Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
April 8th, 2015
Benefits & Administration
Millennials Expect to Work Past Retirement Age
Nearly three-quarters (73%) of Millennials expect to work past age 65, acknowledging that safety nets will not be there for them in old age, and Social Security will not take care of their needs. While less than half (38%) of Americans age 35 and older have set financial goals, Millennials prove to be more pragmatic. A study by Northwestern Mutual reveals 53% of Millennials have set financial goals, and another 65% classify themselves as more inclined to save than spend.  Read more >
Global DC Plans Highlight Efficiency Trend
A survey of Vanguard retirement plan clients operating in three or more countries shows some trends appear to be playing out the same internationally as in the U.S., including the sweeping transition from a predominantly defined benefit (DB) to a predominantly defined contribution (DC) approach to retirement benefits. International plan sponsors seem to be even harder pressed to find sufficient time and resources to manage legacy DB offerings while ensuring newer DC plans offer enough value for participants.Read more >
Ask the Experts
“Since our University is currently on spring break, I thought that I would take the time to ask the Experts a bit of a trivia question. Is there a 403(b) plan that is generally recognized as the oldest 403(b) plan in the country? Our plan dates from the early 1960s, and I was wondering how it stacks up in terms of longevity.”Read more >
Market Mirror
Tuesday, the Dow was down 5.43 points (0.03%) at 17,875.42, the NASDAQ decreased 7.08 points (0.14%) to 4,910.23, and the S&P 500 closed 4.29 points (0.21%) lower at 2,076.33. The Russell 2000 fell 7.18 points (0.57%) to 1,253.36, and the Wilshire 5000 lost 56.59 points (0.26%) to finish at 22,026.57.   On the NYSE, 3.2 billion shares changed hands, and on the NASDAQ, 2.8 billion shares traded, with a slight lead for decliners on both exchanges.   The price of the 10-year Treasury note was up 3/32, bringing its yield down to 1.887%. The price of the 30-year Treasury bond increased 21/32, decreasing its yield to 2.522%.
Bills to Nullify the Retirement Security Rule Proposed in Congress
Dealing with Stress, Burnout in the HR, Benefits Department
Deals and People
BlackRock’s Retirement Head Ackerley Moving to Adviser Role
The New Jersey Supreme Court has agreed to hear a case about whether the state violated the law by making pension contributions that were less than what was agreed upon in 2011 pension reform. The state is appealing the decision of a Superior Court judge who ruled the state’s failure to make promised contributions into its pension systems was a substantial impairment of public employees’ constitutionally protected contract rights.Read more >
From the Magazine
Managed Payout Funds an Alternative to Annuities
While annuities have seen some adoption in defined contribution (DC) plans, mutual fund providers have countered with a different option: managed payout funds, which are designed to invest life savings during the retirement years and distribute assets in a disciplined way. Because these funds turn to the stock and bond markets, their results are not guaranteed as they are for annuities. Still, managed payout funds can be a valuable complement to annuities and Social Security benefits, as well as provide retirees a greater degree of control over their assets.Read more >
Diverse TDFs Brought Diverse Returns in 2014
True or false: A given asset manager’s 2050 target-date fund (TDF) will outperform its 2045 counterpart during a year of strong market growth and manageable volatility. The intuitive answer is “true,” given the nature of glide-path investing and that the whole point of TDFs is to automatically ramp down on portfolio equity exposure over time—limiting both market risk and growth potential as the investor approaches the anticipated retirement date. In practice, things are somewhat murkier, observes Morningstar’s “2015 Target-Date Fund Landscape” report.Read more >
Plan Sponsors Look to Change Investment Lineup
More than one-third of sponsors (35%) plan to modify their investment lineup in the next 12 months, according to Cogent Reports’ annual Defined Contribution (DC) Investment Manager Brandscape study. In addition, four new investment managers—Goldman Sachs, J.P. Morgan Asset Management, John Hancock Funds and Prudential Retirement—are now on sponsors’ top 10 list. Last year, Goldman was ranked 13th, J.P. Morgan 11th, John Hancock 31st and Prudential 18th.Read more >
Small Talk
ON THIS DATE: In 1789, the U.S. House of Representatives held its first meeting. In 1935, Congress voted to approve the Works Progress Administration (WPA), a central part of President Franklin D. Roosevelt’s “New Deal.” In 1935, President Franklin D. Roosevelt authorized almost $5 million to implement work-relief programs. In 1974, Hank Aaron of the Atlanta Braves hit his 715th career home run, breaking Babe Ruth’s legendary record of 714 homers. In 2013, Margaret Thatcher, the first—and so far only—female prime minister of the United Kingdom, died in London at age 87 from a stroke.
WEDNESDAY WISDOM: “Discipline is the bridge between goals and accomplishment.” —Jim Rohn, author and motivational speaker
Share the good news with a friend! Pass the Dash along – and tell your friends/associates they can sign up for their own copy.Read more >

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Editorial: Alison Cooke Mintzer


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