Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
August 14th, 2017
Benefits & Administration
Plan Sponsors See Struggles if Moving to Roth-Only Retirement Savings
Seventy-eight percent of plan sponsors think that if 401(k) plans moved to Roth-only participant contributions, it would negatively impact participation, the Committee on Investment of Employee Benefit Assets Inc. (CIEBA) found in a membership survey. No members thought it would have a positive impact. Eighty-two percent said they thought participants would view a change to a Roth-only system very or somewhat negatively. Read more >
Products, Deals and People
Retirement Industry People Moves
Lincoln Financial Group hires Retirement Plan Services leader; Teachers Tax Service joins PlanMember; Retirement Advantage to acquire Retirement Planning Inc.; and more. Read more >
MOST READ ARTICLES
1
AT&T Sued Over Calculation of Early Retirement Benefits
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Congressional Leaders Want SECURE Act Passage in 2019
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New Lawsuit Highlights Importance of Cybersecurity for Retirement Plans
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IRS Releases 2019-2020 Priority Guidance Plan
5
DC Plans 3.0 Will Really be Tailored to Individual Situations
Economic Events

In July, the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1% seasonally adjusted; rising 1.7% over the last 12 months, not seasonally adjusted, the Bureau of Labor Statistics reported. The index for all items less food and energy rose 0.1% in July (SA)—up 1.7% over the year (NSA).

Real average hourly earnings increased 0.2% in July, seasonally adjusted. Average hourly earnings increased 0.3%, and CPI-U increased 0.1%. Real average weekly earnings increased 0.2% over the month.

THE ECONOMIC WEEK AHEAD: Tomorrow, the Census Bureau will report about retail sales in July and business trade for June. Wednesday, the Census Bureau will report about housing starts in July. Thursday, the Labor Department will issue its initial claims report.

Sponsored message from Enterprise Iron
The Challenges Of Delivering A Multi-Generational Retirement Experience: How effective and efficient are your service providers? Read more >
Market Mirror

Friday, the Dow increased 14.31 points (0.07%) to 21,858.32, the NASDAQ gained 39.68 points (0.64%) to finish at 6,256.56, and the S&P 500 was up 3.11 points (0.13%) at 2,441.32. The Russell 2000 increased by 1.69 (0.12%) to 1,374.23, and the Wilshire 5000 closed 39.26 points (0.16%) higher at 25,291.14.

The price of the 10-year Treasury note was up 2/32, decreasing its yield to 2.191%. The price of the 30-year Treasury bond increased 6/32, bringing its yield down to 2.786%.

WEEK’S WORTH: For the week ending August 11, the Dow was down 1.06%, the NASDAQ finished 1.50% lower, and the S&P 500 decreased 1.43%. The Russell 2000 fell 2.70%, and the Wilshire 5000 lost 1.63%.

Compliance
Survey Suggests Small Balance Retirement Savers Hurt By Fiduciary Rule
FSR says, “access to investment services for investors with modest-sized and small-account balances has been, and will continue to be, substantially diminished as a result of the best interest contract (BIC) exemption’s onerous compliance burdens and litigation risks.” Read more >
Investing
Managing Participants’ Reactions to Volatility
It may have been predictable that North Korea’s rumblings would send the markets down. So reassuring your participants that a recovery lies ahead is key. Read the wisdom experts shared in a previous volatile market to help keep participants calm and carrying on. Read more >
Sustainable Investments In 401(k)s Attract Millennials
Millennials are almost universally interested (90%) in pursuing sustainable investments as part of their 401(k)s, according to a study by the Morgan Stanley Institute for Sustainable Investing. Three-quarters of investors overall, and 86% of Millennials are interested in sustainable investing. Investors report an uptick in sustainability-minded investment decisions since 2015 (38%, up from 32%). Read more >
Small Talk

ON THIS DATE: In 1848, the Oregon Territory was established. In 1896, gold was discovered in Canada’s Yukon Territory. Within the next year more than 30,000 people rushed to the area to look for gold. In 1935, U.S. President Franklin D. Roosevelt signed the Social Security Act into law. The act created unemployment insurance and a pension system for the elderly. In 1941, Congress appropriated the funds to construct the Pentagon (approximately $83 million). In 1945, it was announced by U.S. President Harry Truman that Japan had surrendered unconditionally. The surrender ended World War II. In 1953, the whiffle ball was invented. In 1959, the first meeting was held to organize the American Football League. In 1980, People for Ethical Treatment of Animals (PETA) was incorporated. In 1995, Shannon Faulkner became the first female cadet in the history of The Citadel, South Carolina’s state military college. She quit the school less than a week later. In 2015, in Havana, Cuba, the U.S. Embassy was re-opened after being closed 54 years earlier.

SURVEY SAYS RESPONSES: Last week, I asked NewsDash readers, “Do you have co-workers who are your friends outside of work, and if so, does this make your work day better?” More than half (54.3%) of responding readers said they do have a co-worker or co-workers who are their friends outside of work, while 45.6% indicated they do not. Slightly more than 45% reported that having co-workers who are friends outside of work make their work day better (more productive, happier), while 9.5% said it made their work day worse (less productive). More than one-quarter (26.2%) indicated that it depends on the day, and 19% said it has no effect on their work day. While there were certainly comments from responding readers about the advantages of having co-workers who are also friends outside of work, there were a significant number that mentioned negatives. Quite a few readers just want to keep personal and work life separate. And, several expressed that it is harder to be friends with co-workers once you move up the company ladder. Because I am in a similar situation, Editor’s Choice goes to the reader who said: “I don’t currently have coworkers who live close by because I work remotely. We are friends in the sense that we share aspects of our personal lives, but we don’t spend time together outside the office. In the past, when I worked in an office, I found it very beneficial to interact with coworkers as friends outside the office.” Thanks to all who participated in the survey! Read more >
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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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