|
Call for Plan Sponsors |
Would you be willing to share your experiences
with peers? Now in its ninth year, the PLANSPONSOR National Conference remains
a unique collaboration of plan sponsors, retirement plan advisers and providers
who are focused on understanding and applying the most innovative plan design
solutions available. If you are a plan sponsor and would like to share your
experiences during one of our panel discussions, email Alison Cooke Mintzer at acooke@assetinternational.com. |
|
Second Opinions |
SECOND OPINIONS: HIPAA Standard Transaction Rules |
With all of the other mandates, notices, and
penalties included in the Patient Protection and Affordable Care Act (ACA), one
section went largely unnoticed but potentially has a big impact on health
plans. The ACA added new requirements to the HIPAA Administrative
Simplification Rules, which are the rules that govern privacy and security of
protected health information. Two of the changes impose direct requirements on
health plans beginning this year—the Health Plan Identifier Rule and the HIPAA
Certification Rule. Experts from Groom Law Group answer questions about both
requirements. |
|
Benefit Briefs |
Reducing Volatility in DC Plan Lineups |
It sounds like the ever-elusive free lunch—an
investment strategy that reduces the potential for major losses while still
pursuing the market’s strongest opportunities for growth. But that’s exactly
what an increasing number of investors are demanding in the wake of the 2008
financial crisis, says Bradford Campbell, counsel with Drinker Biddle &
Reath LLP and former head of the Department of Labor’s Employee Benefits
Security Administration (EBSA). It’s an especially pressing demand in the retirement
planning context, Campbell tells PLANSPONSOR, where investors feel the
long-term outlook that dominates decisionmaking about defined contribution (DC)
plan investment menus doesn’t sufficiently address shorter-term volatility
concerns. |
|
Buyer's Market |
Online Tool Compares 401(k) Plan Fees |
America’s Best 401k, a provider of 401(k) plan
solutions for medium and small-sized businesses, has released an online tool
that checks plan fees. By entering in a company name, the fee checker will pull
plan information from the Department of Labor’s Form 5500 database and compare
its investment-related costs to industry averages. |
Insurance provider Allianz Life has joined
others in the retirement industry to support National Retirement Planning Week.
To help people better understand how financial “hits” triggered by
health care costs, inflation and taxes can potentially affect their retirement
income, Allianz Life launched “Retirement Income Risks,” a three-minute
animated video. |
New OneAmerica Platform Improves Plan Management |
OneAmerica has launched its OneSolution
platform, a collection of tools and services for employers to better manage
their retirement plans and increase plan participation. “This collection of
services not only makes it easier and more cost effective for employers to
manage their retirement plans but also encourages participation by employees
and helps them become retirement ready,” says Bill Yoerger, president,
retirement services for the companies of OneAmerica. |
During National Retirement Planning Week, AXA is
emphasizing the need to teach teachers about the importance of their own
retirement planning and financial education. Informational “teach-ins” on
retirement planning for school employees are being hosted by AXA Advisors
Financial Professionals this month at various locations. For online learning,
AXA has compiled a suite of retirement planning resources. |
Product Helps ESOPs Match Liabilities |
Archford Capital Strategies launched an
FDIC-insured, bank-issued, principal-protected investment to help employee
stock ownership plans (ESOPs) match future repurchase obligations. Archford
says it identified a gap in traditional risk adverse investments that could be
used to match future repurchase obligations (as well as health care, education
or pension expenses). Working with large banking institutions to customize an
existing investment product, it developed the Market Participation CD
(certificate of deposit). The CD is designed to reduce risk by protecting the
investment principal with FDIC coverage and participates in potential equity
market index gains when held to maturity. |
Lincoln Financial Group has launched its
Presidential Managed Risk Moderate Fund. The fund is an asset
allocation/balanced fund constructed from diversified exchange-traded funds
(ETFs), including Vanguard, State Street and iShares. A risk management overlay
seeks to protect investors during volatile markets and reduce the impact on
their account values. |
Vanguard to Exit DB Administration Business |
Investment management firm Vanguard announced it
will cease offering administration services for defined benefit (DB) retirement
plans. The firm will continue to provide DB plan sponsors with its low-cost
investments, trustee and payment services, and investment advisory services.
The change will enable the firm to further expand its services for 401(k),
403(b), and other defined contribution (DC) retirement plans. |
MassMutual’s retirement services division
launched an enhanced participant website designed to make it easier for
employees to prepare for retirement. The new RetireSmart site boasts more
intuitive navigation and a new design that offers all educational content and
planning tools in a streamlined, interactive format accessible both pre- and
post-login. The site’s homepage organizes educational and account-level content
into four sections. |
|
Industry Voices |
Industry Voice: Home Country Bias an Epidemic for Plan Participants |
Home country bias is an epidemic for
participants looking to build their nest eggs. In daily life, people are more
likely to visit restaurants and stores close to home because they are familiar
with the local area. But in doing so, they deprive themselves of all the great
places in other neighborhoods. Similarly, in retirement portfolios, plan
participants often over-allocate investments to companies domiciled in their
own country, thereby potentially missing out on significant growth
opportunities abroad, slowing their progress toward retirement readiness. |
|
Market Mirror |
Tuesday, the Dow was up 10.27 points
(0.06%) at 16,256.14, the NASDAQ climbed 33.23 points (0.81%) to 4,112.99, and
the S&P 500 increase 6.92 points (0.38%) to 1,851.96. The Russell 2000
closed 8.46 points (0.74%) higher at 1,144.24, and the Wilshire 5000 closed at
19,733.34, up 96.07 points (0.49%).
On the NYSE, 3.2 billion shares changed
hands, with advancing issues outnumbering declining issues more than 2 to 1. On
the NASDAQ, 2.7 billion shares traded, with a near 2 to 1 lead for advancers.
The price of the 10-year Treasury note increased 6/32,
decreasing its yield to 2.683%. The price of the 30-year Treasury bond was up
13/32, bringing its yield down to 3.541%.
|
|
Rules & Regulators |
This summer, the Department of Labor (DOL) will
be holding free seminars about fiduciary responsibilities in Hartford,
Connecticut, and Oklahoma City, Oklahoma. The DOL’s “Getting It Right: Know
Your Fiduciary Responsibilities” seminars are designed to increase awareness
and understanding about basic fiduciary responsibilities when operating a
retirement plan. |
|
The World at Large |
The UK’s Financial Conduct Authority is
conducting a “thematic review” of advisers’ implementation of new charging
rules following the 2012 Retail Distribution Review. The latest report from the
investigation reveals a “high proportion” are failing to correctly disclose to
clients the cost of their advice and the independence from certain providers of
service they offer. |
|
Small Talk |
Small Talk: Disciplined Planning Leads to Happier Retirement |
The more discipline a person brings to financial
planning, the more financially secure they feel in the present, which leads to
a greater likelihood they will be happy in the future, says a recent study. The
“2014 Planning and Progress Study,” an annual research project commissioned by
Northwestern Mutual, finds 70% of highly disciplined planners feel very
financially secure, compared with 51% of disciplined planners, 34% of informal
planners and 17% of nonplanners. The study also shows highly disciplined
planners who are retired are much more likely than nonplanners to say they are
happy in retirement (91% vs. 63%). |
ON
THIS DATE: In
1865, at Appomattox, Virginia, Confederate
General Robert E. Lee surrendered his 28,000 troops to Union General Ulysses S.
Grant, effectively ending the American Civil War. In 1959, the National Aeronautics and Space Administration (NASA)
introduced America’s first astronauts to the press: Scott Carpenter, L. Gordon
Cooper Jr., John H. Glenn Jr., Virgil “Gus” Grissom, Walter Schirra
Jr., Alan Shepard Jr., and Donald Slayton. The seven men, all military test
pilots, were carefully selected from a group of 32 candidates to take part in
Project Mercury, America’s first manned space program.
WEDNESDAY
WISDOM: “Fortune
favors the prepared mind.”—Louis Pasteur, French chemist and
microbiologist
Share the good news with a friend! Pass the Dash along – and tell your
friends/associates they can sign up for their own copy.
|
News from PLANSPONSOR.com
Copyright © Asset International, Inc.,
2014.
All
rights reserved. No reproduction without
prior authorization.
|
|
Sponsored message |
PLANSPONSOR interviews Scott Francolini, from New York Life Retirement Services National Practice Leader Scott Francolini shares how New York Life Retirement Plan Services is thinking differently about retirement plan strategy and success, and how the company is combatting today’s industry challenges. |