(b)Lines Information and Insights for the 403(b) community / brought to you by PLANSPONSOR.
October 13th, 2017

Savings Rates Drop in the U.S.

Savings rates in the U.S. have plummeted to a five-year low, according to the U.S. Bureau of Economic Analysis. A recent study by hybrid digital bank PurePoint Financial finds that Americans cite rising health care costs and living expenses as the main drivers of their financial pessimism. Read more >

Federal Reserve Data Shows Strengthening Economy’s Impact on the DC Space

“The release of the Federal Reserve’s 2016 Survey of Consumer Finances (SCF) is a great opportunity to see how a strengthening economy, the continued maturation of the 401(k) system, and steady stock market returns have affected workers’ retirement wealth,” say researchers with the Center for Retirement Research (CRR) at Boston College. The Fed’s analysis concludes that 401(k) plans “could work much better and balances would be higher if all plans were fully automatic.” Read more >
ASK THE EXPERTS
Questions to Skip on Form 5500
“As we are preparing to finalize our 2016 Form 5500s in time for the extended deadline, a colleague of mine has stated that there are some questions on the form that it would appear that we should answer, but that the Internal Revenue Service (IRS) has actually suggested we skip. That sounds bizarre to me; is that possible?” Read more >

Communicating With Terminated and Retired Participants

Some communications with terminated participants are required by law, but plan sponsors can take this farther—from offering the opportunity to repay loans to invitations to social events. Read more >

The Thrust of Fiduciary Liability Insurance

In a world of heightened plan sponsor scrutiny, fiduciary liability insurance can be a powerful tool. Read more >

Out-of-Pocket Health Care Spending Chipping Away at Retirement Income

The high cost of Medicare is significantly reducing retirement income for a large portion of Americans, according to a study by the Center for Retirement Research (CRR) at Boston College. The organization found that, in 2014, average out-of-pocket (OOP) spending—excluding long-term care—was $4,274 per year. Approximately two-thirds of that, or $2,965, was spent on premiums. Read more >

Settlement Agreement Reached in Church Plan Challenge

A federal judge has preliminarily approved a settlement agreement between participants of the St. Joseph’s Hospital and Medical Center pension plan and St. Joseph’s Hospital. As with many similar complaints, the lawsuit challenges whether the plan was really a “church” plan and not subject to Employee Retirement Income Security Act (ERISA) funding rules. Many terms of the agreement are similar to provisions of the Employee Retirement Income Security Act (ERISA). Read more >

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

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

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