Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
April 11th, 2018
Benefits & Administration
Employees Need to Improve Retirement Planning
Many retirees say they are surprised by the expenses they have been faced with in retirement, according to the Wells Fargo/Gallup Investor and Retirement Optimism Index poll. In addition, 22% of retirees said they retired earlier than they had hoped. The survey finds most non-retirees are not doing some of the basic steps to plan for retirement.Read more >
Employees Would Like Companies to Become More Involved in Providing Retirement Security
Fifty-eight percent would rather have their employer provide them a set retirement paycheck for life than to invest on their own, MetLife found.Read more >
Pensions Keep Funded Status Increase for the Year So Far
Despite two months in a row of funded status losses, most firms that track pension funding find the average funded status is still up for the year.Read more >
Voluntary Benefits Increasingly Offered to Help Employees With Financial Issues
Education benefits that address rising student loan debts and parents saving for children’s future college cost are financial well-being benefits that are gaining traction.Read more >
Participants Will Need Support to Understand Lifetime Income Projections
Data and Research
DB Plans Retain Cost Advantage Over DC Plans
Milliman Accused of Failing to Prune Bad Investments From 401(k)
Products, Deals and People
Fiduciary Governance Group Launched by Stradley Ronon
The fiduciary governance group is designed to counsel investment committees and service providers, with a focus on avoiding and responding to fiduciary breach litigation, among other topics.Read more >
Economic Events

The Producer Price Index for final demand advanced 0.3% in March, as prices for both final demand services and final demand goods rose 0.3%, according to the Bureau of Labor Statistics. The final demand index increased 3.0% for the 12 months ended in March.

February 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 $495.9 billion, up 1.0% from the revised January level and up 6.8% from the February 2017 level, the Census Bureau reported. The December 2017 to January 2018 percent change was revised from the preliminary estimate of down 1.1% to down 1.5%.

Sponsored message from Vanguard
Snapshots of TDF performance miss the big pictureWhen evaluating TDF performance, use a holistic approach to look beyond a single point in time.Read more >
Market Mirror

Tuesday, the Dow gained 428.90 points (1.79%) to finish at 24,408.00, the NASDAQ closed 143.96 points (2.07%) higher at 7,094.30, and the S&P 500 increased 43.71 points (1.67%) to 2.656.87. The Russell 2000 was up 28.97 points (1.91%) at 1,543.43, and the Wilshire 5000 climbed 461.83 points (1.70%) to 27,570.76.

The price of the 10-year Treasury note decreased 4/32, bringing its yield up to 2.795%. The price of the 30-year Treasury bond was down 2/32, increasing its yield to 3.018%.

Ask the Experts
In-Service Distributions for Participants in Phased Retirement Program
“Can participants younger than age 59 ½ who are part of a phased retirement program take an in-service distribution without being subject to the 10% early withdrawal penalty?”Read more >
Advisers See a Place for Both Active and Passive Investing
Advisers believe that both active and passive investing play a vital role, according to Cerulli. More than 80% believe that passive investments can reduce fees and that active managers are ideal for certain asset classes. “Approximately 75% of advisers agree that active and passive investments complement each other,” says Brendan Powers, senior analyst at Cerulli. “Cerulli argues that the debate of active or passive has shifted to active and passive, with more focus on how to best use both as tools to build more efficient client portfolios.Read more >
Propriety TDFs Continue to Dominate QDIA Market
Despite an ongoing plan sponsor investment unbundling trend, the majority of target-date fund (TDF) providers continue to construct their TDF portfolios using proprietary funds as the underlying investments, Mercer reports.Read more >
Small Talk
GOBankingRates analyzed all 50 states on four factors to see which was best for retirees to live in to stretch their retirement income. The results showed Delaware is the best state. Which was the worst?Read more >

ON THIS DATE: In 1783, after receiving a copy of the provisional treaty on March 13, the U.S. Congress proclaimed a formal end to hostilities with Great Britain. In 1876, the Benevolent and Protective Order of Elks was organized. In 1898, President William McKinley asked Congress for a declaration of war with Spain. In 1899, the treaty ending the Spanish-American War was declared in effect. In 1901, construction on the Empire State Building was completed. In 1947, Jackie Robinson became the first black player in major-league history. He played in an exhibition game for the Brooklyn Dodgers. In 1948, the discovery of the Dead Sea Scrolls was announced in a general press release. In 1951, President Harry Truman fired General Douglas MacArthur as head of United Nations forces in Korea. In 1968, President Lyndon Johnson signed the 1968 Civil Rights Act. In 1970, Apollo 13 blasted off on a mission to the moon that was disrupted when an explosion crippled the spacecraft. In 1986, in Groton, Connecticut, the submarine Nautilus exhibit opened to the public.

“Our entire life consists ultimately in accepting ourselves as we are.”—Jean Anouilh, French dramatist

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Editorial: Alison Cooke Mintzer


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