| Benefits & Administration | Health Care Reform Is Transforming Employer Benefits | As provisions of the Patient Protection and
Affordable Care Act (ACA) have rolled out over the past couple of years, many
companies are making substantial changes to their health benefit offerings,
according to Paul Goldbeck, senior consultant at Towers Watson. Goldbeck told
attendees of the 44th Annual Retirement & Benefits Management Seminar,
hosted by the Darla Moore School of Business at the University of South
Carolina, and co-sponsored by PLANSPONSOR, that the individual mandate and
provision for adult children has resulted in additional employees signing up
for employer plans, and new taxes and fees have also increased costs for
employers. In addition, the ACA added administrative complexity with new
eligibility and reporting requirements as well as rules to coordinate out of
pocket maximums among pharmacy benefit and health plans. “All of this leads
employers to consider whether they want to take a different approach to health
benefits,” Goldbeck said.Read more > | Many Plan Sponsors Unaware of Fiduciary Responsibilities | In the past three years, there has been a
decline in retirement plan sponsors’ awareness of their fiduciary
responsibilities, according to research from Alliance Bernstein. More than
one-third (37%) of sponsors aren’t aware that they are fiduciaries, up from 30%
in 2011.Read more > | Providers Can Help Improve Retirement Plans | Speakers at the 44th Annual Retirement &
Benefits Management Seminar, hosted by the Darla Moore School of Business at
the University of South Carolina, and co-sponsored by PLANSPONSOR discussed
capabilities retirement plan providers offer for plan design and participant
outcome issues. W. Robert Phillips, senior vice president, Consultant
Relations, BNY Mellon Investment Management, said providers are helping plan
sponsors with trends such as indexation, moving to custom target-date funds (TDFs),
and white-labeling investments. He noted that a lot of fee compression activity
is concentrated on how to get a cheaper investment menu. One way is through
using indexed funds; another way is to use different share classes. But,
Phillips warned, plan sponsors should be careful of what the consequences are;
choosing investments just to lower fees may not be in the best interest of
participants.Read more > |
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| Products, Deals & People | Financial software and platform provider Sapiens
International Corporation announced the expansion of its defined contribution
recordkeeping platform, which was first introduced to the market in 2014. The
eligibility component of the Sapiens Retirement platform supports a variety of
complex eligibility rules that can be organized by plan providers, are executed
automatically and include techniques for processing exceptions.Read more > | Strategic Insight Launches Liquid Alternatives Reporting | Investment fund research and analytics firm
Strategic Insight (SI), an Asset International Company, is adding a new liquid
alternatives research practice area, reflecting the growing importance of the
asset class for institutional investors. Within this practice area, SI will
publish a quarterly overview of the liquid alternative investment marketplace,
along with periodic topical studies (known as “Alternative Insights”) and
webcasts devoted to this growing area of the investment fund market.Read more > | | Market Mirror | Yesterday, the
Dow was down 42.17 points (0.23%) at 18,037.97, the NASDAQ lost 31.84 points
(0.63%) to finish at 5,060.25, and the S&P 500 decreased 8.77 points
(0.41%) to 2,108.92. The Russell 2000 fell 14.83 points (1.17%) to 1,252.70,
and the Wilshire 5000 closed 115.18 points (0.51%) lower at 22,316.00.
On the NYSE,
3.2 billion shares traded, with 1.8 declining issues for every advancing issue.
On the NASDAQ, 2.8 billion shares changed hands, with a 2.4 to 1 ratio of
decliners to advancers.
The price of the 10-year Treasury note decreased 5/32,
bringing its yield up to 1.927%. The price of the 30-year Treasury bond slipped
1/32, increasing its yield to 2.614%.
| | Investing | March totals for net new investments in stock
and bond funds dipped to $49.4 billion, down from the previous month’s $56.7
billion, according to data from Strategic Insight, an Asset International
Company. Net intake to equity products rose to $40 billion from February’s
$32.2 billion, driven by a $38.3 billion inflow to international equity.Read more > | Automated Investments Provide Assurance to Participants | Providing a cost-efficient, customized approach,
automated investment solutions act as a powerful mechanism for sponsors, says
Jeremy Hersch, vice president, head of asset allocation services, Transamerica
Retirement Advisors Inc. While
retirement investing decisions can be complex for individuals, automated solutions
make it easier to implement a diversified combination of the plan’s
investments. These investments are automatically rebalanced, reducing the
amount of time and effort on behalf of the participant. Additionally, Hersch
says this can help overcome the inertia that tends to prevent people from doing
things like rebalancing and reducing risk over time. Transamerica conducted a
study that found the median return for participants in automated investing
solutions was higher over time that for participants who were do-it-yourself
investors.Read more > | | Small Talk | ON
THIS DATE: In 1758,
future U.S. Senator and President James Monroe was born. In 1897, the Chickasaw and Choctaw, two of
the Five Civilized Tribes, became the first to agree to abolish tribal
government and communal ownership of land. In 1932, the yellow fever vaccine for humans was announced. In 1967, boxing champion Muhammad Ali
refusesd to be inducted into the U.S. Army and was immediately stripped of his
heavyweight title. Ali, a Muslim, cited religious reasons for his decision to
forgo military service. In 1992, the
U.S. Agriculture Department unveiled a pyramid-shaped recommended-diet chart. In
2000, Jay Leno received a star on
the Hollywood Walk of Fame.
TUESDAY
TRIVIA: Dogs will yawn to tell their owners the
activity the owner is engaged in is not what the dog wants to do.
| TRIVIAL PURSUITS:
From where did the term ‘slush fund’ originate?Read more > | Share the good news with a friend! Pass the Dash along – and tell your
friends/associates they can sign up for their own copy.Read more > | News from PLANSPONSOR.com
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