December 30th, 2021 Insight on Plan Design & Investment Strategy Every Weekday Investing Rethinking the 60/40 Portfolio Defined benefit and defined contribution plan sponsors need to adjust the composition of the traditional 60/40 portfolio to meet plan and participant goals, experts say. Editor’s Note NewsDash Special Edition Changing old-school thoughts about investing, helping employees with financial security and retirement income, long-awaited regulatory guidance, the effects of retirement plan litigation… these and more are topics of 2021 articles that are among the most-viewed by PLANSPONSOR readers. Most Read Compliance IRS Proposes Regulations for Changes to SECURE 2.0 RMDs Opinions Encouraging Trends in 401(k) Plan Design Compliance What Increased Health Plan-Related Scrutiny Means for Plan Sponsors Data and Research Not Having a Retirement Drawdown Strategy Can Affect Retirement Security A survey finds a majority of retirees are using RMDs for ‘guidance’ about how to spend down their assets, but experts say this doesn’t support spending trends in retirement and doesn’t make the best use of their savings. Benefits Giving Employees the Financial Wellness Help They Want Offering an array of benefits—addressing both physical and financial wellness—and implementing personalized experiences will set employees up with what they need. Administration The Value of Having a Retirement Plan Committee Charter While not required by ERISA, attorneys say a committee charter is a best practice that can help a plan run more smoothly—and help fiduciaries avoid litigation and penalties. Ensuring Clean Participant Data Keeping participant data accurate could help plan sponsors avoid dealing with missing participants or a cybersecurity attack. Market Mirror Wednesday, the Dow gained 90.42 points (0.25%) to finish at 36,488.63, the Nasdaq decreased 15.51 points (0.10%) to 15,766.22, and the S&P 500 closed 6.71 points (0.14%) higher at 4,793.06. The Russell 2000 increased 2.74 points (0.12%) to 2,249.24, and the Wilshire 5000 was up 34.38 points (0.07%) at 48,677.22. The price of the 10-year Treasury note was down 7/32, increasing its yield to 1.561%. The price of the 30-year Treasury bond decreased 1 27/32, bringing its yield up to 1.971%. Compliance DOL Offers Guidance for Locating Missing Participants Guidance in three parts offers suggested processes for DC plans and DB plans and reveals errors DOL staff should look for. Rush of Litigation Against Retirement Plans Expected to Continue One insurer says the more than $1 billion in settlements thus far could make fiduciary insurance a thing of the past. The DOL Has Begun Retirement Plan Cybersecurity Audits Attorneys say the requests plan fiduciaries have received ask for a broad amount of information and documentation, and they urge fiduciaries to act on the DOL’s recent guidance. Plan Document Restatements Essential to Retirement Plan Compliance As Cycle 3 for retirement plan restatements gets underway, sources discuss the purpose of document restatements and what happens if the deadline is missed. New Financial Audit Rule Increases Requirements for Plan Sponsors Plan sponsors will be required to provide much more data, as well as certifications about plan administration and governance, and limited-scope audits will no longer be so limited. IRS Announces 2022 Retirement Plan Contribution and Benefit Limits Most defined contribution plan participants can defer up to $20,500 to plans in 2022. Investing Annuities Aren’t the Only Option for Generating Retirement Income Annuity adoption lags, but there are other ways to help retirement plan participants prepare for income in retirement. Small Talk ON THIS DATE: In 1853, James Gadsden, the U.S. minister to Mexico, and General Antonio Lopez de Santa Anna, the president of Mexico, signed the Gadsden Purchase in Mexico City. The treaty settled the dispute over the location of the Mexican border west of El Paso, Texas, and established the final boundaries of the southern United States. For the price of $15 million, later reduced to $10 million, the U.S. acquired approximately 30,000 square miles of land in what is now southern New Mexico and Arizona. In 1922, in post-revolutionary Russia, the Union of Soviet Socialist Republics (USSR) was established, comprising a confederation of Russia, Belorussia, Ukraine and the Transcaucasian Federation (divided in 1936 into the Georgian, Azerbaijan and Armenian republics). In 1924, Edwin Hubble announced the existence of other galactic systems. In 1953, the first color TV sets went on sale for about $1,175. In 1961, Jack Nicklaus lost his first attempt at pro golf to Gary Player in an exhibition match in Miami. In 1980, “The Wonderful World of Disney” was cancelled by NBC after more than 25 years on the TV. It was the longest-running series in prime-time television history. No SURVEY SAYS this week. Wishing everyone a happy and healthy new year. Many thanks to our readers for a great 2021. NewsDash will be back in your inbox Monday. Did someone forward you this newsletter? Sign up here to get NEWSDash directly in your mailbox! 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