Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
April 6th, 2016
Final Fiduciary Rule Includes Requested Changes
After the better part of a decade in the making the new fiduciary rule from the Department of Labor has finally arrived, and on first review it appears to look a lot like the version proposed in the Spring of 2015, albeit with some important softening around the sharpest edges. Labor Secretary Thomas Perez noted changes in the rule that reflect industry concerns.Read more >
IRS Offers New Correction for Missed Plan Restatements
April 30 is the deadline for employers using pre-approved retirement plan documents to sign an updated version. The Internal Revenue Service (IRS) is offering an alternative correction method for plans that miss the deadline.Read more >
TRIVIAL PURSUITS: What do the M’s stand for in M&Ms?
2022 Recordkeeping Survey
TRIVIAL PURSUITS: Meaning and Origin of the Idiom “Watershed Moment?”
Maximum Benefit and Contribution Limits Table 2023
TRIVIAL PURSUITS: How Many States Are in More Than One Time Zone?
Benefits & Administration
A TIAA executive says without more aggressive plan designs, state-run plans will struggle.Read more >
Products, Deals and People
Principal Financial Group has launched My PERLS 2.0, short for “My Principal ESOP Repurchase Liability Solution,” to aid plan sponsors in planning for the future through advanced analytics and an easy interface.Read more >
DC Optimization Can Help with Workforce Management
Scott Boyd, SVP, National Platform Distribution and Relationships and head of Healthcare Solutions for Prudential Retirement, tells PLANSPONSOR it costs employers an estimated $8,500 per year per person unable to retire, including increased health care and benefits costs and lost productivity. In addition, a lack of mobility for middle managers may cause them to leave for competitors, and it could cost anywhere from 100% to 300% of salary to replace them. “The implicit costs can be bigger than what plan sponsors spend on their retirement plans,” Boyd says. Prudential offers a service called DC Optimization, which is a process that provides plan sponsors with information from defined contribution (DC) actuaries to help them design an efficient retirement plan that supports their organizations’ business objectives—whether it’s containing overall business costs, increasing employee participation in a retirement plan or attracting and retaining the right talent.Read more >
Market Mirror

Stocks lost ground on Wall Street as investors fretted about more dire predictions about the global economy, according to the Associated Press. The Dow lost 133.68 points (0.75%) to finish at 17,603.32, the NASDAQ closed 47.86 points (0.98%) lower at 4,843.93, and the S&P 500 decreased 20.94 points (1.01%) to 2,045.19. The Russell 2000 was down 12.62 points (1.14%) at 1,095.85, and the Wilshire 5000 fell 186.18 points (0.88%) to 21,036.73.

On the NYSE, 3.2 billion shares traded, and on the NASDAQ, 2.7 billion shares changed hands, with declining issues outnumbering advancing issues more than 2 to 1 on both exchanges.

The price of the 10-year Treasury note increased 12/32, bringing its yield down to 1.721%. The price of the 30-year Treasury bond climbed 1 3/32, decreasing its yield to 2.544%.
Ask the Experts
Ask the Experts – Why Sponsor So Many Retirement Plans?
“I just started to work for a mid-sized health care organization, and it turns out that they have 10 different plans with 10 different plan documents! Is there any reason in the world a not-so-large organization would be administering 10 separate plans? Just the 5500 filing process—all of the plans are subject to the Employee Retirement Income Security Act (ERISA)—which I am commencing now, is exhausting!”Read more >
Active Management Still Favored Investment Approach
Active management is still the favored investment approach for most major asset classes and target-date retirement strategies, according to the 10th annual PIMCO Defined Contribution Consulting Support and Trends Survey.Read more >
Small Talk
Asked by OfficeTeam how often their companies act on information gathered during exit interviews with departing employees, 28% of human resources (HR) managers said “very often,” while 35% said “somewhat often.” When asked how they follow up on information gleaned from these meetings, 19% review employee salaries, and 5% review employee benefits.Read more >

ON THIS DATE: In 1607, an expedition led by Captain Christopher Newport arrived at the Spanish colony of Puerto Rico for supplies before continuing on its journey. On May 14, the crew went ashore and founded Jamestown, Virginia, as the first permanent English colony in America. In 1830, Joseph Smith and five others organized the Mormon Church in western New York. In 1896, the first modern Olympic Games began in Athens, Greece. In 1917, the U.S. Congress approved a declaration of war on Germany and entered World War I on the Allied side. 1965 – U.S. President Lyndon B. Johnson authorized the use of ground troops in combat operations in Vietnam. In 1987, Sugar Ray Leonard took the middleweight title from Marvin Hagler.


WEDNESDAY WISDOM: “After all is said and done, more is said than done.”—Aesop, ancient Greek storyteller
Share the good news with a friend! Pass the NewsDash along—and tell your friends/associates they can sign up for their own copy.Read more >

Editorial: Alison Cooke Mintzer


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