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PLANSPONSOR NEWSDASH LOGO April 7th, 2021
Insight on Plan Design & Investment Strategy Every Weekday
Compliance
Settlement Details Published in Jander v. IBM
Settlement Details Published in Jander v. IBM
Prior to settlement, the long-running stock drop lawsuit received multiple appellate court rulings and consideration from the U.S. Supreme Court.
Ask the Experts
QBAD Distribution Limits When One Spouse Doesn’t Participate in a Retirement Plan
“Our 403(b) plan allows for qualified birth or adoption (QBAD) distributions consistent with the SECURE Act’s amendments to Internal Revenue Code section 72(t)(2). Recently, we had a plan participant request a QBAD for $10,000 related to the adoption of a child, but the plan participant’s spouse is NOT a participant in our 403(b) plan. We realize that under the SECURE Act, each spouse, individually, is eligible for a $5,000 QBAD from an eligible retirement plan, but can the plan participant take a single $10,000 QBAD from our 403(b) plan to cover both spouses? The spouse does not have a retirement plan or IRA from which to take a QBAD, which is why the participant is requesting the $10,000 distribution.”
Most Read
Compliance
DOL Releases Its First Cybersecurity Guidance

2020 Recordkeeping Survey
Investing
Evaluating ‘To’ vs. ‘Through’ Glide Paths
Market Mirror
Tuesday, the Dow closed 96.95 points (0.29%) lower at 33,430.24, the Nasdaq was down 7.21 points (0.05%) at 13,698.38, and the S&P 500 decreased 3.97 points (0.10%) to 4,073.94. The Russell 2000 climbed 63.36 points (2.89%) to 2,259.15, and the Wilshire 5000 was up 9.84 points (0.02%) at 42,815.64.

The price of the 10-year Treasury note increased 26/32, bringing its yield down to 1.654%. The price of the 30-year Treasury bond climbed 28/32, decreasing its yield to 2.320%.
Data and Research
Health Care Plan Selection Can Hamper Retirement Savings
Voya finds that HDHPs paired with HSAs are often a more optimal choice for participants than PPOs.
HSAs Continue to Grow in Popularity
A Devenir report finds more employees are also investing their HSA assets.
Small Talk
ON THIS DATE: In 1798, the territory of Mississippi was organized. In 1927, the first long-distance TV transmission was sent from Washington, D.C. to New York City. The audience saw an image of Commerce Secretary Herbert Hoover. In 1933, prohibition ended in the United States. In 1940, Booker T. Washington became the first Black person to be pictured on a U.S. postage stamp. In 1948, the musical “South Pacific” by Rogers and Hammerstein debuted on Broadway. In 1948, the United Nations’ World Health Organization began operations. In 1953, IBM unveiled the IBM 701 Electronic Data Processing Machine. It was IBM’s first commercially available scientific computer. In 1963, at the age of 23, Jack Nicklaus became the youngest golfer to win the Green Jacket at the Masters Tournament. In 1970, the legendary actor John Wayne won his first—and only—acting Academy Award, for his role in the movie “True Grit.” In 1980, the U.S. broke diplomatic relations with Iran and imposed economic sanctions in response to the taking of hostages on November 4, 1979. In 1983, Specialist Story Musgrave and Don Peterson made the first Space Shuttle spacewalk. In 2000, President Bill Clinton signed the Senior Citizens Freedom to Work Act of 2000. The bill reversed a Depression-era law and allows senior citizens to earn money without losing Social Security retirement benefits.
WEDNESDAY WISDOM: “A bank is a place that will lend you money if you can prove that you don’t need it.”—Bob Hope, comedian and actor
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.
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.
SPONSORED BY: TIAA
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.
Redefining financial well-being: What employees need most in a post-pandemic world
The pandemic didn’t cause America’s retirement crisis—but it did shine a spotlight on some of its deepest cracks. Chief among them: the precariousness of people’s short- and long-term financial security. As we start to envision a post-COVID world, all eyes are on recovery. For employers, this is prompting a shift in focus from immediate, relief-oriented benefits to ones that address barriers to holistic financial well-being. This panel will explore: Two key barriers—emergency savings and retirement spending. Steps employers can take now to bolster their employees’ outcomes of tomorrow. Now is the time to redefine financial well-being to align with what employees will need most in a post-pandemic world.
PLANSPONSOR 2021 Plan Progress Series: Considering ESG Factors in Investment Selection
For several presidential administrations now, there has been some back and forth about the place for environmental, social and governance (ESG) investing in retirement plans. Last year, the DOL proposed controversial regulations seeming to suppress the use of ESG investments in retirement plans; however, when final regulations came out, the DOL’s stance was softened.
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