401(k) Plans Eye Annuities With Caution

Given the stock market’s volatility, a number of 401(k) plan sponsors are seriously discussing adding an annuity option to their 401(k) plans.

Ever since his company closed its defined-benefit plan to new hires in 2007, Tony Cost has been looking for ways to guarantee his 401(k) plan participants some post-retirement income. But it’s just been recently that his colleagues have started to take his idea more seriously.

"This could mean a hell of a lot to a retiree," says Cost, who is vice president of HR at Silgan Containers, a Woodland Hills, California-based container manufacturer with 4,000 employees.

Given the stock market’s volatility, Silgan is one of a number of 401(k) plan sponsors seriously discussing adding an annuity option to their 401(k) plans. With most employees’ 401(k) accounts decimated, the idea of providing guaranteed post-retirement income seems attractive, experts say...

Workforce Management: 401(k) Plans Eye Annuities With Caution