PORTLAND, Ore., Feb. 7 /PRNewswire/ -- Standard Retirement Services ("The Standard"), a subsidiary of StanCorp Financial Group, Inc. has reported that assets in RightPath, its next generation defined contribution (DC) plan, have topped one billion dollars. RightPath was launched in late 2004 by Invesmart, Inc., after four years of research and development, as a participant-focused approach to traditional Defined Contribution (DC) plans. Invesmart, Inc. was purchased by The Standard in 2006.
Participants who enroll in the RightPath program have the choice of managing their account themselves or electing an unbiased, fee-based managed account alternative called AdvicePath. With AdvicePath, participants' investments and contribution levels are managed by StanCorp Investment Advisors, Inc., The Standard's registered investment adviser.
Seventeen percent of employees enrolling in the RightPath program were not previously contributing to an employer-sponsored retirement plan. In addition, 44 percent of participants who enrolled in RightPath increased their contribution levels following the enrollment meeting, resulting in an average total increase of 3.75 percent of pay. During the enrollment process, 58 percent of participants who enrolled in RightPath have selected the AdvicePath managed account alternative.
"We are very pleased with RightPath's strong record of success in just over two years. We are especially happy with the high rate of participant adoption we are experiencing with our managed account option. We believe our current 58 percent adoption rate is an industry-leading figure," said Kent Buckles, vice president, Sales, Marketing and Advisory Services at The Standard. "Invesmart's integration with The Standard is progressing very well, and we look forward to being able to offer RightPath through The Standard's group annuity platform sometime during the second half of this year."
The RightPath program is dedicated to helping participants build their nest egg for a financially secure retirement through objective advice from unbiased investment professionals. Since the program's inception just over two years ago, more than 300 qualified plans have either converted or are in the process of converting to RightPath. These plans represent a total of approximately 28,000 participants and just over $1 billion in assets.
The Standard has provided retirement plan services for more than 70 years. Products are available on a full service or recordkeeping-only basis. The Standard promotes a participant-centric approach with services such as AdvicePath, its highly successful managed account option for plan participants. For more information on The Standard's retirement services, visit retirement.standard.com.
About The Standard
StanCorp Financial Group, Inc. ("StanCorp") through its subsidiaries marketed as The Standard -- Standard Insurance Company, The Standard Life Insurance Company of New York, StanCorp Investment Advisers, Standard Retirement Services, StanCorp Equities, StanCorp Trust Company and StanCorp Mortgage Investors -- is a leading provider of financial products and services. The Standard serves approximately 8.1 million customers nationwide as of December 31, 2006 with group and individual disability insurance, group life and dental insurance, retirement products and services and investment advice. For more information about The Standard visit http://www.standard.com/.
Disclosure
Information in this news release includes certain statements related to projected growth and future events. These statements are "forward-looking" statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Because such statements are subject to risks and uncertainties, actual results in future periods may differ materially from those expressed or implied by such forward-looking statements. Past performance is no guarantee of future results. See StanCorp's 2005 annual report on Form 10-K and most recent Form 10-Q filed with the Securities and Exchange Commission for a description of the types of uncertainties and risks that may affect actual results.
