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Insight on Plan Design & Investment Strategy Every Weekday
Balancing Fiduciary Duty With ESG Demand
Balancing Fiduciary Duty With ESG Demand
As desire for sustainable investments increases, retirement plan sponsors are still cautious about offering ESG funds while regulatory guidance is stalled.
Ask the Experts
Did the In-Service Distribution Age Change for 457(b) Plans?
“I work with a private 501(c)(3) health care organization that sponsors both a 403(b) and a 457(b) plan. We permit in-service distributions in our 403(b) at age 59.5, and would love to allow such distributions in our 457(b) plan as well for administrative and communication consistency purposes, but have always been told that the law that applies to 457(b) would not allow that. However, I recently read an article indicating that a SECURE Act-related provision would permit in-service distributions in 457(b) plans at age 59.5. Is that correct?”
Most Read

2021 Health Savings Account Survey

2020 Recordkeeping Survey
403(b) Plan Sponsor Sued Over Excessive Fees and Underperforming Investments
Economic Events
The Conference Board Consumer Confidence Index rose sharply again in April, following a substantial gain in March. The Index now stands at 121.7 (1985=100), up from 109.0 in March. The Present Situation Index—based on consumers’ assessment of current business and labor market conditions—soared from 110.1 to 139.6. The Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions—rose moderately, from 108.3 last month to 109.8 in April.
Market Mirror
Tuesday, the Dow was up 3.36 points (0.01%) at 33,984.93, the Nasdaq closed 48.56 points (0.34%) lower at 14,090.22, and the S&P 500 was virtually unchanged at 4,186.72. The Russell 2000 increased 3.26 points (0.14%) to 2,301.27, and the Wilshire 5000 was virtually unchanged at 44,049.36.

The price of the 10-year Treasury note was down 4/32, increasing its yield to 1.623%. The price of the 30-year Treasury bond fell 1 1/32, bringing its yield up to 2.298%.
Aon, Alight Win Judgment in Hospital PRT Lawsuit
A federal judge found Aon Hewitt acted prudently, after hearing testimony about the firm’s investment actions and contractual obligations.
Deals and People
Ascensus Leader Discusses New Private Equity Backing
Ascensus CEO David Musto says the deal is about continuing to invest in new capabilities, technology and solutions.
Small Talk
ON THIS DATE: In 1789, a mutiny on the British ship Bounty took place when a rebel crew took the ship and set sail to Pitcairn Island. The mutineers left Captain W. Bligh and 18 sailors adrift. In 1914, W.H. Carrier patented the design of his air conditioner. In 1952, the U.S. occupation of Japan officially ended when a treaty with the U.S. and 47 other countries went into effect. In 1967, boxing champion Muhammad Ali refused to be inducted into the U.S. Army and was stripped of his heavyweight title. Ali, a Muslim, cited religious reasons for his decision to forgo military service. In 1985, the largest sand castle in the world was completed near St. Petersburg, Florida. It was four stories tall. 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.
WEDNESDAY WISDOM: “Nature does not hurry, yet everything is accomplished.”—Lao Tzu, Chinese philosopher
Industry Intel Roundup—Featured Webcasts
PLANSPONSOR is pleased to present the next edition of our Industry Intelligence roundup. This week, we are featuring webcasts sponsored by experienced providers in the industry. The content was created to educate, inform and offer ideas for plan sponsors regarding plan design, investing, administration and compliance.
Recent Trends in Financial Wellness, Retirement Readiness and Guaranteed Lifetime Income
PLANSPONSOR 2021 Plan Progress Series: Lessons From Litigation
There is no shortage of litigation filed against retirement plan sponsors. It seems that most lawsuits focus on plan administration and investment fees, but a variety of other charges have been filed. While plan sponsors’ first priority is the best interest of participants and not how to avoid legislation, no one wants to be sued. With a large number of cases resulting in settlements, the courts haven’t offered much input on the issues, but there are still lessons to be learned.
Are your glide paths diversified enough for today’s evolving markets?
As plan participants head toward retirement, a target-date fund’s stock allocation decreases while its exposure to bonds goes up. But this is only part of the story for glide paths. With ever-changing markets, sub-asset classes and alternatives can help reduce correlations and thus mitigate exposure to broad market drawdowns. Come hear about the importance of a diversified glide path and how today’s macroeconomic events are changing the investing landscape and creating the need for glide paths with broader asset allocation.
PLANSPONSOR 2021 Plan Progress Series: Evaluating Guaranteed Income Products
The Setting Every Community Up for Retirement Enhancement (SECURE) Act provided a fiduciary safe harbor for selecting an insurer/vendor of guaranteed retirement income contracts and addressed the portability issue for offering in-plan guaranteed income products by permitting participants to transfer annuities no longer authorized to be held as investment options under a defined contribution (DC) plan. Still, plan sponsors might not understand product choices or how to address the huge need for participants to have guaranteed retirement income through DC plan design.
A Diversified Income Strategy: Why It’s Important For Your Employees
This webcast discusses the importance of income diversification and how to incorporate into retirement income strategies. It highlights the four key retirement risks and lifetime income sources that can help fortify a diversified retirement income strategy for participants. We will present insights from our latest 2020 Retirement Insights Survey along with research from Morningstar to show how “income diversification” on average can provide retirees with 20% more certainty-equivalent income in retirement. These insights strongly suggest that in-plan annuities should be considered as part of a retirement income strategy.
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