Friday, January 8, 2010

Register  |  Subscribe  |  RSS  |  Current Issue

Adviser Compensation
and Staffing Study

The Leading News Source for Financial Advisers

Archives Stock Lookup ETF/Fund Lookup

HOME

NEWS & OPINION

News by Topic/Section

Associations/Trade Groups

Broker-Dealers/Independents/Wirehouses

Compliance/Regulation

Financial/Estate Planning

Insurance

Investments

Managed Money/SMAs/Hedge Funds

Mutual Funds/ETFs

Retirement

RIAs/Custodians

Short Interests

Taxes

Technology

Wealth Management

Columns

Fiduciary Corner

IN Practice

Investment Insights

Investment Strategy

IRA Alert

Marketing Strategies

On Retirement

Online OpINion

Practice Management

Retirement Watch

Succession Planning

Tax-Conscious Adviser

Tax INsight

Tech Bits

Opinion

Editorials

Just Thinking

Letters to the Editor

Online OpINion

Other Voices

Thinking Out Loud

Weekly Poll

Write to the Editor

Special Reports

Anniversary Issue

Data Book

Interactive Independent Broker-Dealer Profiles

Roundtables

Top RIA Rankings

Wealth Management Market Reports

More Special Reports

PRINT EDITION

Current Issue

Past Issues

Search Archives

Subscribe

ONLINE EDITION

Ask the CPA

Conference Calendar

ETF Center

From the Fiduciary

From the Headhunter

Interactive Independent Broker-Dealer Profiles

Online Columns

IN Practice

On Retirement

Online OpINion

Tech Bits

Weekly Poll

Practice Management

Retirement Center

Tax INsight

Top RIA Rankings

Video

Wealth Track

White Papers

NEWSLETTERS

InvestmentNews Daily

Weekly Issue Alert

InvestmentNews Regulatory Alert

IN Tech

Subscribe

EVENTS

Adviser Compensation Workshops

Awards

Community Leadership Awards

Retirement Income Communications Awards

US Lipper Fund Family Award Winners

Conference Calendar

ETF Insights Online Conference

Going Independent Workshop

Retirement Income Summit

Webcasts

TOOLS & RESOURCES

BD Recruitment Connection

Business Resources

Career Connection

Industry Links

Investment Tools

RSS Feeds

Software Connection

Sponsored Supplements

White Papers

TRAINING CENTER

COMMUNITY

Related topics:

Individual retirement accounts (IRAs)

Rollovers

Retirement

Rollover firm on a roll

By Sara Hansard
November 8, 2009, 6:01 AM EST

Post a Comment

| | | |

The lousy economy hasn't been bad for everyone.
More companies and workers have abandoned 401(k) plans amid the downturn, and that has helped Millennium Trust Co. LLC, which provides rollover services to companies that terminate 401(k) plans or are unable to contact 401(k) account holders who have left.
The accounts must have less than $5,000 in them, and they average about $3,000 each.
Millennium Trust is able to find between 60% and 75% of such account holders annually, according to Terry Dunne, senior vice president and a director of automatic rollovers at the company.
In addition to companies' going out of business because of the poor economy, the high unemployment rate has led to more 401(k) account holders' losing their jobs and not letting companies know what they want done with their 401(k) balances, he said. Further, more companies are turning to auto-rollover individual-retirement-account specialists to handle abandoned plans, because they aren't equipped to track down former employees, Mr. Dunne said.
“The economy is such that more employees are on the street. There's a greater number of people that are not communicating with the company as to what it is they want to do with their retirement balances,” Mr. Dunne said.
Assets in auto-rollover IRAs set up by Millennium Trust increased 77% in the first 10 months of this year, compared with a 73% increase for all of 2008, he said.
Assets increased to $195 million at the end of last month, from $110 million at the beginning of the year, Mr. Dunne said. At year-end 2008, the company had $95 million in auto-rollover IRA assets, up from $55 million at the beginning of the year.
The number of auto-rollover IRAs at Millennium increased to 70,000 by the end of October, a 56% increase from 45,000 accounts at the beginning of the year, Mr. Dunne said.

| | | |

Recommend this article?

User Comments

Reproductions and distribution of the above news story are strictly prohibited. To order reprints and/or request permission to use the article in full or partial format please contact our Reprint Sales Manager at (732) 723-0569.

Most Read

1. New Janus CEO to focus on mutual fund inflows, says firm's chairman

2. Kohl may expand fiduciary tag in retirement market

3. New networking site for advisers said to comply with Finra regs

4. TCW sues ex-exec Gundlach for $200M

5. Price war heats up as Schwab lowers stock and ETF commission to $8.95

Latest News

» Financial sector see first jobs gain since July ’07

» Shooter in ABB attack was suing company, Fidelity over 401(k) fees

» Aberdeen to buy RBS money management units for $135M

» Citispooked? Controversial bank director to leave

» Economy loses 85K jobs, unemployment rate steady at 10%

About Us | Contact Us | Search | Editorial Calendar | Advertise

Subscriber Services:  Subscribe | Renew | Subscription Status | Pay an Invoice | Change Mail Address

Reprints | List Rental | Issue Index | Privacy Policy | Terms & Conditions

Crain Financial Group:  Pensions & Investments | FinancialWeek | Workforce Management Copyright © 2010 Crain Communications Inc.
Use of editorial content without permission is strictly prohibited. All rights reserved. 711 Third Ave., 3rd Floor, New York, NY 10017

Fund Data Provided by

Markets Data Provided by

|