Avon Teams With MONY to Offer Retirement Plan For Avon's Independent U.S. Sales Representatives
First Ever Retirement Plan in the Direct Selling Industry
Nov 9, 2001
Avon Products, Inc. (NYSE: AVP), in conjunction with MONY Benefits Service Corp., today launched a retirement savings program that will enable its 500,000 independent sales representatives in the United States to save a portion of their earnings in a tax-deferred retirement plan. Structured as a 401(a) retirement savings plan, it offers individuals a convenient way of saving for retirement by investing their earnings on an after-tax basis.
Avon said it is the first direct selling company to offer a retirement savings plan to its independent sales representatives.
MONY Benefits Service Corp., a subsidiary of MONY Life Insurance Company (MONY Life), will sponsor the plan under a two-year exclusive agreement. A company with a 159-year heritage, MONY Life was the first to provide life insurance to women in 1843. MONY Life is the primary insurance subsidiary of The MONY Group Inc. (NYSE: MNY), whose member companies provide individual and institutional clients with a variety of financial products and services in order to help them meet their financial goals.
"Avon is proud to be the first company in our industry to offer this valuable savings plan to help our independent sales representatives prepare for their financial future," said Andrea Jung, Avon chairman and chief executive officer. "In addition to providing a variety of outstanding career opportunities for entrepreneurial women, now we also enable them to plan and invest for their retirement. This is another way to enhance our relationship with our most valuable resource, the Avon sales representative."
"This partnership is a natural fit for us," said Michael I. Roth, chairman and chief executive officer of The MONY Group. "MONY has the experience and ability to provide clients with appropriate, comprehensive solutions that help pre-retirees and small- to mid-sized business owners achieve their financial goals. In addition, our heritage as one of the first companies to help women prepare for their financial future makes this partnership even more unique."
The Avon plan offers a choice of investment funds from Fidelity Investments and The Enterprise Group of Funds -- The MONY Group's mutual fund family. These funds include: The Enterprise Money Market Fund A, Enterprise Government Securities Fund A, Enterprise Growth Fund A, Enterprise Small Cap Company Value Fund A, Enterprise Equity Fund A, as well as the Fidelity Advisor Growth & Income Fund A and the Fidelity Advisor Large Cap Fund A.
Avon independent sales representatives can contribute, in accordance with the plan's guidelines, a portion of their after-tax earnings every two-weeks in some or all of the seven investment choices. Avon independent sales representatives must be in good standing with the company and actively selling for at least six consecutive sales campaigns to be eligible to enroll in the plan.
In order to provide state-of-the-art administration of the program, MONY has formed an alliance with the Burke Group, which will provide (for certain low fees) administration services for the representatives who participate in the plan. Burke Group is a Rochester, NY-based retirement administration firm that has developed a unique Internet-based solution providing Avon independent sales representatives with the tools to implement and monitor the 401(a) retirement savings plan.
About The MONY Group
The MONY Group Inc., with $55 billion in assets under management and administration, provides life insurance, annuities, mutual funds, brokerage, asset management, business & estate planning, trust and investment banking products and services to individual and institutional clients through several member companies.
The MONY Group focuses primarily on offering customized financial solutions through multiple distribution channels, including a career sales force, brokerage general agencies, financial advisors, brokers, and other complementary channels. The MONY Group's (http://www.mony.com/) member companies include The Advest Group, Inc., MONY Life Insurance Company, Matrix Capital Markets Group, Inc., Enterprise Capital Management, Inc., U.S. Financial Life Insurance Company, MONY Securities Corporation and Trusted Securities Advisors Corp.
Securities are offered by MONY Securities Corporation, Member NASD, SIPC; 1740 Broadway; New York, NY 10019; (800) 736-0166.
Mutual funds are sold by prospectus, which contains more information regarding fees, risks, and expenses. Participants in the Avon retirement savings plan should read it carefully before investing or sending money.
About Avon Products, Inc.
Avon is the world's leading direct seller of beauty and related products, with $5.7 billion in annual revenues. Avon markets to women in 139 countries through 3.4 million independent sales representatives. Avon product lines include such recognizable brands as Anew, Avon Color, Skin-So-Soft, Advance Techniques Hair Care, beComing and Avon Wellness. Avon also markets an extensive line of fashion jewelry, apparel and collectibles. More information about Avon and its products can be found on the company's award-winning web site http://www.avon.com/.
SOURCE: Avon Products, Inc.
Contact: Media - Laura Castellano of Avon Products, Inc.,
+1-212-282-5345; Doug Myers, +1-212-708-2472, or Christopher Breslin,
+1-212-708-2435, both of The MONY Group Inc.; Investors - Carol Murray-Negron
or Renee Johansen, both of Avon Products, Inc., +1-212-282-5320; Jay Davis of
The MONY Group Inc., +1-212-708-2917
Company News On-Call: http://www.prnewswire.com/comp/079575.html
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