Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
August 23rd, 2017
Benefits & Administration
HSA Assets Have Grown 23% During the Past Year to $42.7B
Health savings account (HSA) assets grew 23% over the trailing 12 months ended June 30, to $42.7 billion, according to Devenir Research’s analysis of the top 100 HSA providers. The number of accounts grew 16%, to 21 million. In 2016, HSA holders and employers contributed $25.5 billion to the accounts, and participants withdrew $19.8 billion. Exactly one-third of all HSA dollars contributed to an account year-to-date this year have come from an employer. Employers contributed an average of $719, and employees contributed an average of $1,111.Read more >
MOST READ ARTICLES
1
IRS Announces 2020 Contribution and Benefit Limits
2
The Odds Are Split for Senate SECURE Act Passage This Year
3
Pension Risk Transfer Appetite Is Unabated
4
Congressional Leaders Want SECURE Act Passage in 2019
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Why Americans Need the SECURE Act
Small Employers’ Health Plans Competitive With Larger Companies’
Small employers, those with fewer than 100 employees, are doing a better job than larger companies at containing their health plan costs, says a survey from United Benefit Advisors. Employees at companies of all sizes pay an average of $3,378 toward annual health insurance benefits, but an average of $3,557 at small companies. Employers of all sizes pay an average of $9,727 toward each employee’s annual health insurance benefits, but small companies pay an average of $9,474. United Benefit Advisors says this cost management is because of grandfathering and the impact of the PACE Act, which helped many of them stay in pre-Affordable Care Act plans at better rates.Read more >
Products, Deals and People
SCEBS Addresses Common BICE Questions
As the Department of Labor’s (DOL) fiduciary rule goes through its phased implementation, some financial institutions and advisers will take on new requirements regarding the delivery of investment advice to retirement plan participants and other stakeholders. To give plan officials a closer look into what these rules can mean for them and to help advisers understand what will be required of them, the International Society of Certified Employee Benefit Specialists has released a new report, “Everything You Wanted to Know About BICE But Were Afraid to Ask.” Read more >
Advisory firms CAPTRUST and CapTrust have announced a merger after nearly 20 years of separate operations.  Since the two groups split in 1998, CAPTRUST, based in Raleigh, North Carolina, has specialized in wealth management as well as institutional asset management, growing to manage some $250 million in client assets. CapTrust, based in Tampa, Florida, has specialized in endowments and foundations and built a significant wealth management and 401(k) business, growing to $19 billion in assets under advisement. Jeb Graham, retirement plan consultant partner with CapTrust Advisors since 2005, was recognized as the 2013 PLANSPONSOR Retirement Plan Adviser of the Year.Read more >
Alegeus Looks to Enhance CDH Benefit Adoption
Alegeus, a firm specializing in consumer directed healthcare (CDH) solutions, is expanding its consumer engagement capabilities designed to maximize adoption and utilization of CDH benefit programs including high-deductible health plans and health savings accounts (HSAs). The firm is redesigning communications content and rolling out automated, targeted outreach programs and now offers its clients customizable blueprints for year-round, direct-to-consumer engagement designed to optimize CDH program participation and ongoing usage. Read more >
Market Mirror

Yesterday, the Dow gained 196.14 points (0.90%) to finish at 21,899.89, the NASDAQ closed 84.35 points (1.36%) higher at 6,297.48, and the S&P 500 increased 24.14 points (0.99%) to 2,452.51. The Russell 2000 gained 14.63 points (1.08%) to finish at 1,371.53, and the Wilshire 5000 climbed 249.05 points (0.99%) to 25,386.44.

The price of the 10-year Treasury note was down 9/32, increasing its yield to 2.215%. The price of the 30-year Treasury bond decreased 16/32, bringing its yield to 2.788%.

Ask the Experts
Re-borrowing After Repayment of a Defaulted Loan
“I work for a plan sponsor where payroll deduction and outside collateral cannot be used for loans. We have a participant who defaulted on a loan, but who later paid off the loan in its entirety. Do the Internal Revenue Service (IRS) regulations allow for re-borrowing in this situation?”Read more >
Compliance
IRS Issues Amendments for Bifurcated DB Distribution
Following its issuance of a final rule on partial annuity distribution options in defined benefit plans (DBs), the Internal Revenue Service (IRS) has just issued model amendments including language that DB sponsors might want to use when offering such options. To facilitate the payment of benefits partly in the form of an annuity and partly as a single sum, the Department of the Treasury and the IRS amended the regulations to simplify how sponsors would calculate the payments, in order to encourage sponsors to offer participants the additional option of an annuity. Read more >
Federal Pensions Challenge Big Banks’ Securities Lending Practices
Three U.S. pension funds have filed a lawsuit against a group of the world’s biggest investment banks including Goldman Sachs, JPMorgan, Credit Suisse, UBS and Bank of America alleging the banks conspired to block competition in the securities lending marketplace through a variety of means. The arguments suggest the major providers in the marketplace for securities lending have colluded and purposefully allowed the market to remain inefficient and opaque. The plaintiffs argue the providers have inappropriately worked together and structured the marketplace so that investors cannot clearly and efficiently find out who has different stock available for lending purposes and where the demand for borrowing specific stocks exists. Read more >
Investing
As many as 114 multiemployer pension plans, covering 1.3 million workers, could fail within 20 years, according to Cheiron Inc. The actuarial consulting firm says the plans are underfunded by $36.4 billion. The failing multiemployer plans informed regulators that they are in critical and declining status, as required by the Multiemployer Pension Reform Act of 2014. These plans have total assets of $43.5 billion and liabilities of $79.9 billion.Read more >
Small Talk
ON THIS DATE: In 1838, the first class graduated from Mount Holyoke Female Seminary in South Hadley, MA. It was one of the first colleges for women. In 1839, Hong Kong was taken by the British in a war with China. In 1902, Fannie Merrit Farmer opened her cooking school, Miss Farmer’s School of Cookery, in Boston. In 1904, Hard D. Weed patented the grip-tread tire chain for cars. In 1914, Tsingtao, China, was bombarded as Japan declared war on Germany in World War I. In 1939, Nazi Germany and the Soviet Union signed a non-aggression treaty. In 1944, Marseilles was captured by Allied troops during World War II. In 1959, Sally debuted in the Peanuts comic strip as an infant. In 1962, the first live TV program was relayed between the U.S. and Europe through the U.S. Telstar satellite. In 1982, Gaylord Perry (Seattle Mariners) was tossed out of a game for throwing an illegal spitball. In 1984, South Fork Ranch, the home of the fictitious Ewing clan of the CBS-TV show, “Dallas,” was sold. The ranch was to be transformed from a tourist site into a hotel. In 1990, President Saddam Hussein appeared on Iraqi state television with a group of Western detainees that he referred to as “guests.” He told the group that they were being held “to prevent the scourge of war.” In 1993, it was confirmed by Los Angeles police that Michael Jackson was the subject of a criminal investigation. In 1996, U.S. President Clinton imposed limits on peddling cigarettes to children. In 2000, Richard Hatch was revealed as the winning castaway on the first season of CBS’ “Survivor.” Hatch won $1,000,000 for his stay on the island of Pulau Tida in the South China Sea.

 

 

WEDNESDAY WISDOM:  “Experience is a hard teacher because she gives the test first, the lesson afterward.” – Vernon Law

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

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