Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
December 16th, 2014
Benefits & Administration
Tech Can Help Participants Connect with Future Self
A decision and its consequences are often disconnected, says Warren Cormier, founder and president of Boston Research Group, in San Francisco. This is particularly true when it comes to retirement planning. Rarely can people immediately discern an impact after making a decision about their retirement plan portfolios, Cormier notes. This is where behavioral economics can play a critical part in helping plan participants understand their own actions, by helping providers come up with technology that uses this understanding.Read more >
More investors surveyed prefer a 401(k) over a pension, and they do not want to give up control of all retirement savings actions. Asked whether they prefer a “a 401(k)-type plan that you control and invest in, and which the company may contribute to, with the payout dependent on your plan’s performance” or “a company pension plan that provides you with a guaranteed income in retirement, with the payout dependent on your salary and how long you worked for your employer,” 52% of not-yet-retired investors chose the 401(k), versus 46% who chose the pension, according to the Wells Fargo/Gallup Investor and Retirement Optimism Index for the fourth quarter.Read more >
DC Plan Use of Company Stock More Restricted
Fewer retirement plans offer employer stock, and fewer plan participants hold concentrated company stock positions in their retirement savings accounts, finds a new analysis from Vanguard. Many companies that still offer company stock in 401(k)s or other defined contribution (DC) plans now impose restrictions on the option, Vanguard notes in “Company stock in defined contribution plans: An update.”Read more >
Sponsored message from Vanguard
The Washington Connection: Key issues in the run-up to mid-terms
In the newest “Washington Connection” installment, Ann Combs, head of Vanguard Government Relations, offers insight on the latest legislative and regulatory issues from our nation’s capital. Click here to hear more.Read more >
MOST READ ARTICLES
1
2021 Target-Date Fund Survey
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The DOL Has Begun Retirement Plan Cybersecurity Audits
3
2020 Recordkeeping Survey
4
Differences Between Safe Harbor and Traditional DC Plans
5
Rush of Litigation Against Retirement Plans Expected to Continue
Products, Deals & People
Prudential Retirement, a business unit of Prudential Financial, has launched Gibraltar Ventures as a separate organization focused on developing new investment ideas and business strategies. The organization will explore, develop and invest in new strategies to advance retirement and financial security, according to Prudential.Read more >
DCIIA Offers Clarity of Longevity Annuity Rules
In its newly released document, “Qualifying Longevity Annuity Contracts: Answers to Frequently Asked Questions (FAQs),” the Defined Contribution Institutional Investment Association (DCIIA) provides insight into recently announced regulations that make longevity annuities accessible to the defined contribution (DC) and individual retirement account (IRA) markets.Read more >
Market Mirror

U.S. stock indices ended lower again, in part due to weakening investor confidence due to falling oil prices. The Dow was down 99.99 points (0.58%) at 17,180.84, the NASDAQ fell 48.44 points (1.04%) to 4,605.16, and the S&P 500 closed 12.70 points (0.63%) lower at 1,989.63. The Russell 2000 lost 12.15 points (1.05%) to finish at 1,140.30, and the Wilshire 5000 decreased 151.39 points (0.72%) to 20,858.44.

On the NYSE, 3.2 billion shares traded, with a near 3 to 1 lead for decliners. On the NASDAQ, 2.8 billion shares changed, with 2.3 declining issues for every advancing issue.

The price of the 10-year Treasury note fell 10/32, increasing its yield to 2.116%. The price of the 30-year Treasury bond was down 8/32, bringing its yield up to 2.748%.

Compliance
Pressure to Retire Leads to Age Bias Suit
Blinded Veterans Association (BVA), a Washington, D.C.-based non-profit that provides services to blind veterans, is facing an Age Discrimination in Employment Act (ADEA) lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC). The EEOC says the company fired two employees because of their age after repeatedly pressuring them to retire.Read more >
Nationwide Settles 13-Year-Old Revenue-Sharing Suit
Nationwide Financial Services has filed a motion for preliminary approval of a settlement of a lawsuit filed by trustees of five qualified retirement plans alleging that the provider’s revenue-sharing arrangement with mutual funds constituted transactions prohibited by the Employee Retirement Income Security Act (ERISA). In its motion, Nationwide says the settlement secures a number of significant changes to its business practices that will result in different investment options and enhanced disclosures for the plans and for future purchasers of Nationwide’s annuity contracts and trust platform products. Nationwide will also pay $140,000,000 to the class identified in the lawsuit.Read more >
Small Talk

ON THIS DATE: In 1773, in Boston Harbor, a group of Massachusetts colonists disguised as Mohawk Indians boarded three British tea ships and dumped 342 chests of tea into the harbour during a midnight raid, popularly known as the “Boston Tea Party.” It was in protest of the British Parliament’s Tea Act of 1773. In 1905, Sime Silverman published the first issue of “Variety” magazine. In 1944, Nazi leader Adolf Hitler ordered a massive attack against the western Allies by three German armies. The German created a triangular “bulge” 60 miles deep and 50 miles wide along the Allied front—thus, the fight became known as The Battle of the Bulge. In 1972, the Miami Dolphins became the first National Football League (NFL) team to go unbeaten and untied in a 14-game regular season. The Dolphins went on to defeat the Washington Redskins in Super Bowl VII. In 1977, “Saturday Night Fever,” a movie that ignited the disco dance craze across America and started the movie career of its star, John Travolta, opened in theaters. In 1998, Eric Michelman filed the earliest patent for a scroll wheel for a computer mouse. In 1999, Sigourney Weaver received a star on the Hollywood Walk of Fame. In 2010, Larry King, the then-77-year-old suspenders-sporting host of TV talk show “Larry King Live,” signed off after 25 years on the air.

 

TUESDAY TRIVIA: The second most-consumed beverage in the world (after water) is tea.

TRIVIAL PURSUITS: By the time the holiday season is over, the U.S. Postal Service (USPS) will have processed and delivered more than 545 million cards, letters and packages each day. What is the busiest mailing day of the year, according to the USPS?Read more >
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