options together, Nationwide Retirement Innovator exceeds ERISA’s “broad range” requirement.
For a copy of Nationwide Retirement Innovator: Fiduciary Protection Under 404 (c), plan sponsors can call toll free 1-888-262-401k.
About Nationwide Financial
Nationwide Financial Services, Inc. (NYSE: NFS), a publicly traded company based in Columbus, Ohio, provides a variety of financial services that help consumers invest1 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. 104 on the Fortune 500 based on 2006 revenue2. To obtain investor materials, including the Company’s 2006 Annual Report to Shareholders, 2006 Annual Report on Form 10-K, quarterly statistical supplements and other corporate announcements, please visit the investor relations section of the Company’s Web site at www.nationwide.com.
Investment options offered through Nationwide’s Fund Window may require investment expertise and/or professional management advice to prudently manage. In addition, some of these investment options may have higher Nationwide asset fees than the designated investment options. Nationwide does not make recommendations or give investment advice.
1Trust programs and trust services are offered by Nationwide
Trust Company, FSB a division of Nationwide Bank®. Nationwide Investment
Services Corporation, member FINRA. In Michigan Only: Nationwide
Investment Svcs. Corporation. Nationwide Mutual Insurance Company and
Affiliated Companies, Home Office: Columbus, OH 43215-2220
2 Fortune Magazine, April 2007
Nationwide, Nationwide Bank, Nationwide Financial, the Nationwide Framemark and On Your Side are federally registered service marks of Nationwide Mutual Insurance Company.