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He is known as the father of the 401 (k), but Ted Benna is no fan of the fees and expanse of investment choices that sprang from his creation.
Now, writes Bruce Shutan for Employee Benefit Advisor, Benna “has reinvented the wheel for small businesses that struggle to afford a retirement benefit offering,” devising three new low-cost plan models (that) are explained in a do-it-yourself guide featuring both a Schwab and a Vanguard version that sells for just $8.99.”
Benna says he thinks the new models will be of interest to brokers “who sell voluntary benefits and want to provide added value to their small-businesses clients,” writes Shutan. The new models have no employer fees, and participants pay .5 per cent to .35 per cent, depending on the funds they pick.
“The difference is phenomenal,” Benna is quoted saying. “It basically eliminates the complications and expenses of a 401(k).”
More: New plan simpler and less expensive for employees and employers. For an ARIA interview with Benna, click here.

ARIA provides a forum for an informed discussion on retirement income adequacy, and other related issues, including pension and retirement coverage, and defined benefit pension plans – ARIA pensions blog, 12 Dunlop Street, Barrie, ON, L4N 1V6 – sitemanager@ariapensions.ca

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