Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
January 11th, 2017
Benefits & Administration
Eighty percent of Millennials said they would prefer to work for a company with a 401(k) plan, according to a survey by Fisher Investments 401(k) Solutions. However, 80% of Millennials failed Fisher’s 401(k) IQ in the Workplace Quiz, indicating that they are in need of education about retirement planning.Read more >
Mobile and Web Abilities Valued by DC Participants Has Changed
In establishing criteria for its annual Monitor Awards, given for best practices in online and mobile innovation for 2016 by defined contribution (DC) plan recordkeepers, Corporate Insight surveyed close to 1,500 participants and found the top-15 features most commonly identified by participants as “very important” or “extremely important” saw a considerable amount of change since the 2013 survey. In addition, Corporate Insight found recordkeepers are offering more focus on retirement income projections and overall financial wellness.Read more >
2022 Recordkeeping Survey
TRIVIAL PURSUITS: How Many States Are in More Than One Time Zone?
TRIVIAL PURSUITS: Which are the most northern, southern, eastern and western U.S. States?
Defined Benefit Plans May Have New Life
TRIVIAL PURSUITS: Meaning and Origin of the Idiom “Watershed Moment?”
Study Reveals Behaviors to Increase Retirement Confidence
Although the majority of Americans believe preparing for retirement is important, a new study by The Guardian Life Insurance Company of America suggests that most lack adequate savings and long-term financial plans. Financial literacy, a detailed plan, and owning appropriate products to financially protect their families can boost confidence.Read more >
Employers Explore Ways to Boost 401(k) Contributions in 2017
Even though employees are increasingly participating in 401(k) plans, 85% of employers say they are not satisfied with employee savings rates, according to a study by Aon Hewitt. The firm also revealed that 90% of employers are concerned about their employees’ understanding of how much they need to save in order to meet their retirement goals. As a result, 87% of employers plan to make changes in order to solve this issue. Read more >
Sponsored message from Vanguard
Constructing a DC investment lineup Four best practices
Target-date funds are changing the dynamics of participant decision-making. Vanguard has best practices for constructing a lineup: identifying plan objectives, focusing on investing basics, creating a lineup from plan objectives, and ensuring oversight.  Read more >
Products, Deals and People
DirectPath, a provider of employee health care engagement and compliance tools, has signed an agreement to acquire Patient Care, a Milwaukee-based health care advocacy and transparency company. Patient Care’s advocacy and transparency services help employees better understand the complicated health care system and make informed decisions about health care spending.Read more >
NextCapital and John Hancock Retirement Plan Services are announcing a multi-channel partnership that will expand automated retirement advice offerings across John Hancock’s IRA and 401(k) rollover business.Read more >
Economic Events

November 2016 sales of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations and trading-day differences but not for price changes, were $452.6 billion, up 0.4% from the revised October level and were up 3.4% from the November 2015 level, the Census Bureau announced.

Market Mirror

Tuesday, the Dow closed 31.85 points (0.16%) lower at 19,855.53, the NASDAQ closed 20.00 points (0.36%) higher at 5,551.82, and the S&P 500 was virtually unchanged at 2,268.90. The Russell 2000 increased 13.41 points (0.99%) to 1,370.90, and the Wilshire 5000 was up 20.17 points (0.09%) at 23,743.51.

On the NYSE, 3.1 billion shares changed hands, and on the NASDAQ, 2.9 billion shares traded, with advancing issues outnumbering declining issues nearly 2 to 1 on both exchanges.

The prices of the 10-year Treasury note and 30-year Treasury bond were both down 3/32, increasing their yields to 2.380% and 2.966%, respectively.

J.C. Penney to Settle Stock Drop Suit
A federal court judge has preliminarily approved a settlement in a class action against J.C. Penney Corp. over its handling of the company stock fund in its retirement plan. The company has agreed to pay $4.5 million to resolve a lawsuit alleging it failed to drop the company stock fund from its retirement plan after it was no longer a prudent investment.Read more >
Ask the Experts
Rolling Over from One Plan to Another Within a Controlled Group
“A physician who has moved from one entity in our controlled group to another is wanting to roll over his 403(b) balance into the 401(k) plan of the new entity. Is this allowed, even though he is not considered severed from employment due to the controlled group rules?”Read more >
While there was some reaction to major events in 2016, 401(k) participants mostly stayed the course in their investments, according to the Aon Hewitt 401(k) Index. “The rise of assets in target-date funds accounts for some of the light-trading in 401(k)s we saw in 2016,” explains Rob Austin, director of retirement research at Aon Hewitt.Read more >
Small Talk
MONEYSAVINGPRO used a variety of factors to determine the best—and worst—states in which to retire.Read more >
ON THIS DATE: In 1805, the Michigan Territory was created. In 1861, Alabama seceded from the union. In 1878, in New York, milk was delivered in glass bottles for the first time by Alexander Campbell. In 1902, “Popular Mechanics” magazine was published for the first time. In 1913, the first sedan-type car was unveiled at the National Automobile Show in New York City. The car was manufactured by the Hudson Motor Company. In 1922, at Toronto General Hospital, Leonard Thompson became the first person to be successfully treated with insulin. In 1964, U.S. Surgeon General Luther Terry released a report that said that smoking cigarettes was a definite health hazard. In 2000, the U.S. Postal Service unveiled the second Vietnam Veterans Memorial commemorative stamp in a ceremony at The Wall.



WEDNESDAY WISDOM: “If your actions inspire others to dream more, learn more, do more and become more, you are a leader.”—John Quincy Adams

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Editorial: Alison Cooke Mintzer


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