Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
December 16th, 2015
Benefits & Administration
Plan Return Comparison Highlights DB Outperformance
The Center for Retirement Research at Boston College has published a new report comparing investment returns by plan type from 1990 through 2012, using data from the U.S. Department of Labor’s Form 5500. During the sample period, defined benefit (DB) plans outperformed 401(k)s by an average of 0.7% per year, CRR finds, even after controlling for plan size and asset allocation.Read more >
Top Action Points for DC Plans in 2016
Leading-edge employers already know “retirement plans are not enough” when it comes to improving employees’ long-term financial outlook, according to a new Mercer study.Read more >
MOST READ ARTICLES
1
2021 DC Plan Benchmarking Survey
2
Working Past Age 65 May Seem Like a Great Idea …
3
2022 Retirement Industry Trends to Follow
4
2021 Recordkeeping Survey
5
TRIVIAL PURSUITS: Residents of the Island of Misfit Toys
Ask the Experts
Can 10-Year Averaging Be Used for 403(b) Distributions
“I work in the benefits office of a university that sponsors a 403(b) retirement plan. Recently, one of our oldest professors decided to retire, and wishes to withdraw his retirement plan account balance in a lump-sum. His tax adviser informed him that the distribution qualifies for something called ’10-year averaging’ that lowers the taxes he would pay on the distribution, but I’ve never heard of such a thing! Do the Experts know anything about this?”Read more >
Products, Deals and People
John Hancock RPS Updates Digital Presence
John Hancock Retirement Plan Services has redesigned its participant websites for all of its retirement plan clients, across all devices. The sites were revamped to ease usability and encourage participant interaction, according to the firm.Read more >
Sponsored message from MetLife
Stable Value vs. Money Market Funds
Stable value solutions and illustrations of historical risk/return comparisons of the Met Managed GIC against money market funds.Read more >
Economic Events

On a seasonally adjusted basis, the Consumer Price Index for All Urban Consumers (CPI-U) was unchanged in November after increasing 0.2% in October. The index for all items less food and energy rose 0.2% in November, the same increase as in October.

Real average hourly earnings increased 0.1% in November, seasonally adjusted. Average hourly earnings increased 0.2%, and CPI-U was unchanged. Real average weekly earnings decreased 0.2% over the month.
Market Mirror

Tuesday, the Dow closed 156.41 points (0,90%) higher at 17,524.91, the NASDAQ increased 43.13 points (0.87%) to 4,995.36, and the S&P 500 was up 21.47 points (1.06%) at 2,043.41. The Russell 2000 gained 15.70 points (1.41%) to finish at 1,131.55, and the Wilshire 5000 climbed 227.58 points (1.10%) to 20,951.78.

On the NYSE, 3.2 billion shares traded, with advancing issues outnumbering declining issues more than 3 to 1. On the NASDAQ, 2.7 billion shares changed hands, with a more than 2 to 1 lead for advancers.

The price of the 10-year Treasury bond increased 2/32, bringing its yield down to 2.262%. The price of the 30-year Treasury bond was up 1/32, decreasing its yield to 2.986%.
Compliance
Form 5500 Will Dig Deeper into Compliance
The big news on Form 5500, according to Linda Fisher, principal of Linda T. Fisher Form 5500 Consulting in Chicago, and Form 5500 fangirl, are the new compliance questions for the 2015 plan year. “Optional,” the IRS says, “but we strongly encourage you to answer them.” When the instructions accompanying the questions turned out to lack sufficient detail for plan sponsors, Fisher says, a flurry of comment letters motivated the Internal Revenue Service (IRS) to make those questions optional. “There was a huge sigh of relief,” she says, “because of the lack of clarity and the big changes.”Read more >
Investing
New data released by Hartford Funds shows high levels of investor optimism going into 2016, despite major life changes potentially throwing finances off-kilter. The survey also shines a light on investor expectations about which events will most likely affect their finances.Read more >
Small Talk
Twenty-one percent of workers say they plan to buy holiday gifts for co-workers (the same proportion as last year), according to CareerBuilder’s annual holiday survey. For the survey, workers across the nation shared the most unusual gifts they’ve received from a co-worker during the holiday season. In addition, the survey found a higher percentage of employers plan to offer holiday perks in the form of parties, bonuses and gifts this year than in years’ past.Read more >

ON THIS DATE: In 1773, nearly 350 chests of tea were dumped into Boston Harbor off of British ships by Colonial patriots disguised as Indians. The act was to protest taxation without representation and the monopoly the government granted to the East India Company. In 1901, “The Tale of Peter Rabbit,” by Beatrix Potter, was printed for the first time. In 1905, Sime Silverman published the first issue of “Variety.” In 1944, during World War II, the Battle of the Bulge began in Belgium. In 1972, the Miami Dolphins became the first 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 1981, the U.S. Congress restored the $122 minimum monthly social security benefit for current recipients. 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 2000, U.S. President-elect George W. Bush selected Colin Powell to be the first African-American secretary of state.

 

WEDNESDAY WISDOM: “Memories of our lives, of our works and our deeds will continue in others.”—Rosa Parks
Share the good news with a friend! Pass the Dash along – and tell your friends/associates they can sign up for their own copy.Read more >

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

Advertising: advertise@strategic-i.com

Subscribe to NEWSDash, click here .

To unsubscribe, click here.

BrightScope / CIO / FWW / Investor Economics / LiquidMetrix / Market Metrics / Matrix Solutions / PLANADVISER / Plan For Life / PLANSPONSOR / Simfund