Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
October 12th, 2016
Benefits & Administration
Retirement Savers Should Plan for ‘Financial Shocks’ in Retirement
Nearly three-quarters (72%) of retirees experienced at least one financial shock, and for one-third of them, it depleted their savings by 25%, according to the Society of Actuaries’ (SOA) 2015 Risks and Processes of Retirement Survey.Read more >
Analysis Finds Keys to Successful Wellness Programs
The Health Enhancement Research Organization (HERO) and Mercer issued a report that indicates leadership support, workplace culture, and effective communications strategy are keys to effective health and well-being programs. An analysis of data from the HERO Health and Well-being Best Practices Scorecard in collaboration with Mercer (HERO Scorecard) found 56% of employers that use the HERO Scorecard have a formal, strategic plan in place to support their wellness program.Read more >
MOST READ ARTICLES
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2021 Plan Sponsor of the Year
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2020 Recordkeeping Survey
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CARES Act Considerations: CRDs, RMDs, Taxes and More
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Settlement Reached in Insperity 401(k) Excessive Fee, Self-Dealing Suit
Participants Investing Too Conservatively to Prepare for Retirement
Many Americans may be investing too conservatively to meet their retirement goals, according to the 2016 Wells Fargo Retirement Study. Talking through the results with PLANSPONSOR, Joe Ready, executive vice president and director of Wells Fargo Institutional Retirement and Trust, said he is always a bit puzzled by the subset of investors who choose to get involved in the markets, but who go with very low-return potential investments to protect themselves from anticipated downside risk. “It’s important that people are allocating their investments in a way that’s appropriate for their age and risk tolerance,” he added.Read more >
Upcoming Events
PLANSPONSOR is taking its popular PLANSPONSOR National Conference (PSNC) on the road to bring plan sponsors and retirement plan advisers in three major locations a sampling of the in-depth and insightful information provided at our national conference in June. In a half-day format, you’ll drill down into the latest industry trends and best practices concerning investments and participant communication and education; you’ll hear, too, from experts on the compliance front about the final fiduciary rule and the latest about all participant class action litigation. Join us in San Francisco, Chicago or New York in November and December!Read more >
Today’s active regulatory and litigation environment, combined with the ongoing search for the perfect post-retirement solution, has contributed to a “wait-and-see” mentality in the DC industry. But what incremental changes to plan design and investment choices can be made today to help plan participants increase future retirement success? And what is the level of effort needed for such changes? Join us for a webcast during which panelists from across the DC industry will come together in a lively point-counterpoint discussion on a few of these potential “easy wins” for plan sponsors as well as real-life implementation hurdles, and how to overcome them.Read more >
Sponsored message from JP Morgan Asset Management
Allowing inertia to work for participants can help strengthen DC plans. 1/3 of participants have never made a change to their initial choice of investment options. Learn how a plan re-enrollment can help. (Source: J.P. Morgan Plan Participant Research 2016.) Read more >
Products, Deals and People
Transamerica has partnered with Maxwell Health to release a new platform that simplifies benefits administration with onboarding and compliance tools. The firm’s services will provide employees with access to an online enrollment system, a benefits marketplace, and a mobile app for using benefits.Read more >
Market Mirror

Tuesday, the Dow lost 200.38 points (1.09%) to finish at 18,128.66, the NASDAQ closed 81.89 points (1.54%) lower at 5,246.79, and the S&P 500 decreased 26.93 points (1.24%) to 2,136.73. The Russell 2000 was down 23.14 points (1.85%) at 1,227.62, and the Wilshire 5000 fell 282.90 points (1.26%) to 22,237.71.

On the NYSE, 3.1 billion shares changed hands, with declining issues outnumbering advancing issues more than 6 to 1. On the NASDAQ, 2.9 billion shares traded, with a 5 to 1 lead for decliners.

The price of the 10-year Treasury note decreased 12/32, bringing its yield up to 1.765%. The price of the 30-year Treasury bond fell 31/32, increasing its yield to 2.504%.

Compliance
The Pension Benefit Guaranty Corporation (PBGC) reached an agreement with Alcoa Inc. to provide an additional $150 million in pension contributions to the company’s two largest pension plans, which cover more than 83,000 people.Read more >
Court Rejects Attempt to Restore Detroit Pension Benefits
In a challenge to pension reductions in the city of Detroit’s bankruptcy plan, the 6th U.S. Circuit Court of Appeals has found equitable mootness applies and prohibits plaintiffs’ challenges to the bankruptcy court’s Confirmation Order. Among other things, the court found rolling back items implemented in Detroit’s bankruptcy plan would harm countless third-parties, including the city.Read more >
Ask the Experts
Form 5500 Filing Tips
“We are preparing to file our 2015 Form 5500s for our ERISA retirement plans? Any last-minute filing tips from the Experts?”Read more >
Small Talk
Here’s something to try: If you have an itch on the left side of your body, look in the mirror and scratch the right side of your body to see if it relieves the itch. You can thank Christoph Helmchen, Carina Palzer, Thomas Münte, Silke Anders and Andreas Sprenger for discovering that (and vice versa) works. They are winners of the 2016 Ig Nobel Medicine Prize. More prize winners uncovered other helpful information. Read more >

ON THIS DATE: In 1492, Christopher Columbus, an Italian explorer, sighted Watling Island in the Bahamas. He believed that he had found Asia while attempting to find a Western ocean route to India. The same day he claimed the land for Isabella and Ferdinand of Spain. In 1792, the first monument honoring Christopher Columbus was dedicated in Baltimore, Maryland. In 1810, Bavarian Crown Prince Ludwig married Princess Therese of Saxony-Hildburghausen. The royalty invited the public to attend the event which became an annual celebration that later became known as Oktoberfest. In 1892, in celebration of the 400th anniversary of the Columbus landing, the original version of the Pledge of Allegiance was first recited in public schools. In 1933, the U.S. Department of Justice acquired Alcatraz Island from the U.S. Army. In 1989, the U.S. House of Representatives approved a statutory federal ban on the destruction of the American flag. In 1994, the Magellan space probe ended its four-year mission to Venus for the purpose of mapping. In 1998, the U.S. House of Representatives passed the Online Copyright Bill. In 1999, Rob Reiner received a star on the Hollywood Walk of Fame.

WEDNESDAY WISDOM: “To me, old age is always fifteen years older than I am.”―Bernard Baruch, financier, philanthropist and political consultant

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

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