EXCERPT:

"Just a few years ago... hundreds of firms jumped to offer retirement plans for a range of clients, from large multinational companies to small concerns.... But now, in the wake of recent market volatility, several retirement-plan providers are facing lower revenue.... The rate of growth is slowing and profit margins are shrinking. At the same time, the competition is more intense than ever. As a result, some retirement-plan providers have started reconsidering their strategies in the 401k market."

OTHER POINTS:

Merrill Lynch & Co. CFO recently told analysts "that the firm is scaling back parts of its 401k business."

United Asset Management Corp. recently announced it was closing UAM Retirement Plan Services, "a wholly owned affiliate that provides bundled retirement-plan services" and plans "to focus just on managing 401k assets."

MFS Investment Management... "last month shifted away from servicing retirement plans for smaller companies, primarily because it is so expensive."

For complete text, contact The Wall Street Journal at www.djreprints.com.