Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
April 4th, 2018
From the Magazine
Tactical Latitude
Traditionally, the asset-allocation strategy for a target-date fund (TDF) has been rigid—relying on the fund’s predetermined glide path to dictate how its asset allocation changes over time to or through its target date. The glide path structure is intended to automatically, progressively, reduce the riskiness of the portfolio, shifting to more bonds and income-producing assets and away from volatile areas of the stock market as the investor approaches retirement. This practice proved challenging for some investors to stomach during the 2008 and 2009 recession, and some managers began to consider how to adjust their portfolios to meet such market conditions.Read more >
Court Moves Forward Claims in Yale 403(b) Plan Case
In a case challenging recordkeeping and investment fees for the Yale University 403(b) plan, U.S. District Judge Alvin W. Thompson of the U.S. District Court for the District of Connecticut moved forward most claims of violation of duty of prudence under the Employee Retirement Income Security Act (ERISA). The lawsuit alleges various ways Yale defendants acted imprudently with regard to recordkeeping and investment fees for the plan. However, the judge dismissed all duty of loyalty claims, saying the plaintiffs offer no plausible theory in any of the counts to suggest that the defendants’ decisions favored themselves or a third party at the expense of the plan participants.Read more >
EARN Act Clears Senate Finance Committee
TRIVIAL PURSUITS: How Many States Are in More Than One Time Zone?
2021 Recordkeeping Survey
TRIVIAL PURSUITS: Meaning and Origin of the Idiom “Watershed Moment?”
2022 Best in Class 401(k) Plans
PBGC Issues Guidance Designed to Keep Multiemployer Plans Solvent Longer
Regarding guidance to assist multiemployer pension plans that request PBGC review of alternative plan rules for satisfying employer withdrawal liability, the agency said for example, some proposals include incentives for employers to remain in the plan by providing discounted withdrawal liability that is conditioned on continued employer participation for a specified period of years.Read more >
Market Mirror

Tuesday, the Dow climbed 389.17 points (1.65%) to 24,033.36, the NASDAQ was up 71.16 points (1.04%) at 6,941.28, and the S&P 500 closed 32.56 points (1.26%) higher at 2,614.44. The Russell 2000 gained 19.62 points (1.31%) to finish at 1,512.15, and the Wilshire 5000 increased 322.73 points (1.20%) to 27,117.04.

The price of the 10-year Treasury note decreased 14/32, bringing its yield up to 2.781%. The price of the 30-year Treasury bond fell 32/32, increasing its yield to 3.016%.

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Products, Deals and People
Employers May Offer Retirement Income Product From Prudential
Prudential has introduced Guaranteed Income for Life (GIFT), an online guaranteed lifetime income product that it is distributing through Prudential Group Insurance’s worksite customer relationships. GIFT is a voluntary deferred income annuity, and while not an employer-provided benefit, employers can allow Prudential to make GIFT available to their employees and collect payroll deductions, if they choose.Read more >
Ask the Experts
What or Who is a ‘Named Fiduciary’?
“Recently the recordkeeper who is taking over administration of our Employee Retirement Income Security Act (ERISA) 403(b) plan from a prior recordkeeper asked for the identity of the plan’s “named fiduciary.” Though I am well familiar with who the plan’s fiduciaries are, I am unfamiliar with the term “named fiduciary.” Can the Experts clarify?”Read more >
Small Talk
According to a new survey from staffing firm Accountemps, more than four in 10 workers (45%) admitted to crying at work. About the same proportion of CFOs (44%) said shedding tears is acceptable as long as it’s not an everyday occurrence. Thirty-eight percent of employees said the same. The survey also found more than half (52%) of workers have lost their temper at work. Read more >

ON THIS DATE: In 1812, the territory of Orleans became the 18th U.S. state and would become known as Louisiana. In 1818, a plan was passed by Congress that the U.S. flag would have 13 red and white stripes and 20 stars and that a new star would be added for the each new state. In 1841, President William Henry Harrison, at the age of 68, became the first president to die in office. He had been sworn in only a month before he died of pneumonia. In 1862, the Battle of Yorktown began as Union General George B. McClellan closed in on Richmond, Virginia. In 1887, Susanna M. Salter became mayor of Argonia, Kansas, making her the first woman mayor in the U.S. In 1917, the U.S. Senate voted 90-6 to enter World War I on the Allied side. In 1932, after five years of research, professor C.G. King, of the University of Pittsburgh, isolated vitamin C. In 1945, during World War II, U.S. forces liberated the Nazi death camp Ohrdruf in Germany. In 1949, twelve nations signed a treaty to create The North Atlantic Treaty Organization (NATO). In 1968, Martin Luther King Jr. was assassinated at the age of 39. In 1973, in New York, the original World Trade Center twin towers opened. At the time they were the tallest buildings in the world. In 1974, Hank Aaron tied Babe Ruth’s major league baseball home-run record with 714.

“It’s not what happens to you, but how you react to it that matters.”—Epictetus, Greek Stoic philosopher

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Editorial: Alison Cooke Mintzer


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