Americans Participating in 401(k) Plans Give Bank of America Merrill Lynch Highest Marks in a Study of Financial Empowerment,...
May 19 2015 - 09:12AM
Business Wire
Company Tops List of 401(k) Plan Providers
Based on Independent Research From the National Association of
Retirement Plan Participants
Bank of America Merrill Lynch has been rated the nation’s most
successful 401(k) plan provider, according to a study by the
National Association of Retirement Plan Participants (NARPP), a
nonprofit organization and advocate for individual savers in these
plans. Findings from NARPP’s second annual Participant FELT Study™
are based on interviews with more than 4,300 active retirement plan
participants.
FELT – which stands for Financial Empowerment, Literacy and
Trust – is a pioneering study that identifies key drivers of
savings rates and other behaviors of 401(k) plan participants, and
explores how and where service providers have been successful in
helping employees engage with their plans and improve financial
literacy and outcomes.
“Our latest research shows that Bank of America Merrill Lynch is
one of the most trusted brands in the industry, and receives among
the highest marks for education programs offered to plan
participants,” said Laurie Rowley, NARPP co-founder and president.
“Without question, employees’ trust in a 401(k) service provider
has a tremendous impact on the degree to which they engage with
their plan. When combined with education, this can lead to higher
levels of confidence among employees and improved outcomes when
preparing for their financial future.”
The Participant FELT Study was designed by NARPP with Boston
Research Technologies and professors from Stanford University. The
study includes a FELT Score, the first standardized metric to
evaluate how well record-keepers are engaging and educating their
plan participants, the level of trust that participants have in
their record-keeper, and the corresponding participants’ financial
literacy and rates of deferral. Among 18 of the nation’s leading
401(k) plan providers evaluated through this study, Bank of America
Merrill Lynch received the highest overall score based on insights
gathered from plan participants.
“Though there’s work to be done across the industry to further
improve participant programs and confidence, we are proud to have
earned the top spot in this study. The achievement reflects our
commitment to helping make people’s lives better, in part through
the work we do every day with plan sponsors to tailor financial
education and communication programs to align with needs of their
employees,” said David Tyrie, head of Retirement and Personal
Wealth Solutions for Bank of America Merrill Lynch. “We offer a
range of financial education resources across several channels,
including in-person, phone, online and via mobile devices, so
employees can choose the avenues that fit their needs and
preferences. This is one of several areas that demonstrate our
company’s focus on helping people make more informed decisions,
achieve better outcomes and improve their overall financial
wellness.”
A recent Bank of America Merrill Lynch report showed that last
year, nearly four out of five active 401(k) participants in its
plans who made a change to their plan made a positive one, by
either starting or increasing their contributions.1 The report
found that among the 2.5 million employees in these plans, more are
taking greater advantage of the financial education resources
offered to them by their employers. For instance, meetings with
Merrill Lynch educational specialists increased 14 percent last
year, calls to the company’s Retirement Education Services center
increased 18 percent and visits to its online Education Center
increased 15 percent. The company also saw a 46 percent increase in
the number of unique visits to its Benefits OnLine®
mobile/smartphone-optimized site, as employees increasingly seek
self-service information about preparing for retirement when it’s
most convenient for them.
1 401(k) Wellness Scorecard is based on the Bank of America
Merrill Lynch proprietary 401(k) business, which comprises $128.9
billion in total client plan assets and 2.5 million total plan
participants as of December 31, 2014.
About NARPPNational Association of Retirement Plan Participants
(NARPP) is a San Francisco-based 501(c)(3) non-profit organization
whose mission is to advocate for individual savers. Through
pioneering research, independent coalition building, and innovative
educational programs, NARPP is making financial information
transparent and universally accessible for the 145 million working
Americans saving for retirement.
Bank of AmericaBank of America is one of the world's largest
financial institutions, serving individual consumers, small and
middle-market businesses and large corporations with a full range
of banking, investing, asset management and other financial and
risk management products and services. The company provides
unmatched convenience in the United States, serving approximately
48 million consumer and small business relationships with
approximately 4,800 retail financial centers and approximately
15,900 ATMs and award-winning online banking with 31 million active
users and approximately 17 million mobile users. Bank of America is
among the world's leading wealth management companies and is a
global leader in corporate and investment banking and trading
across a broad range of asset classes, serving corporations,
governments, institutions and individuals around the world. Bank of
America offers industry-leading support to approximately 3 million
small business owners through a suite of innovative, easy-to-use
online products and services. The company serves clients through
operations in all 50 states, the District of Columbia, the U.S.
Virgin Islands, Puerto Rico and more than 35 countries. Bank of
America Corporation stock (NYSE: BAC) is listed on the New York
Stock Exchange.
Bank of America Merrill Lynch is a marketing name for the
Retirement Services business of Bank of America Corporation (“BofA
Corp”). Banking activities may be performed by wholly owned banking
affiliates of BofA Corp, including Bank of America, N.A. (BANA),
member FDIC. Brokerage services may be performed by wholly owned
brokerage affiliates of BofA Corp, including Merrill Lynch, Pierce,
Fenner & Smith Incorporated (“MLPF&S”), a registered
broker-dealer and member SIPC.
Investment products:
Are Not FDIC Insured Are Not Bank Guaranteed May Lose
Value
© 2015 Bank of America Corporation. All rights reserved.
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Reporters May Contact:Matt Card, Bank of America,
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