Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
December 27th, 2017
Benefits & Administration
EBRI Data Delivers Fresh Retirement Health Care Cost Concerns
Retired couples, according to EBRI research, can require up to $370,000 to cover premiums for Medicare Parts B and D, premiums for Medigap Plan F, and out-of-pocket spending for outpatient prescription drugs. Read more >
Industry Voices
Target-Date Funds Could Be Costing Your Plan More Than You Know
Michael Schultz, RFC, CFS, president, Venn Wealth & Benefit Services discusses variables that should be considered when doing due diligence on TDFs. Read more >
Products, Deals and People
ICMA-RC Enhances Participant and Plan Administrative Portals
ICMA-RC, a financial services company that focuses on serving public-sector retirement plans, has upgraded its public website, as well as its participant and plan administration portals. Read more >
Retirement Industry People Moves
Mercer Reveals Leadership Changes in Its Wealth and Health Hemisphere; Milwaukee Institutional Announces Boston Location Led by VP; BPOC Acquires Zenith American; and more. Read more >
MOST READ ARTICLES
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Financial Wellness Programs Boost Engagement and Loyalty
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Brief in University of Pennsylvania 403(b) Lawsuit Points Out Differences From 401(k)s
3
Slower Spending in Retirement Has Implications for Retirement Products, Education
4
$280K Is What a Couple Retiring This Year Will Need to Cover Health Care
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Hearing Witnesses Lay Out How Multiemployer Pensions Got Where They Are
Market Mirror

Tuesday, the Dow was down 7.85 points (0.03%) at 24,746.21, the NASDAQ closed 23.71 points (0.34%) lower at 6,936.25, and the S&P 500 decreased 2.84 points (0.11%) to 2,680.50. The Russell 2000 was up 1.30 points (0.08%) at 1,544.23, and the Wilshire 5000 was down 14.67 points (0.05%) at 27,850.17.

 

The price of the 10-year Treasury note was up 3/32, decreasing its yield to 2.472%. The price of the 30-year Treasury bond increased 10/32, bringing its yield down to 2.818%.

Sponsored message from HSA Bank
Health Savings Accounts: Bridging the Retirement Savings Gap Learn why HSAs are gaining recognition as one tool to help employees plan for retirement savings. Read more >
Compliance
Tax Reform Bill Could Impact ESOP Deductions
The Tax Cuts and Job Act does not change legislation for Employee Stock Ownership Plans (ESOPs) but it could have some indirect effects with regards to their taxes, according to an Employee Ownership Update written by Loren Rogers, executive director of the National Center for Employee Ownership. Read more >
New EBSA Leader Preston Rutledge Takes Up Trump Agenda
The U.S. Department of Labor (DOL) now has a new head of the Employee Benefits Security Administration (EBSA) in Preston Rutledge—the former senior tax and benefits counsel on the Majority Tax Staff of the Senate Finance Committee, and top aide to Republican Senator Orrin Hatch. The role of head of EBSA, formally called the “Assistant Secretary of Labor for the Employee Benefits Security Administration,” puts Rutledge at the helm of one of the lead regulatory bodies tasked with policing the tax-qualified retirement investing industry. Read more >
ERISA Litigation Shows No Sign of Slowing in 2018
According to Nancy Ross, partner and head of the Employee Retirement Income Security Act (ERISA) litigation practice at Mayer Brown LLP in Chicago, the last year in litigation has seen a continued shift away employer stock drop cases in favor of excessive fee cases. Ross notes that these excessive fee cases have started to divide themselves fairly neatly into a few different categories. Proprietary fund lawsuits are viewed by plaintiffs’ firms as one of the types of excessive fee cases that are likely to get past motions to dismiss; and so it stands to reason that more—potentially many more—of these lawsuits are on the way. Read more >
Investing
Tactical Asset Allocation Can Protect TDFs From Market Disruptions
The wisdom of setting a predetermined glidepath for the asset allocation trajectory of a target-date fund (TDF) that can span 30 or 40 years could be questioned when there are disruptions in the market. This is why some TDF providers are dedicating modest amounts of their portfolios to tactical asset allocation. Read more >
Small Talk
According to The National Sleep Foundation, adults younger than 65 should get seven to nine hours of sleep every night, yet 30% of employed adults report getting less than seven hours, according to a report by StayWell. The firm’s study, Sleep’s Impact on the Modern Workplace, found too little or too much sleep diminishes workplace productivity. Compared to employees who report eight hours of sleep nightly, employees averaging less than five hours of sleep missed approximately 1.5 times more workdays due to illness, and reported 1.9 times higher productivity loss during the workday. Read more >

ON THIS DATE: In 1831, Charles Darwin set out on a voyage to the Pacific aboard the HMS Beagle. Darwin’s discoveries during the voyage helped him form the basis of his theories on evolution. In 1845, Dr. Crawford Williamson Long used anesthesia for childbirth for the first time. The event was the delivery of his own child in Jefferson, Georgia. In 1904, James Barrie’s play “Peter Pan” premiered in London. In 1945, The World Bank was created with an agreement signed by 28 nations. In 1947, the children’s television program “Howdy Doody,” hosted by Bob Smith, made its debut on NBC. In 1951, in Cincinnati, Ohio, a Crosley automobile, with a steering wheel on the right side, became the first vehicle of its kind to be placed in service for mail delivery. In 1965, in Fort Lauderdale, Florida, the initial part of the International Swimming Hall of Fame was dedicated. In 1978, Spain adopted a new constitution and became a democracy after 40 years of dictatorship. In 1985, Dian Fossey, an American naturalist famous for a study of mountain gorilla groups, was found murdered at a research station in Rwanda. In 2001, U.S. President George W. Bush granted China permanent normal trade status with the United States. In 2002, North Korea ordered U.N. nuclear inspectors to leave the country and said that it would restart a laboratory capable of producing plutonium for nuclear weapons.

 

WEDNESDAY WISDOM: “The earth is the mother of all people, and all people should have equal rights upon it.”—Chief Joseph, leader of the Wal-lam-wat-kain (Wallowa) band of Nez Perce, a Native American tribe of the interior Pacific Northwest region of the United States

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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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