Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
April 5th, 2017
Benefits & Administration
With the appeal of the gig economy posing a real threat to employers, a new study by MetLife finds that effective and customizable benefits programs remain essential to employee retention.Read more >
Reverse Mortgages As a Source of Retirement Income
Reverse mortgages make sense for retirees who wish to remain in their home, who need some additional income and who are not concerned about leaving the equity in their home to their heirs, says Wade Pfau, professor of retirement income at The American College of Financial Services in Bryn Mawr, Pennsylvania. Who qualifies, and how much can be borrowed?Read more >
2021 Recordkeeping Survey
2021 Plan Sponsor of the Year
Most DB Plan Sponsors Seeking an Exit
TRIVIAL PURSUITS: What do the M’s stand for in M&Ms?
Mismanagement of ERISA Accounts
Americans Lack Awareness of HSA Benefits
Fidelity Investments finds misconceptions about health savings accounts and their use as retirement-savings vehicles.Read more >
DB Plan Sponsors Overpaying PBGC Premiums
Defined benefit (DB) plan sponsors paid $145 million in Pension Benefit Guaranty Corporation (PBGC) premiums in 2015 alone that could have been avoided, according to a paper from October Three. The report contends that not optimizing their contribution recording and timing caused plan sponsors to overpay PBGC premiums.Read more >
Barry’s Pickings Online
Barry’s Pickings Online: Roth-only?
Michael Barry, president of the Plan Advisory Services Group, shares his thoughts about lawmakers’ consideration of making the current pre-tax retirement savings system an after-tax system.Read more >
Products, Deals and People
As interest in self-funded health plans increases, Maestro Health has released an mBENEFITS mobile app and a My Benefits web portal to meet the needs of self-funded health benefits management among employers and employees.Read more >
Economic Events

New orders for manufactured durable goods in February, up two consecutive months, increased $4.2 billion or 1.8% to $236.0 billion, up from the previously published 1.7% increase, the Census Bureau reported. This followed a 2.4% January increase. Transportation equipment, also up two consecutive months, led the increase, $3.4 billion or 4.4% to $80.5 billion. New orders for manufactured nondurable goods increased $0.6 billion or 0.2% to $240.5 billion.

Market Mirror

Tuesday, the Dow closed 39.03 points (0.19%) higher at 20,689.24, the NASDAQ was up 3.93 points (0.07%) at 5,898.61, and the S&P 500 increased by 1.28 (0.05%) to 2,360.12. The Russell 2000 decreased by 1.51 (0.11%) to 1,368.15, and the Wilshire 5000 increased 15.40 points (0.06%) to 24,577.89.

On the NYSE, 3.1 billion shares traded, with a nearly even split between advancing issues and declining issues. On the NASDAQ, 2.9 billion shares changed hands, with a 1.4 to 1 ratio of decliners to advancers.

The price of the 10-year Treasury note was down 10/32, increasing its yield to 2.359%. The price of the 30-year Treasury bond decreased 27/32, bringing its yield up to 2.996%.

Intel Wins Suit Over Use of Alternative Investments
A federal district court judge has found that claims against Intel Corporation’s Investment Policy Committee for its retirement plans is time-barred under the Employee Retirement Income Security Act’s (ERISA)’s three-year statute of limitations. He found the plaintiff in the case had actual knowledge of the facts comprising his claims more than three years before he filed suit.
Ask the Experts
What Are 410(b) and 401(a)(4) Tests?
“We recently established an ERISA 403(b) plan with both a base (discretionary) and a matching contribution at a newly created tax-exempt entity at which I work.In addition to the Average Contribution Percentage (ACP) Test about which I was aware through a prior employer, our recordkeeper says we need to pass 410(b) coverage and 401(a)(4) general nondiscrimination testing. Can the Experts provide a basic explanation of these tests?”Read more >
Small Talk
The majority of CFOs surveyed said a sense of humor is important in the workplace.Read more >

ON THIS DATE: In 1614, American Indian Pocahontas married English colonist John Rolfe in Virginia. In 1621, the Mayflower sailed from Plymouth, Massachusetts, on a return trip to England. In 1792, U.S. President George Washington cast the first presidential veto. The measure was for apportioning representatives among the states. In 1923, Firestone Tire and Rubber Company began the first regular production of balloon tires. In 1955, Winston Churchill resigned as British prime minister. In 1984, Kareem Abdul-Jabbar (Los Angeles Lakers) became the all-time NBA regular season scoring leader when he broke Wilt Chamberlain’s record of 31,419 career points.


WEDNESDAY WISDOM: “Be not simply good—be good for something.”—Henry David Thoreau

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Editorial: Alison Cooke Mintzer


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