Press Article

McDonald's Weighs Retiree Advice
From Institutional Investor

McDonald's is considering adding an advice service to help retiring participants in its $2 billion, 25, 500-life 401(k) plan manage distributions from their savings. If it moves ahead, McDonald's would conduct an open search for the service.

Bob Wittcoff, senior director of global benefits, said McDonald's offers participants managed accounts and guidance on fund selection, but those services do not help retirees who need to withdraw from their account.

Many participants now end up taking a lump sum. Retirees need help with modeling their retirement plan based on factors such as age, health risks, home mortgages and educational expenses. "[for example] there are a lot of people who buy the boat, but can't afford it," Wittcoff said.

The idea to add the advice service came about a month ago from McDonald's advice provider, GuidedChoice, a La Jolla, Calif.-based firm, which is testing a distribution advice service but does not yet offer one, said Ken Naatz, director of global benefits. Naatz said he did not know of any other advice provider with a managed account for distribution.

McDonald's has also expanded the number of funds it offers participants from 7 to 0 adding a real estate fund and a small-cap fund. Hewitt Associates is the recordkeeper. Ellwood Associates acts as a consultant.