Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
October 5th, 2016
Benefits & Administration
Student loan payments are preventing Millennials from making several investment decisions and life choices, with 38.7% saying they’ve had to delay retirement saving, a survey finds.Read more >
Social Security comprises 56% of women’s income in retirement, according to Nationwide. However, 70% of Social Security will go toward women’s health care costs. Only 5% of women wait to collect Social Security benefits at age 70 or later. More than one third (35%) of women said they were not able to do the things they wanted to in retirement, and 24% said health care costs were hindering their retirement dreams.Read more >
Health Plan Sponsors Focused on Compliance and Controlling Costs
Employers have introduced a number of tactics to control costs, and many are turning to consultants to help with compliance. Read more >
MOST READ ARTICLES
1
How to Effectively Measure Retirement Plan Success
2
2020 Recordkeeping Survey
3
CARES Act Considerations: CRDs, RMDs, Taxes and More
4
The NQDC Market
5
Settlement Reached in Insperity 401(k) Excessive Fee, Self-Dealing Suit
Low Interest Rates Not the Driving Force Behind Lower DB Funding
When it comes to funding defined benefit (DB) pension plans, it is commonly understood that the discount rate used to compute liabilities plays a significant role, as a lower discount rate results in a higher liability, which could lead to a lower funded status. An analysis from the Society of Actuaries finds plans with lower discount rates actually had lower unfunded liabilities.Read more >
U.S. DC Plan Participants Report Higher Retirement Confidence
A study of retirement savers in the U.S., UK and Ireland found those in the U.S. are more confident about retirement as well as financial wellness.Read more >
Sponsored message from Empower
Empower Retirement’s Lifetime Income Score Report The sixth annual Lifetime Income ScoreSM report includes survey results from more than 4,000 American workers. Based on individual responses, it estimates the percentage of working income that American households are on track to replace in retirement. Read more >
Market Mirror

Tuesday, the Dow lost 85.40 points (0.47%) to finish at 18,168.45, the NASDAQ closed 11.22 points (0.21%) lower at 5,289.66, and the S&P 500 decreased 10.71 points (0.50%) to 2,150.49. The Russell 2000 was down 6.01 points (0.48%) at 1,239.77, and the Wilshire 5000 fell 111.07 points (0.49%) to 22,392.41.

On the NYSE, 3.1 billion shares traded, with declining issues outnumbering advancing issues more than 2 to 1. On the NASDAQ, 2.9 billion shares changed hands, with a 1.6 to 1 ratio of decliners to advancers.

The price of the 10-year Treasury note decreased 18/32, bringing its yield up to 1.688%. The price of the 30-year Treasury bond fell 1 14/32, increasing its yield to 2.411%.

Ask the Experts
Can CITs Be Used in 403(b)s?
“I read your Ask the Experts regarding exchange-traded funds (ETFs) and 403(b) plans, but what about collective investment trusts? Are they permissible investments in 403(b) plans?”Read more >
Investing
More Conservative Pension Allocation Fares Better
An analysis by October Three found that for the year, a pension with a more moderate allocation was down deeper than one with a more conservative allocation.Read more >
Small Talk

ON THIS DATE: In 1813, Chief Tecumseh of the Shawnee Indians was killed at the Battle of Thames when American forces defeated the British and their allied Indian warriors. In 1921, the World Series was broadcast on the radio for the first time. The game was between the New York Giants and the New York Yankees. In 1931, Clyde Pangborn and Hugh Herndon landed in Washington after flying non-stop across the Pacific Ocean. The flight originated in Japan and took about 41 hours. In 1969, “Monty Python’s Flying Circus” debuted on BBC television. In 1974, American David Kunst completed the first journey around the world on foot. It took four years and 21 pairs of shoes. He crossed four continents and walked 14,450 miles. In 1989, the Dalai Lama (Lhama Dhondrub, Tenzin Gyatso) was named the winner of the Nobel Peace Prize for his nonviolent campaign to end the Chinese domination of Tibet. Gyatso was the 15th Dalai Lama. In 1999, Kevin Spacey received a star on the Hollywood Walk of Fame.

SURVEY SAYS RESPONSES: For fiduciary reasons, it is recommended that retirement plan sponsors benchmark their providers every three to five years by issuing a request for proposals (RFP) or a request for information (RFI). I asked NewsDash readers, “When was the last time your company performed a benchmarking for providers, and did you find something that led you to make a change?” Nearly half of responding readers (45.7%) reported that the last time their company issued an RFP or RFI just to benchmark a plan provider was in the past one to two years. Twenty percent reported that it was more than 10 years ago. Slightly more than 17% indicated the last time their company issued an RFP or RFI just to benchmark a plan provider was in the past three to five years, and 5.7% said it was in the past five to 10 years. More than one-third (34.3%) said their company found something in the RFP or RFI responses that led to a change in providers, while 40% did not. Based on verbatim comments by respondents who chose to do so, issuing an RFP or RFI is a great way to get current providers to negotiate fees. Fees were also key factors in deciding to change providers. One respondent pointed out that aside from fees, issuing an RFP provides little opportunities to change as “It’s a lot like buying eggs.” Editor’s Choice goes to the reader who said: “I learned at the 2016 PSNC that we could be doing better… in terms of fees. We may be issuing our first RFI since 2000 in the coming year.” A big thank you to all who participated in the survey! Read more >

WEDNESDAY WISDOM: “It’s always too early to quit.”—Norman Vincent Peale, minister

Share the good news with a friend! Pass the NewsDash along—and tell your friends/associates they can sign up for their own copy.Read more >

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

Advertising: advertise@strategic-i.com

Subscribe to NEWSDash, click here .

To unsubscribe, click here.

BrightScope / CIO / FWW / Investor Economics / LiquidMetrix / Market Metrics / Matrix Solutions / PLANADVISER / Plan For Life / PLANSPONSOR / Simfund