CONTACT:

ADP Public Relations (973) 974-7612	Alexa Auerbach Morningstar, Inc. (312) 696-6481
Jaclyn Savage Cohn & Wolfe for ADP (212) 798-9518

 

 

ROSELAND, New Jersey and CHICAGO, Illinois -- June 28, 2006 -- ADP® Retirement Services, part of ADP Employer Services, a leading provider of integrated outsourced payroll, benefits and human resource services, and Morningstar Associates, LLC, a registered investment advisor and wholly owned subsidiary of Morningstar, Inc., today announced that ADP Retirement Services will offer the Morningstar® Retirement Manager(SM) Managed Account service to its retirement plan sponsors with an all-index-fund option. The service will provide employers with a way to give their retirement plan participants professional and affordable help with managing their 401(k) assets.

 

ADP is the only retirement plan provider that currently offers an all-index-fund managed account option with a portfolio of State Street Global Advisor (SSgA) Index Funds. SSgA is the investment management arm of State Street Bank & Trust Company. The SSgA all-index-fund option is a cost-effective solution for plan sponsors of all sizes, but particularly for small-to-mid-sized retirement plans.

 

"As traditional pension plans dwindle, defined contribution plans are fast becoming the primary savings vehicle for individuals looking to fund retirement. But, participants need help formulating a retirement strategy -- determining how much they need to save, how much to defer and what is the appropriate asset allocation to help them meet their retirement needs," said Patrick Reinkemeyer, President of Morningstar Associates, LLC. "That's why we are excited to work with ADP Retirement Services to help participants get on track to reach their goals."

 

According to Kendall Kay, Vice President of Marketing, Strategic Planning and Business Development for ADP Retirement Services, today's plan sponsors are very concerned about the trend toward low participation in company-sponsored retirement plans.

 

"Our plan sponsors look to ADP for solutions that can help to increase participation in their retirement savings plans. We've determined that participants often fail to select an appropriate contribution level and neglect to monitor their investments on an ongoing basis. The Managed Accounts service would address these issues," said Kay. "Some employees fail to join their company's plan because they are intimidated by the prospect of having to choose investments. The Managed Accounts option should alleviate their apprehension about making sound decisions about investments."

 

Kay also points out the benefits of offering a portfolio of index funds within the Managed Accounts option. "An asset allocation strategy using a diversified portfolio created from index funds that keep pace with the stock market can be a cost-effective method for saving for retirement," added Kay.

 

ADP Retirement Services is one of the largest recordkeepers of retirement plans in the nation, providing administrative services to more than 30,000 plans and 1.3 million plan participants across multiple market segments. Since 1989, the company has been offering its clients objective investment portfolios with no proprietary fund requirements, service and operational excellence, and progressive technology. Its participant experience is aimed at motivating employees to enroll in the plan and educating them to manage their retirement goals. For more information on ADP Retirement Services call 1-800-432-401K or visit www.adp401k.com.

 

About ADP

Automatic Data Processing, Inc. (NYSE: ADP), with over $8.0 billion in revenues and more than 600,000 clients worldwide, is one of the largest providers of a broad range of premier, mission-critical, cost-effective transaction processing and information-based business solutions. ADP® Employer Services (ES), a division of ADP, offers the widest range of HR, payroll, and benefit administration solutions from a single source, to meet the extensive business needs of employers worldwide. Built with more than 50-years of industry experience, ADP ES' cost-effective, easy-to-use solutions provide superior value to companies of all sizes. Approximately 540,000 companies rely on ADP ES for unparalleled service and compliance expertise, allowing them to focus on other core activities. For more information about ADP ES or to contact a local ADP sales office, reach us at 1.800.225.5237 or visit the company's Web site at www.ADP.com.

 

About Morningstar, Inc. and Morningstar Associates, LLC

Morningstar, Inc. is a leading provider of independent investment research. The company offers an extensive line of Internet, software, and print-based products and services for individuals, financial advisors, and institutions around the world. Morningstar provides data on more than 145,000 investment offerings, including stocks, mutual funds, and similar vehicles. Advisory services are offered through Morningstar Associates, LLC, a registered investment advisor and wholly owned subsidiary of Morningstar, Inc. As of Dec. 31, 2005, Morningstar Associates' retirement services were available to more than 9 million people through approximately 69,000 retirement plan sponsors and 30 plan providers.