|
Small Business Briefs
Needham, MA (Gannett) - New TowerGroup research on the electronic or "e-401(k)" segment shows change on the way for the current defined benefit industry, which it said will translate into new levels of access for small businesses previously priced out of 401(k) participation.
Just as online brokers "forced a sea-change across the universe of full-service brokerages," e-401(k) is poised to significantly reduce the expense of sponsoring a 401(k) plan, making the vehicle more accessible to all employers regardless of company size, research report author Dennis Ceru said.
"Established players in this space need to take heed-the advent of electronic 401(k) is rapidly changing the competitive landscape in the defined benefit industry," Ceru said. "There is a significant push now underway to define new products for customers at the smaller end of the market. Once overlooked as too costly to service, even the micro-company segment (under 50 employees) can now be reached with e-401(k). Electronic 401(k) plans initiated, delivered and managed via the Internet are not only cost- efficient but highly scalable."
* Excerpts taken from full Gannett article, posted on December 14, 2000
|
