OneAmerica Adds Retirement Plan Tailor Option
The new adaptive account program could improve how well asset allocations fit participants' needs.
A retirement services provider is offering employers another set of tools: custom-tailored default accounts.
(Related: A New Approach to Sustainable Retirement Income)
The provider, Indianapolis-based OneAmerica, has agreed to distribute Russell Investments’ Adaptive Retirement Accounts managed account program.
OneAmerica will market the managed account program through a trust business that lets employer clients choose retirement plan options from a wide range of money managers. The employer clients include for-profit companies, nonprofit organizations, and government employers.
Russell Investments, which is based in Seattle, says the adaptive accounts program can be an alternative to use of target date funds.
The program collects information about a plan participant’s characteristics, the participant’s goals, and any assets the participant holds outside the plan. The system then provides a personalized investment portfolio tailored to suit the participant’s needs.
Participants who invest in target date funds choose the funds based mainly on the participant’s age and anticipated date of retirement.
Managers of the Russell Investments adaptive accounts program say the adaptive accounts program can develop portfolios that reflect other factors, such as the participant’s gender, salary, contribution rate and level of market experience.
The program reviews and adjusts a participant’s asset allocation every quarter, Russell Investments says.
OneAmerica issues the products in the retirement plan trusts through its American United Life Insurance Company unit.
Either McReady and Keene Inc. or OneAmerica Retirement Services LLC handles the plan administration services.
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