Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
August 1st, 2018
Benefits & Administration
Half of Retirement Savers Think They Are Behind
Among Americans between the ages of 45 and 65 who are saving for retirement, Allianz Life found that 49% are “chasers” who think they need to catch up on their retirement savings. Ninety-eight percent wish there was a way to make up for lost time, but 63% say they cannot take the chance of investing in higher risk financial products. Read more >
Ask the Experts
Types of Automatic Enrollment Arrangements Required for Existing and New Employees
“I am an Employee Retirement Income Security Act (ERISA) 403(b) plan sponsor that is considering automatic enrollment. Are we required to implement automatic enrollment for all employees, or can we implement only for new hires?” Read more >
Products, Deals and People
JHRPS Offers Financial Aggregation Tool
In applying My Money Connector, retirement plan participants can work toward a budget, monitor spending habits, determine savings goals and manage finances, says the firm. Read more >
MOST READ ARTICLES
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J.P. Morgan Agrees to Settle Stable Value Funds Suit
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SECURE Act Passes House, Bringing Calls for Senate Collaboration
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Individuals, Employers and Government All Play a Part in Retirement Readiness
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Participant Loans: A Fiduciary Storm Brewing?
5
What to Know About Financial Audits Filed with Form 5500s
Economic Events

The Conference Board Consumer Confidence Index increased marginally in July, following a modest decline in June. The Index now stands at 127.4 (1985=100), up from 127.1 in June. The Present Situation Index improved from 161.7 to 165.9, while the Expectations Index declined from 104.0 last month to 101.7 this month.

Market Mirror

Tuesday, the Dow gained 108.36 points (0.43%) to finish at 25,415.19, the NASDAQ closed 41.79 points (0.55%) higher at 7,671.79, and the S&P 500 was up 13.69 points (0.49%) at 2,816.29. The Russell 2000 increased 17.67 points (1.07%) to 1,670.81, and the Wilshire 5000 climbed 165.11 points (0.57%) to 29,295.75.

The price of the 10-year Treasury note was up 5/32, decreasing its yield to 2.958%. The price of the 30-year Treasury bond increased 16/32, bringing its yield down to 3.081%.

Sponsored message from Artisan Partners
Tight Spreads Shouldn’t Diminish High Yield’s Appeal. Despite tight credit spreads, Artisan Partners Credit Team believes benign credit backdrop of strong economic momentum and low default activity should create a favorable environment for high yield investors going forward. Read more >
Compliance
Plan Sponsors Shouldn’t Fear Making Settlor Decisions
Retirement plan sponsors often fear participant backlash when making decisions that could actually help improve participant outcomes, but the law is on their side, as plan amendments are considered settlor functions. For example, adding automatic deferral escalation and stretching the match are settlor functions because they are plan amendments, even if to some participants they seem to be not in their best interest. Read more >
Investing
Your DB Funded Status Has Improved? Now What?
Corporate defined benefit (DB) plans have experience funded status improvement, and liability-driven investing (LDI) strategies help plan sponsors preserve this; however, investment committees are looking for new asset classes that can provide greater returns at a reasonable level of risk. Northern Trust Asset Management offers four considerations for setting DB plan investment strategy. Read more >
Small Talk
Professionals surveyed by Accountemps said they spend more than one-fifth (21%) of their work hours in meetings but feel one-quarter of that time is wasted. The response from finance leaders was similar: Slightly more of their time (24%) is spent in meetings, and they feel 21% of that is unproductive. Employees and executives shared things about meetings that bug them. Read more >

ON THIS DATE: In 1774, oxygen was isolated from air successfully by chemist Carl Wilhelm and scientist Joseph Priestly. In 1790, the first U.S. census was completed with a total population of 3,929,214 recorded. The areas included were the present states of Connecticut, Delaware, Georgia, Kentucky, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, North Carolina, South Carolina, Tennessee, Vermont and Virginia. In 1876, Colorado became the 38th state to join the United States. In 1893, shredded wheat was patented by Henry Perky and William Ford. In 1907, the U.S. Army established an aeronautical division that later became the U.S. Air Force. In 1914, Germany declared war on Russia at the beginning of World War I. In 1943, in the Solomon Islands, the U.S. Navy patrol torpedo boat PT-109 sank after being hit by the Japanese destroyer Amagiri. The boat was under the command of Lt. John F. Kennedy. Eleven of the thirteen crew survived. In 1944, in Warsaw, Poland, an uprising against Nazi occupation began. The revolt continued until October 2 when Polish forces surrendered. In 1946, in the U.S., the Atomic Energy Commission was established. In 1956, the Social Security Act was amended to provide benefits to disabled workers ages 50 to 64 and disabled adult children. In 1957, the North American Air Defense Command (NORAD) was created by the United States and Canada. In 1993, Reggie Jackson was admitted into the Baseball Hall of Fame in Cooperstown, New York. In 1995, Westinghouse Electric Corporation announced a deal to buy CBS for $5.4 billion.


WEDNESDAY WISDOM:
“He who lives in harmony with himself lives in harmony with the universe.”—Marcus Aurelius, Roman emperor from 161 to 180

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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

Advertising: Paul Zampitella paul.zampitella@strategic-i.com

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