(b)Lines Information and Insights for the 403(b) community / brought to you by PLANSPONSOR.
November 20th, 2018

Last call for plan sponsors and advisers in San Francisco and Houston!

We’ve already had three successful Best of PSNC events, and are heading west after Thanksgiving. We’ll be talking about regulation and litigation, investment menu considerations, financial wellness, and QDIA considerations, among other topics in a concise half-day format. Join us next week in San Francisco and Houston for PLANSPONSOR’s final two conferences of 2018!Read more >

Editor’s Note

(b)lines will be back in your inbox next Tuesday. Hope everyone has a safe and happy Thanksgiving!

Fund Menus, Fee Structures Still Trending Toward Simplification

According to Jason Brafman, director at John Hancock Investments, defined contribution (DC) retirement plan sponsors continue to pare back their investment menus in the interest of making it easier for participants to build rational allocations. “The pendulum is still swinging back toward smaller fund lineups,” Brafman said during the Best of PSNC 2018 event in Boston. “The reason is because we know much more about analysis paralysis these days, and the popularity of offering an asset-allocation solution as the qualified default investment alternative [QDIAs] makes having a large number of funds unnecessary, frankly, and even potentially harmful for participant performance.”Read more >

Senate Democrats Present Bill to Encourage Workers to Save for Retirement

The bill would revive the myRA program and replace the Saver’s Credit with a government matching contribution.Read more >
403(b) Treatment of Payment to Employee After Retirement
“The private school at which I work has a contractual agreement to pay a former administrator who retired last year $15,000 in 2018. Is the payment considered to be ‘compensation’ for 403(b) plan purposes, and is the plan sponsor thus obligated to withhold elective deferrals from this amount and make the plan’s matching contribution with respect to those deferrals?”Read more >

Some Plan Design Choices Could Undermine Participant Outcomes

Setting defaults too low, choosing the wrong default investment and offering company stock as an investment option could result in unintended consequences, BlackRock found.Read more >

Half of Americans Think Market Volatility Has Increased

Nearly half (48%) of Americans believe they are exposed to greater market risk today than they were before the 2008 financial crisis, Natixis Investment Managers learned in a survey of 750 investors. Nonetheless, Americans expect annual returns of 9.8%, which advisers say is significantly higher than what is realistic. Those who entered the financial markets think their returns should be 11.3% above inflation. “A decade of rising markets, low interest rates and subdued volatility may have given investors unreasonable expectations and a false sense of security,” says David Giunta, CEO for U.S. and Canada for Natixis Investment Managers.Read more >

myStockOptions.com Updates Year-End Planning Web Page

Employees with equity grants, employee stock purchase plans and company shares should be aware of effects from the Tax Cuts and Jobs Act.Read more >

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

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