Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
April 24th, 2018
Benefits & Administration
Current DC Plan Participants Considering Income Products for Retirement
One in four employees with a defined contribution (DC) plan intend to leave at least some money in their plans, but two in 10 say they will use plan assets to purchase a product that provides guaranteed lifetime income, far more than the 7% of retirees who did this, according to the Employee Benefit Research Institute’s (EBRI) 28th annual Retirement Confidence Survey (RCS). Eight in 10 DC plan participants are very or somewhat interested in an in-plan investment option that would guarantee monthly income for life in retirement, and the same number express interest in taking money out of their plan at retirement and moving it to a financial product that would guarantee them monthly income for life. Read more >
Employers Adopting More Aggressive Health Plan and Wellness Program Features
As the need for enhanced wellbeing programs grows, a WorldatWork study finds employers adopting aggressive plan designs by adding ranges of modern features—from telemedicine and stress reduction, to weight management and health advocacy. Read more >
Health Care Expenses Shaking Retirees’ Confidence
Retirees’ confidence in their ability to live comfortably in retirement remains higher than employees’ confidence, with 32% of retirees very confident and 44% somewhat confident, according the Employee Benefit Research Institute’s (EBRI) 28th annual Retirement Confidence Survey (RCS). However, retirees are less likely than last year to feel confident in their ability to handle basic expenses and feel less confident in their ability to handle medical expenses. More than four in 10 retirees report that their health care expenses in retirement are higher than they expected and one-quarter say long-term care costs have been higher. The RCS found that being healthy increases retirement confidence. In addition, two-thirds of retirees report that converting their assets into income is a relatively easy task for them. Read more >
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Economic Events

Existing-home sales grew for the second consecutive month in March, but lagging inventory levels and affordability constraints kept sales activity below year ago levels, according to the National Association of Realtors. Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, rose 1.1% to a seasonally adjusted annual rate of 5.60 million in March from 5.54 million in February. Despite last month’s increase, sales are still 1.2% below a year ago.

Market Mirror

Yesterday, the Dow was down 14.25 points (0.06%) at 24,448.69, the NASDAQ closed 17.52 points (0.25%) lower at 7,128.60, and the S&P 500 was virtually unchanged at 2,670.29. The Russell 2000 decreased 2.00 points (0.13%) to 1,562.12, and the Wilshire 5000 was up 11.80 points (0.04%) at 27,787.21.

 

The price of the 10-year Treasury note was down 3/32, increasing its yield to 2.974%. The price of the 10-year Treasury bond was up 2/32, decreasing its yield to 3.145%.

Sponsored message from MetLife
Many employees are at risk of overspending their retirement savings
1 in 5 retirement plan participants spend their retirement lump sum in 5 1/2 years, on average, according to MetLife and The Harris Poll. Help them manage their retirement savings by providing a guaranteed income benefit. Read more >
Compliance
Investment Firms Sued Over Kentucky Retirement Systems Hedge Fund Investments
The lawsuit alleges investment firms sold investments to KRS that were “extremely high-risk” and produced “excessive fees, poor returns and ultimately, losses.” Read more >
PBGC Modifies Forms and Instructions for Distress Terminations
Plan sponsors now have the opportunity to contact the agency for a pre-filing consultation to discuss the filing process and ensure the filing of a distress termination is appropriate given the sponsor’s specific circumstances. Read more >
Small Talk

ON THIS DATE: In 1800, the Library of Congress was established with a $5,000 allocation. In 1833, a patent was granted for first soda fountain. In 1889, the Edison General Electric Company was organized. In 1897, William Price was named the first White House news reporter. In 1961, Sandy Koufax of the Los Angeles Dodgers struck out 18 batters becoming the first major-league pitcher to do so on two different occasions. In 1997, the U.S. Senate ratified the Chemical Weapons Convention. The global treaty banned the development, production, storage and use of chemical weapons.

TRIVIAL PURSUITS: When were proms introduced in high schools? Read more >
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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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

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