Companies Adopting EGTRRA Provisions

Transamerica's small and mid-sized 401k clients are taking advantage of EGGTRA, reports the bundled plan provider. Transamerica reports that 95 percent of clients implemented new rollovers, 91 percent added the catch-up provision for employees age 50 and over and 71 percent have upped deferral limits.

AIM Parent Fills de Guardiola Director Slot

Amvescap shareholders elected Denis Kessler, 49, as a non-executive member of the Board of Directors. Kessler is an economist and executive chairman of the French Federation of Insurance Companies (FFSA) and executive vice chairman of the French Business Confederation (MEDEF). He replaces Roberto de Guardiola, a non-executive director since 1997, who resigns after de Guardiola Advisors accepted consulting work with Amvescap.

More Company Stock Please

Enron is shaking 401k investor faith, yet employees still want their company stock. Forty-three percent of active, individual investors are less confident in the stock market since the Enron collapse, according to a TowersGroup sponsored survey of retirement plan investors. Fewer than a quarter (23 percent) now say stock market prices reflect the fair value of stocks. This is no surprise as 88 percent said Enron's executives, board, auditors or attorneys intentionally misled the public. Still, 70 percent of survey respondents claim they're comfortable with the amount of company stock in their retirement plans, and nine percent would like to own more. Opinion Research ran the poll that has a margin of error of +/- 5 percent at the 95 percent confidence level.

CBS Taps GoldK

Third-party administrator CBS Payroll has selected the GoldK platform for its retirement offering. Fort Worth, Texas-based CBS Payroll will private label the e401k recordkeeping service, said Tammy Sykes, director of Pension Services for CBS Payroll. The firm uses the Web to distribute its services nationally.

Nikko Joins Enron Suit

Nikko Asset Management is joining the list of firms in a U.S. class action suit against Enron its auditor Arthur Andersen. The Japanese asset manager suffered losses on bonds held in a bond fund it advises. Nikko is one of three Japanese investment trust companies joining the suit, reports the Nihon Keizai Shimbun.

Safeco Buys Two

Safeco is purchasing two insurance units from reinsurer Swiss Re. The deal covers the U.S. medical excess-loss insurance and group life insurance businesses at Swiss Re. Terms of the deal were not disclosed. It is set to close in June. 

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