Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
September 22nd, 2017
Webcast Event
Target-date funds (TDFs) have become one of the most common default investment offerings in defined contribution plans today, but they’re not perfect. TDFs can be a less expensive, one-size-fits-all solution. Research shows that more personalized solutions like managed accounts may potentially improve chances for helping participants reaching their financial goals, but they often come at a higher cost. A hybrid, dynamic solution can offer a combination of the two. On September 28, please join Morningstar Investment Management LLC speakers David Blanchett, head of Retirement Research, and Daniel Bruns, product manager, Large Plan Practice, as they explore the potential benefits of a dynamic investment approach; which types of plans and participants dynamic investment approaches tend to be best suited for; and the possible advantages and disadvantages of both TDFs and managed accounts. Read more >
Benefits & Administration
Singles Have More Retirement Concerns Than Married Couples
While 44% of single people are saving for retirement, this jumps to 63% among married people, TD Ameritrade found in a survey. Just more than one-third, 34%, of singles expect to be very financially secure in retirement, compared to 52% of married people. Forty-six percent of unmarried people worry about running out of money in retirement, compared to 38% of married folk. Read more >
MOST READ ARTICLES
1
2015 PLANSPONSOR TDF Buyer’s Guide
2
What 403(b) Plan Sponsors Can Learn From Recent Lawsuits
3
2017 Participant Survey
4
TDFs Outperformed Typical DC Investor Since 2006
5
Voya Sued for Charging Excessive Fees to Small Retirement Plan
Products, Deals and People
Voya Extends Framework Retirement Program to Tax-Exempt Market
Framework, the mutual-fund based retirement program by Voya Financial, is now available to plan sponsors across all full-service retirement plan markets served by the firm. These include sponsors servicing 403(b) and 457(b) qualified retirement plans for government, health care, non-profit and higher education employers, as well as those running non-qualified plans. Read more >
Wagner Law Group Offers Assistance in Absence of Determination Letter Program
Following the Internal Revenue Service’s (IRS)’s elimination of its determination letter program for tax-qualified retirement plans, The Wagner Law Group developed its Private Determination Letter Program (PDLP) to assist plan sponsors. Read more >
Sponsored message from AVIVA
Global High Yield: Diminishing returns? Global high yield bonds have done well year to date. Kevin Mathews, Aviva Investors’ Global Head of High Yield, discusses what’s next. Read more >
Economic Events

In the week ending September 16, the advance figure for seasonally adjusted initial claims for unemployment insurance was 259,000, a decrease of 23,000 from the previous week’s revised level of 282,000, the Labor Department reported. The four-week moving average was 268,750, an increase of 6,000 from the previous week’s revised average of 262,750. This is the highest level for this average since June 4, 2016, when it was 269,500.

The average interest rate for a 30-year fixed-rate mortgage is 3.83%, up from 3.78% one week ago, according to Freddie Mac. The average interest rate for a 15-year fixed-rate mortgage is 3.13%, up from 3.08%.

Market Mirror

Thursday, the Dow lost 53.36 points (0.24%) to finish at 22,359.23, the NASDAQ closed 33.35 points (0.52%) lower at 6,422.69, and the S&P 500 was down 7.64 points (0.30%) at 2,500.60. The Russell 2000 decreased by 1.24 (0.09%) to 1,444.18, and the Wilshire 5000 fell 67.92 points (0.26%) to 25,982.11.

The price of the 10-year Treasury note was down 2/32, increasing its yield to 2.278%. The price of the 30-year Treasury bond was up 4/32, decreasing its yield to 2.804%.

Compliance
EEOC Says 74-Year-Old Worker Forced to Retire After Medical Leave
S&C Electric Co. in Chicago unlawfully fired an employee on the bases of age and disability, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit. As people are living longer and wanting to work longer, the EEOC recently held a meeting about the Age Discrimination in Employment Act (ADEA), and witnesses made suggestions about how regulators and employers can reduce age discrimination and help people work longer. “After an approved leave, S&C refused to allow an employee with over a half century of service to simply return to work,” says Julianne Bowman, the EEOC’s district director in Chicago. “Our investigation revealed Mr. Rascher was fully cleared to return to work, but that S&C insisted he ‘retire’ instead.” Read more >
From the Magazine
Why You Need To Keep Minutes
So you’ve been reading our article series regarding retirement committees and how to be a good fiduciary. You’ve been preparing for meetings, attending and engaging in discussions at the meetings, considering your investment adviser’s guidance and generally acting prudently. That’s great! Now it is time to demonstrate that prudence. Taking and retaining good committee minutes is vital to protecting yourself as a fiduciary. Read more >
Small Talk

ON THIS DATE: In 1789, Congress authorized the office of Postmaster General. In 1862, U.S. President Abraham Lincoln issued the preliminary Emancipation Proclamation. It stated that all slaves held within rebel states would be free as of January 1, 1863. In 1903, Italo Marchiony was granted a patent for the ice cream cone. In 1927, in Chicago, Gene Tunney successfully defended his heavyweight boxing title against Jack Dempsey in the famous “long-count” fight. In 1949, the Soviet Union exploded its first atomic bomb successfully. In 1961, U.S. President John F. Kennedy signed a congressional act that established the Peace Corps. In 1998, the U.S. and Russia signed two agreements. One was to privatize Russia’s nuclear program and the other was to stop plutonium stockpiles and nuclear scientists from leaving the country. In 1998, U.S. President Bill Clinton addressed the United Nations and told world leaders to “end all nuclear tests for all time”. He then sent the long-delayed global test-ban treaty to the U.S. Senate.

And now it’s time for FRIDAY FILES!

If at first you don’t succeed, try again. Read more >
Someone please give this reporter a tissue. Read more >
What this reporter was eating was not Grape Nuts as he thought. Gross. Read more >

In Geneva, Switzerland, a bank and three restaurants had clogged toilets recently. Clogged with high-denomination Euro banknotes, that is. The Tribune de Geneve newspaper UBS bank in Geneva’s financial district, and three nearby bistros, found their facilities clogged with 500-euro notes within a few days of each other. The cash was confiscated during the investigation and it was unclear who would get it if it was found to be lawful. According to Reuters, a spokesman for prosecutors said there was no immediate reason to think it was dirty money. (Ummm, it is now.)

 

In Stewartstown, Pennsylvania, a woman called police to report a man had entered her home and wouldn’t leave. They found a man who had forced himself into the home and sat down with two 12-packs of be.er. The man said he didn’t want to drink alone. According to the Associated Press, police said he did the same thing at another woman’s home earlier that day.

 

In Freeport, New York, a woman found a German Shepherd-Jack Russell Terrier mix dog and took it to a Long Island and New York City rescue group called Bobbi and The Strays. The group traced its microchip and tracked down its family in West Palm Beach, Florida. According to the Associated Press, the family was surprised because the dog had been missing since February 2016.

 

In Santa Fe, New Mexico, a man was eating at Shake Foundation restaurant. He says another man walked up to him, slapped him in the face, grabbed his green chile cheeseburger and ran from the scene. According to the Associated Press, police caught up with the suspect and arrested him for robbery.

 

In LaPorte, Indiana, in a bit of irony, a man held up a gas station and got away with food, drinks and cigarettes. The (Northwest Indiana) Times reports police found him soon after stranded on the side of the road with his vehicle out of gas.

 

Have a wonderful weekend!

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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

Advertising: Paul Zampitella paul.zampitella@strategic-i.com

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