Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
January 24th, 2018
Benefits & Administration
Sibson Suggests How to Measure Employee Retirement Readiness
One of the most important things a company can do to ensure its well-being is to assess the retirement readiness of each of its employees, not just those approaching retirement, according to Sibson Consulting. “Quantifying retirement readiness involves understanding what savings employees will need to attain a secure retirement, gathering relevant financial and other data on all employees and then running the numbers to determine how each employee stacks up,” says Doron Scharf, senior vice president with Sibson. Sibson suggests that employers consider one or more of the following three metrics: replacement ratio, wealth accumulation target and retirement readiness grade. Read more >
Millennials Face Many Challenges in Preparing for Adequate Retirement
However, researchers say their outcome could possibly improve, given the fact that they still have a long time horizon to save, the markets could deliver strong returns and the government could save Social Security. Read more >
PLANSPONSOR Research
PLANSPONSOR’s Defined Contribution Survey – Plan Benchmarking report gathers data from thousands of plan sponsors about their plan design and administration, providing industry benchmarks. The survey is a study in contrasts and a demonstration of some surprisingly striking similarities among plans of varying sizes. Order your copy now. Read more >
MOST READ ARTICLES
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Study Proposes a “Simple” Strategy for Retirement Income
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Millennials May Have Wrong Expectations About Retirement
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A Retirement Draw Down Strategy Starts With Education
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Verizon Pensioners Still Want to Recoup ERISA Protections
5
IRS Announces 2018 Contribution/Benefits Limits
Ask the Experts
410(b) Coverage Testing for Firms With Both 401(k) and 403(b)
“A hospital sponsors a 403(b) plan for the vast majority of its employees, but also sponsors a 401(k) for a small wholly-owned for-profit physicians’ practice. The plan sponsor had been testing the 401(k) plan separately for 410(b) coverage testing, and had been passing each year. I believe that is not correct, and that the 403(b) plan employees should have been included as eligible employees in the 401(k) and 401(m) coverage tests, but not benefitting, which in this case would have resulted in coverage test failures.” Read more >
Products, Deals and People
PlanMember Launches Collection of Websites
The provider of retirement planning services to public education and nonprofit organizations says the websites provide information on retirement for individuals at every career and life stage, as well as employers and advisers. Read more >
New Firm Links Health to Retirement Savings
The firm’s first white paper shows how effectively managing health conditions can save money for employees, and if that savings is invested in retirement plans, generate more income in retirement. Read more >
Market Mirror

Tuesday, the Dow was down 3.79 points (0.01%) at 26,210.81, the NASDAQ gained 52.26 points (0.71%) to finish at 7,460.29, and the S&P 500 was up 6.16 points (0.22%) at 2,839.13. The Russell 2000 increased 5.54 points (0.35%) to 1,610.71, and the Wilshire 5000 closed 80.30 points (0.27%) higher at 29,472.98.

The price of the 10-year Treasury note was up 9/32, decreasing its yield to 2.616%. The price of the 30-year Treasury bond increased 13/32, bringing its yield down to 2.892%.

Compliance
Cadillac Tax Delayed Again
The bill that ended the government shutdown and provided funding until February 8 also included a two-year delay in the Affordable Care Act’s (ACA) excise tax on high-cost health plans, known as the Cadillac tax. Read more >
Investing
Vanguard and Fidelity Fee Arrangement Shifts, Reflecting Industry Trends
Fidelity signals in a new report that it will soon begin charging a 0.05% fee on assets invested through its platform into Vanguard products. Read more >
Small Talk
Three out of five employees say they lack the time or motivation to persist with their health-related New Year’s resolutions, according to Tell It Now survey results released from ComPsych. Some respondents to the survey indicated friends and family are bad influences. Read more >

ON THIS DATE: In 1848, James W. Marshall discovered a gold nugget at Sutter’s Mill in northern California. The discovery led to the gold rush of ’49. In 1908, in England, the first Boy Scout troop was organized by Robert Baden-Powell. In 1922, Christian K. Nelson patented the Eskimo Pie. In 1935, Krueger Brewing Company placed the first canned beer on sale in Richmond, Virginia. In 1965, Winston Churchill died at the age of 90. In 1985, Penny Harrington became the first woman police chief of a major city. She assumed the duties as head of the Portland, Oregon, force of 940 officers and staff. In 1990, Japan launched the first probe to be sent to the moon since 1976. In 2000, the U.S. Supreme Court upheld a Missouri law that limited the contributions that individuals could donate to a candidate during a single election. In 2002, the U.S. Congress began a hearing on the collapse of Enron Corp. In 2003, the U.S. Department of Homeland Security began operations under Tom Ridge.


WEDNESDAY WISDOM:
“The only courage that matters is the kind that gets you from one moment to the next.”—Mignon McLaughlin, American journalist and author

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

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