This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

John Hancock Retirement Plan Services Leads Industry By Changing How 401(k) Plans Are Priced

BOSTON, March 5, 2014 /PRNewswire/ -- John Hancock Retirement Plan Services (JH RPS) announced today that it will implement a new way of pricing its 401(k) plan services that will help plan sponsors directly address the issue of fairness in the allocation of plan expenses among participants. Driven by a set of strong core values to help ensure retirement plans are built and run for the benefit of all participants, this enhancement is squarely focused on putting participants first.

In 2013, John Hancock launched the JH Enterprise platform which employs innovative technology to allow revenue sharing to be allocated so that all participants share plan costs equitably, in an open architecture, mutual fund based retirement plan.

"The response to JH Enterprise and specifically, interest in our ability to give plans the means to ensure a fair allocation of plan expenses among participants, has been tremendous," said Peter Gordon, president, John Hancock Retirement Plan Services. "Today we are announcing JH Signature 2.0, our separate account based platform which has an extremely elegant way of addressing this same objective. We are taking this bold action because we believe that this is an important and emerging issue for plan sponsors and want to clearly demonstrate our commitment to helping them achieve this objective."

This sentiment is echoed by Fred Reish (#3 on 401k Wire's 2013 Hundred Most Influential People in Defined Contribution). "The new 408(b)(2) disclosures have focused the attention of plan sponsors, lawyers and advisers on fees. In turn, that focus has raised questions about some participants paying, through their investments, more fees than others.  Therefore, many plan sponsors are investigating ways to equitably allocate plan costs over the accounts of the participants. I think John Hancock - for both their JH Enterprise and JH Signature 2.0 platforms - has captured the momentum of this focus and is well positioned to help plan sponsors directly address this issue of fairness in the allocation of plan expenses among participants."

Effective in May 2014, JH Signature 2.0 will introduce pricing based on John Hancock's "required revenue" to pay for recordkeeping services. This plan-specific amount will be completely independent of any investment choices or flow of assets.  This model will also allow plan sponsors and participants to better understand how their fees are collected and ensure that all participants are sharing plan expenses equitably.

"We think this is a huge step forward," said Gordon. "We see this as another example of John Hancock continuing to lead the industry by putting the participant first."

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,031.14 +43.63 0.26%
S&P 500 1,984.13 -1.41 -0.07%
NASDAQ 4,518.9020 -48.6960 -1.07%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs