(b)Lines Information and Insights for the 403(b) community / brought to you by PLANSPONSOR.
December 12th, 2017

Institutional Investors Turn to Alternative Investments to Diversify

Seventy percent of institutional investors invest in alternative investment classes, according to Allianz Global Investors’ annual Risk Monitor survey. Among this group, 31% say it is to diversify their portfolio. Other reasons they gave: to establish a low correlation with other strategies (19%), to seek higher returns than conventional debt or equity investments offer (17%) and to reduce portfolio volatility (17%). Sixty-two percent say they need better tools to manage the risks associated with these asset classes.Read more >

Distinctions Persist

Since mid-2016, more than a dozen lawsuits have been filed against a number of prominent institutions of higher learning, alleging these universities breached their fiduciary duties to employees by offering 403(b) plans in a manner alleged to be too expensive and complex. In general, the suits mistakenly assume that 403(b) retirement plans offered by universities should follow the same blueprint as 401(k) plans. Stephen Saxon, a partner with Groom Law Group, Chartered, describes the significant differences in the origins, goals and legal treatment of 401(k) and 403(b) plans and why recent lawsuits have failed to appreciate these distinctions.Read more >
Can Plan Compensation Definition Include Housing Allowance?
“I work for a denominational church entity where ministers can exclude a portion of their compensation from taxable income as parsonage (housing) allowance. Can our 403(b) plan’s definition of compensation include housing allowance, even though it is not taxable income to the minister? If so, are there any other restrictions/limitations that would affect our ability to make an employer contribution on compensation designated as housing allowance?”Read more >

CIT’s Costs Attract Institutional Investors

A report from Cerulli Associates states the primary reason an institutional investor seeks out a collective investment trust (CIT) is the fact that it can often gain more favorable pricing compared to using other vehicles.Read more >

OneAmerica Hires Regional Vice President for East Coast Operations

OneAmerica has hired 25-year retirement industry veteran Todd Smiser to helm the company’s East Coast operations as regional vice president of retirement sales.Read more >

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

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