Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
August 4th, 2016
Benefits & Administration
The use of captive insurance companies for financing employee benefits continues to evolve as companies increasingly go beyond using their captive vehicles purely to save money on their annual employee benefit bill, Willis Towers Watson finds. This year’s study shows the primary driver for nearly half (44%) of companies with employee benefits in their captive is to control and improve their claim data to help with ongoing cost management.Read more >
Multiemployer Plans Are Predominantly in Green Zone
A strong majority of U.S. multiemployer retirement plans stand in the Pension Protection Act-defined “green zone,” according to Segal Consulting’s new survey of Plans’ Zone Status. However, nearly half of participants are in “red zone” plans.Read more >
MOST READ ARTICLES
1
Another Schlichter Suit Targets Sponsor and Providers
2
2020 Recordkeeping Survey
3
Could There Be a Renewed Interest in DB Plans?
4
2020 Best in Class DC Providers
5
Participants Are Saving More With ‘TDF-Plus’ Strategies
Employees Find Wellness Programs Ineffective
Although 59% of employees say benefits are “very important,” only 25% of them believe their employers’ health and wellness programs are effective, according to research by One Medical.Read more >
Most Millennials View Retirement Savings Goal as Impossible
The majority of working Millennials, 64%, do not think it will be possible for them to save $1 million—frequently cited as a savings target—over the course of their lifetime, according to the Wells Fargo Millennial Study. Fifty-nine percent of Millennials have started saving, but 41% have not, with 64% of those who haven’t saying the reason is simply because they don’t make enough.Read more >
Sponsored message from PNC
Generational Divide in the Workplace
Generational Divide in the Workplace and Its Impact on Plan ParticipationRead more >
Market Mirror

Yesterday, the Dow closed 41.23 points (0.23%) higher at 18,355.00, the NASDAQ increased 22.01 points (0.43%) to 5,159.74, and the S&P 500 was up 5.85 points (0.27%) at 2,162.88. The Russell 2000 gained 10.38 points (0.86%) to finish at 1,212.72, and the Wilshire 5000 climbed 90.59 points (0.41%) to 22,430.37.

On the NYSE, 3.1 billion shares changed hands, and on the NASDAQ, 2.6 billion shares traded, with advancing issues outnumbering declining issues 2 to 1 on both exchanges.

The price of the 10-year Treasury note was up 3/32, decreasing its yield to 1.546%. The price of the 30-year Treasury bond increased 8/32, bringing its yield down to 2.296%.
Compliance
IRS Reminds Plan Sponsors What to Do With Compliance Statements
The Internal Revenue Service (IRS) has updated its page explaining what retirement plan sponsors should do once they receive a compliance statement. When a plan sponsor and the IRS agree with the proposed correction of plan failures disclosed in a Voluntary Correction Program (VCP) submission, the IRS issues a compliance statement listing the failures and the applicant’s proposed corrections. The compliance statement is conditioned on the plan sponsor correcting the failures before the end of the correction period.Read more >
From the Magazine
LDI Evolves
Liability-driven investing, or LDI, operates at two levels in the defined benefit (DB) world. First, it is a philosophy. Rather than take a long, “total return” view that invests for maximum risk-adjusted return over market cycles, LDI calls for a short-term, lock-step approach to match each year’s portfolio returns to changes in the value of benefit liabilities. At a second level, LDI is also a group of tactics for carrying out that philosophy to ensure that funding levels stay within a desired range, with the goal being to reach full funding and hedge against liabilities.Read more >
Small Talk
ON THIS DATE: In 1790, the Revenue Cutter Service was formed. This U.S. naval task force was the beginning of the U.S. Coast Guard. In 1821, “The Saturday Evening Post” was published for the first time as a weekly. In 1922, the death of Alexander Graham Bell, two days earlier, was recognized by AT&T and the Bell Systems by shutting down all of its switchboards and switching stations. The shutdown affected 13 million phones. In 1944, Nazi police raided a house in Amsterdam and arrested eight people. Anne Frank, a teenager at the time, was one of the people arrested. In 1957, Florence Chadwick set a world record by swimming the English Channel in 6 hours and 7 minutes. In 1958, Billboard Magazine introduced its “Hot 100” chart, which was part popularity and a barometer of the movement of potential hits. The first number one song was Ricky Nelson’s “Poor Little Fool.” In 1977, U.S. President Jimmy Carter signed the measure that established the Department of Energy. In 1987, the Fairness Doctrine was rescinded by the Federal Communications Commission. The doctrine had required that radio and TV stations present controversial issues in a balanced fashion. In 1997, teamsters began a 15-day strike against UPS (United Parcel Service). The strikers eventually won an increase in full-time positions and defeated a proposed reorganization of the company’s pension plan.
SURVEY SAYS: The Bureau of Labor Statistics reports that on an average day in 2015, nearly all Americans age 15 and older (96%) engaged in some sort of leisure activity such as watching TV, socializing, or exercising. This week, I’d like to know, how much time on an average day do you spend on leisure activities, and what leisure activity do you spend the most time doing? You may respond to this week’s survey by 6 p.m. Pacific time today.Read more >
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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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