Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
December 18th, 2014
Benefits & Administration
The Future of Tech and Services for Retirement Plans
Many retirement plan service providers are investing in technology to link and leverage data from banks, insurers and other places where participants hold assets outside their retirement accounts. “I’m expecting differentiation in the coming years that will see leading plan provider Internet sites become highly responsive and customizable for the individual participant,” says Gary Josephs, managing principal at Retirement Benefits Group. Josephs tells PLANSPONSOR that significant industry attention is fixed on the notion of creating “a holistic eMoney overlay right inside the plan portal.”Read more >
MOSER Participants’ Accounts Hacked
The Missouri State Employees Retirement System (MOSERS) reported that someone gained “unauthorized access” to four members’ accounts. The hacker or hackers filled out online forms that required the use of the members’ Social Security numbers, retirement identification numbers and passwords, according to news reports. Candy Smith, the retirement system’s communication and strategic planning coordinator, told the Jefferson City News Tribune attempts to get money were detected, and no money was released.Read more >
NCR Corporation has entered into an agreement with Principal Life Insurance Company under which it purchased a single premium group annuity contract from The Principal to secure approximately $160 million of benefits for about 4,500 former employees or their related beneficiaries who commenced monthly pension benefits under the plan before January 1, 1994.Read more >
Little Change in Retirement Assets in Q3
The Investment Company Institute’s (ICI’s) latest quarterly assessment shows retirement assets account for 36% of all household financial assets in the United States. Total U.S. retirement assets were $24.2 trillion as of September 30, 2014, about unchanged from the end of June, according to the ICI’s Q3 Retirement Update. The data suggests unfunded liabilities are a larger issue for government DB plans than for private-sector DB plans.Read more >
MetLife Inc. announced it has signed an agreement with TRW Automotive, a subsidiary of TRW Automotive Holdings Corp, for MetLife to provide pension benefits to 7,045 retirees and current beneficiaries in TRW’s defined benefit plan. The $440 million transaction follows TRW’s announcement last month that the company had entered into a partial buy-out agreement with Legal & General Assurance Society related to £2.5 billion ($3.9 billion) of its U.K. pension scheme. Both transactions are part of TRW’s overall plan to reduce its pension liabilities in the U.K., U.S. and Canada.Read more >
EBSA Head Lisa Gomez Says DOL Continues Honing Retirement Security Rule
Data and Research
Early Withdrawals Found to Exacerbate 401(k) Account Disparities Across Race, Gender
Final Fiduciary Rule Expected Soon
CDHPs Make Employees More Cost-Conscious
About 15% of the U.S. population, representing 26 million individuals with private insurance, is currently enrolled in a consumer-driven health plan (CDHP), according to the 2014 Employee Benefit Research Institute (EBRI)/Greenwald & Associates Consumer Engagement in Health Care Survey (CEHCS). The survey finds that CDHP enrollees were more cost conscious in their decision making than those in traditional plans.Read more >
Sponsored message from Russell
Star manager concerns? Expand your manager universe.
Russell’s multi-manager, multi-strategy funds simplify the manager change process for DC plans. No long searches; no costly transitions. Consider the benefits of multi-manager.Read more >
Products, Deals & People
Acadian Asset Management, an investment management firm specializing in active global and international equity strategies, has hired Seth Weingram to serve at its Boston headquarters. As senior vice president, strategist, Weingram will engage with clients, discussing Acadian’s views about market developments and current topics in quantitative investing.Read more >
CLS Investments, an investment adviser in Omaha, has upgraded its (k)Star program. The upgraded program allows plan sponsors to build 401(k) plans from the ground up with multiple service providers—instead of taking a pre-packaged, bundled offering.Read more >
Pentegra Retirement Services announced the addition of Philip Gould, serving as a regional director for qualified plan sales. Gould brings more than 15 years of experience to Pentegra, a provider of retirement plan and fiduciary outsourcing solutions. He is tasked with leading business development efforts in Texas markets.Read more >
Economic Events

On a seasonally adjusted basis, the Consumer Price Index for All Urban Consumers (CPI-U) declined 0.3% in November after being unchanged in October. The index for all items less food and energy increased 0.1% in November after rising 0.2% in October.

Real average hourly earnings rose 0.6% in November, seasonally adjusted. Average hourly earnings increased 0.4% and the CPI-U decreased 0.3%. Real average weekly earnings increased 0.9% over the month.

Market Mirror

Following a statement from the Federal Reserve, which reflected general confidence about U.S. growth, the Dow climbed 282.79 points (1.69%) Wednesday, to 17,356.87. The NASDAQ gained 96.48 points (2.12%) to finish at 4,644.31, and the S&P 500 rose 40.14 points (2.03%) to 2,012.88. The Russell 2000 increased 35.46 points (3.11%) to 1,174.83, and the Wilshire 5000 soared 455.49 points (2.20%) to 21,158.58.

On the NYSE, 3.2 billion shares traded, with advancing issues outnumbering declining issues more than 7 to 1. On the NASDAQ, 2.8 billion shares changed hands, with a near 4 to 1 lead for advancers.

The price of the 10-year Treasury note fell 22/32, increasing its yield to 2.138%. The price of the 30-year Treasury bond decreased 21/32, bringing its yield up to 2.722%.

DOL Releases Form 5500 Advanced Copies
The Department of Labor’s Employee Benefits Security Administration (EBSA), the Internal Revenue Service (IRS) and the Pension Benefit Guaranty Corporation (PBGC) released advance informational copies of the 2014 Form 5500 annual return/report and related instructions. Linda Fisher, principal of Linda T. Fisher Form 5500 Consulting in Chicago, and a self-professed Form 5500 enthusiast, says plan sponsors will welcome one change.Read more >
Small Talk
ON THIS DATE: In 1620, the British ship Mayflower docked at modern-day Plymouth, Massachusetts, and its passengers prepared to begin their new settlement, Plymouth Colony. In 1777, the United States celebrated its first national day of thanksgiving, commemorating the American victory at the Battle of Saratoga after the surrender of General John Burgoyne and 5,000 British troops in October of that year. In 1787, New Jersey became the third state to ratify the U.S. Constitution. In 1865, the U.S. House of Representatives passed the 13th Amendment to the Constitution, abolishing slavery in America. In 1968, the musical film “Chitty Chitty Bang Bang” opened in New York City. In 1971, Apollo 14, piloted by astronauts Alan B. Shepard Jr., Edgar D. Mitchell, and Stuart A. Roosa, was successfully launched from Cape Canaveral, Florida, on a manned mission to the moon. In 1974, the pioneering movie producer Samuel Goldwyn died in his sleep at the age of 91, at his home in Los Angeles. In 1990, the Soviet Union’s first McDonald’s fast food restaurant opened in Moscow. In 2009, General Motors announced that it would shut down its Saab brand.
SURVEY SAYS: Over the years, our Favorite Holiday Movie survey has been very popular with readers. However, running the survey annually tends to produce very similar results. So, to change things up, as an alternate this year, I’d like to know, what is your favorite holiday song? Choose from the list or submit your own. You may respond to this week’s survey by 6 p.m. Pacific time today.Read more >
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 >

News from


Copyright © Asset International, Inc., 2014.

All rights reserved.  No reproduction without prior authorization.

Editorial: Alison Cooke Mintzer


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