DST Introduces 'Auto Pilot' Capabilities for Defined Contribution Plans


TRAC AutoVantage to help boost retirement savings

KANSAS CITY, Mo., Oct. 10 // -- Retirement plan providers can soon offer plan sponsors a full suite of automation capabilities designed to increase participant savings. TRAC AutoVantage(TM) from DST Systems, Inc. will enable plan sponsors to auto-enroll participants in their defined contribution plans, as well as provide automatic investment selection and automatic deferral increase.

The recently signed 2006 Pension Protection Act (PPA) opens the door for widespread adoption of automation as a tool to address inadequate plan participant savings. Plan sponsors have been concerned about assuming fiduciary responsibility for automatically deducting contribution monies from employees' paychecks, and about selecting default investments in an auto program on behalf of employees. The PPA offers protection from states' anti- garnishment laws that prohibit payroll deduction without express approval from the employee. The PPA also protects employers that offer default investments for employees who do not affirmatively elect an investment option.

"Automatic enrollment by itself is not enough," said Jim Walsh, vice president DST Systems. "It is critical that the auto-default investment provided by the plan sponsor is appropriate for the participant, and that the automated solution actively builds savings. DST is committed to providing a full suite of automation capabilities to our plan providers and their sponsors in order to help them effectively increase retirement savings among plan participants."

DST's TRAC(R) retirement recordkeeping platform has supported automatic enrollment of plan participants since 2001. TRAC's new auto-investment selection functionality will complement auto-enrollment by making actively managed lifecycle/target maturity funds available as default options for plan participants; periodically rebalanced asset allocation models may be used as well. The new auto-deferral increase capability will enable automatic annual percentage increases in participant pre-tax contributions until the participant reaches a plan-specified salary deferral rate.

The full TRAC AutoVantage suite is scheduled for general availability by the end of 2006.

"The PPA clears the way for a comprehensive approach to automation," said Jeff Carroll, client relationship officer for DST Systems, Inc. "We now see a lot of renewed interest and excitement in the industry about the role of automation as a solid foundation for building retirement savings. Plan sponsors need solid technology solutions to achieve their goals when adopting auto-enrollment plans. We are excited to provide them with such a comprehensive tool."

DST Systems, Inc. provides sophisticated information processing and computer software services and products that help clients improve productivity, increase efficiencies, and provide higher levels of customer service. DST is organized domestically and internationally into two operating segments: Financial Services and Output Solutions. DST operates one of the most advanced data centers in the world, which provides information-processing services to support the products within each operating segment. These products are further enhanced through the integration of DST's advanced technology and e-commerce solutions.

Source: DST Systems, Inc.

CONTACT: Jill Metzler, Media Relations, DST Systems, Inc.,
+1-816-843-9087

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