NEWARK, N.J.--(BUSINESS WIRE)--

Prudential Retirements Jamie Kalamarides, senior vice president of Institutional Investment Products, testified today during a U.S. Senate Special Committee on Aging hearing on the shortage of retirement savings plans among small businesses.

Kalamarides discussed Prudential Retirements support for expanding retirement coverage through multiple small employer plans, which would allow groups of employers to pool resources under a single defined contribution plan, resulting in lower costs and simplified administrative requirements. Kalamarides testified that the establishment of multiple small employer plans may help close the retirement income gap for the more than 78 million employees who do not have a retirement plan, and help improve overall retirement security.*

During his testimony, Kalamarides explained that compliance with ERISAs reporting, disclosure and fiduciary requirements may be a concern for many small employers and, the ability to reallocate these responsibilities to professionals through a multiple employer plan would remove a major impediment to small employers extending retirement savings opportunities to their employees. Kalamarides further explained that, if multiple employer plans are to play a meaningful role in closing the retirement coverage gap clarifications and changes in the law are necessary, including expanding multiple employer plan sponsorship, reallocating fiduciary and plan administration responsibilities and eliminating nondiscrimination testing. For full version of testimony (link to testimony) and white paper, (link to whitepaper).

Prudential Retirement delivers retirement plan solutions for public, private, and non-profit organizations. Services include state-of-the-art record keeping, administrative services, investment management, comprehensive employee investment education and communications, and trustee services. With over 85 years of retirement experience, Prudential Retirement helps meet the needs of over 3.6 million participants and annuitants. Prudential Retirement has $229.5 billion in retirement account values as of December 31, 2011. Retirement products and services are provided by Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT, or its affiliates.

Prudential Financial, Inc. (NYSE: PRU - News), a financial services leader with approximately $901 billion of assets under management as of December 31, 2011, has operations in the United States, Asia, Europe, and Latin America. Prudentials diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudentials iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit http://www.news.prudential.com/.

* Employee Benefit Research Institute, Employment-Based Retirement Plan Participation: Geographic Differences and Trends, 010, Issue Brief No. 363, October 2011

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Prudential Retirement Calls for Establishment of Multiple Small Employer Plans