The ‘managed accounts’ program covers more than 10,000 of the 122,000-plus retirement accounts managed by the state.
The front of the Alaska State Capitol in Juneau is seen on Wednesday, April 12, 2023. the closure of its commonly used managed accounts program after an independent review found workers were being charged high fees and receiving lower-than-expected returns.
“When you’re comparing a managed account to a mutual fund, that’s like an apples-to-oranges comparison,” said Stephen Gawlick, a spokesperson for Empower. Excluding the value of that management is “a disservice to the plan participants who actually need advice,” Gawlick said. That appears to have compounded problems for many employees. The managed account system is designed around a “funding ratio” based on retirement age and the amount saved in the account. If someone has less than required by the ratio, the system constrains their investment options, reducing returns.
He joined his union’s retirement committee and began advocating for a change. The retirement management board began investigating the issue in 2022, resulting in the release of the third-party report this year and the recommendation to close the program to new entries. “There’s no secret,” said Susan Ritter, the Anchorage School District teacher who recently discovered she was in the managed account program. “You can’t retire in Alaska. You really aren’t set up to retire.”
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Eldorado Gold updates 2023 guidanceCanada-headquartered Eldorado Gold has tweaked its guidance for gold production, cost and capital expenditure (capex) to narrow the ranges, reflecting its updated expectations for the company. Gold production is expected to be 475 000 oz to 495 000 oz, from the previous guidance of 475 000 oz to 515 000 oz.
Lire la suite »
Alaska retirement board recommends closure of widely used plan after analysis finds flawsThe ‘managed accounts’ program covers more than 10,000 of the 122,000-plus retirement accounts managed by the state.
Lire la suite »
State’s draft energy plan highlights familiar Alaska megaprojects, offers vague plans for renewablesThe draft lays out some broad intentions to bring more renewable energy to the state. It also calls for the controversial Alaska LNG pipeline.
Lire la suite »
Alaska Fishermen Struggle as Rules to Save King Salmon Limit Their CatchRestrictions intended to protect shrinking populations hurt commercial fishing on Kenai Peninsula
Lire la suite »
Alaska state-owned corporation intends to spend $7 million in 2024 on Ambler RoadA mining firm and the Alaska Industrial Development and Export Authority will have spent a combined $54 million on the project by the end of 2024.
Lire la suite »
OPINION: Vic Fischer never lost his enthusiasm for Alaska’s futureHe became a kind of compass for the values of striving for the public good held by Alaska’s early leaders.
Lire la suite »