Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
August 29th, 2017
Benefits & Administration
Reversing the Order of the Typical Recordkeeper Search
Researchers with J.P. Morgan Asset Management recently sat down with PLANSPONSOR to offer an early view of an interesting new case study, “Reverse the Search.” With so much ongoing evolution in the marketplace, Charlie Cote, head of Retirement Link Sales at J.P. Morgan Asset Management, says the time has come to rethink the “conventional approach” to recordkeeper searches, which separates the effort into two phases: “First, choose the recordkeeper. Then, choose a QDIA solution.” As laid out in the J.P. Morgan research, an alternative that may be better suited for today and tomorrow’s recordkeeping/investing market is to “reverse the order of the search.” Read more >
Consider Corporate Financials When Making DB Funding Decisions
Methods for reducing underfunded defined benefit (DB) plans should be looked at holistically, not in a vacuum, and they should be considered within a corporate financial context to avoid negative surprises to a company’s executive team, board of directors and shareholders, according to a white paper from Northern Trust Asset Management. For example, DB plan sponsors making additional cash contributions to fund their plans should consider locking in those funding gains to reduce the amount of operating cash they allocate to their plans in the future. Read more >
Products, Deals and People
Who’s Working for You?: The SPARK Institute
In a series of articles, PLANSPONSOR is focusing on industry groups that work for retirement and health plan sponsors to protect them from onerous burdens and help them with plan design. In this article we focus on The SPARK Institute. Read more >
MOST READ ARTICLES
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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?
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What to Know About Financial Audits Filed with Form 5500s
PLANSPONSOR Research
Searching for Answers
Are participants passing their own larger, individualized tests on retirement preparedness? The answer to this question is hinted at in the 2017 PLANSPONSOR Participant Survey. Now in its fourth year, the survey tracks the behaviors, actions taken and preferences of employees of all types—including those without access to a defined contribution (DC) plan, as well as those enrolled in one or opted out of one. This year’s survey found rising levels of retirement confidence—despite varied expectations of what retirement means—while raising some new questions about how best to support participant needs. Read more >
Market Mirror

Yesterday, the Dow was down 5.27 points (0.02%) at 21,808.40, the NASDAQ closed 17.37 points (0.28%) higher at 6,283.02, and the S&P 500 increased by 1.19 (0.05%) to 2,444.24. The Russell 2000 gained 4.77 points (0.35%) to finish at 1,382.22, and the Wilshire 5000 was up 11.23 points (0.04%) at 25,346.06.

 

The price of the 10-year Treasury note was up 2/32, decreasing its yield to 2.160%. The price of the 30-year Treasury bond was down 6/32, increasing its yield to 2.755%.

Compliance
District Court Permits Most of Plaintiff’s Case in ERISA Challenge
A federal district court has moved forward an Employee Retirement Income Security Act (ERISA) challenge filed against CNA Financial, its subsidiaries and the fiduciaries of its 401(k) plan. The underlying complaint challenges the process and motivation surrounding the termination of a group annuity contract. Read more >
Small Talk

ON THIS DATE: In 1886, in New York City, Chinese Ambassador Li Hung-chang’s chef invented chop suey. In 1944, during the continuing celebration of the liberation of France from the Nazis, 15,000 American troops marched down the Champs Elysees in Paris. In 1945, U.S. General Douglas MacArthur left for Japan to officially accept the surrender of the Japanese. In 1949, at the University of Illinois, a nuclear device was used for the first time to treat cancer patients. In 1971, Hank Aaron became the first baseball player in the National League to hit 100 or more runs in each of 11 seasons. In 1977, Lou Brock brought his total of stolen bases to 893. The record he beat was held by Ty Cobb for 49 years. In 1991, the republics of Russia and Ukraine signed an agreement to stay in the Soviet Union.

TRIVIAL PURSUITS: Will return next week.

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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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