Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
December 31st, 2018

Editor’s Note: As we close out 2018, we look back at some of the most popular stories among PLANSPONSOR readers. Thank you for making PLANSPONSOR the leading source of information and insights for retirement plan sponsors. Happy New Year!
Benefits & Administration
Retirees Say Income Replacement Needed Not As High As Pre-Retirees Think
Retirees are considerably less concerned than pre-retirees about their money lasting throughout retirement; they worry more about declining health, according to a survey by Massachusetts Mutual Life Insurance Co. Ninety-one percent of retirees are confident their savings will last throughout their lifetime, compared to only 56% of pre-retirees. Read more >
A Shift in Educating Participants—What Is Financial Wellness?
For years, education and communications for participants centered on investing themes; times have changed, however, and the topic of “financial wellness” is clearly gaining favor. While the interest in financial wellness among retirement plan sponsors is clear, that doesn’t mean the trend is easy to define or measure. Indeed, as noted by a panel of industry experts convened on the second day of the 2018 PLANSPONSOR National Conference, the real challenge for the industry is to make sense of what financial wellness is—and how to make the most of it for participants. Read more >
Retirees Find Creating a Drawdown Strategy Is Complex
“Having a plan in place to manage their finances can help retirees feel confident about spending their assets and address the fears that may be holding them back,” says Marcy Keckler, vice president of financial advice strategy at Ameriprise Financial. Read more >
MOST READ ARTICLES
1
HSA Savings for Seniors Who Want to Work Longer
2
J.P. Morgan Agrees to Settle Stable Value Funds Suit
3
Communicating Retirement Benefits to Five Generations of Workers
4
Congress Urged to Act Soon on Union Pension Funding Crisis
5
2019 PLANSPONSOR National Conference
PSNC 2018: Spending in Retirement and Financial Shocks – Fact and Fiction
The Employee Benefit Research Institute’s (EBRI)’s Lori Lucas tells PLANSPONSOR National Conference attendees that retirees actually spend less than the industry suggests employees save for retirement, and there are different reasons for that. Read more >
PSNC 2018: The Importance of Educating Investment Committees
Two retirement industry professionals reviewed best practices for investment committee members. Read more >
Retirement Industry Leaders Discuss Top Trends
Day One of this year’s PLANSPONSOR National Conference (PSNC) included a summary of the most widely discussed subjects in the retirement industry. Led by seasoned veterans in the institutional retirement planning space, Drew Carrington, head of institutional defined contribution – U.S. at Franklin Templeton, and Michael Knowling, head of client relations and business development at Prudential Retirement, the discussion delved into the eight topics that, they’ve found, for sponsors are most top of mind—from financial security in today’s economy to the use of white label funds and collective investment trusts (CITs) in retirement plan investment menus. Read more >
Sponsored message from Schwab Retirement Plan Services, Inc.
Participants Speak to the Power of Advice
Among the many challenges of sponsoring a defined contribution retirement savings plan, keeping up with the concerns and expectations of plan participants ranks high on the list. Read more >
Economic Events

THE ECONOMIC WEEK AHEAD: Thursday, the Labor Department will issue its initial claims report. Friday, the Bureau of Labor Statistics will reveal the unemployment rate for December.

Market Mirror

Friday, the Dow declined by 76.42 points (0.33%) to 23,062.40, the NASDAQ rose by 5.03 points (0.08%) to 6,584.52, and the S&P 500 was down by 3.09 points (0.12%) at 2,485.74. The Russell 2000 ticked up by 6.11 points (0.46%) to 1,337.92, and the Wilshire 5000 inched downward by 10.46 points (0.04%) to 25,541.17.

 

The price of the 10-year Treasury note was up 15/32, decreasing its yield to 2.718%. The price of the 30-year Treasury bond was up 21/32, decreasing its yield to 3.025%.

 

WEEK’S WORTH: For the week ended December 28, the Dow rose by 2.75%, the S&P 500 was up by 2.86%, and the NASDAQ gained 3.97%. The Russell 2000 rose by 3.55%, and the Wilshire 5000 gained 3.02%.

Compliance
Non-ERISA 403(b)s Could Be Affected by SEC Conflict of Interest Proposal
The Wagner Law Group says non-ERISA 403(b) plans may satisfy the definition of “retail customer” in the Securities and Exchange Commission’s (SEC)’s Regulation: Best Interest section of its proposal. Read more >
Ask the Experts
How to Match When Deferrals Are Front-Loaded
“I work for a 403(b) plan sponsor, and have recently encountered a situation when a few individuals have front-loaded their elective deferrals to the 403(b) plan, so that have recently met the 402(g) limit, even though were are less than halfway through the year. Our payroll system appropriately cut off these participants at the 402(g) limit, so there are no excess deferrals to address. However, because we have a matching contribution that matches elective deferrals each pay period, their match ceased when the elective deferrals ceased, resulting in these employees not receiving their full matching contribution for the year. How do we address this issue, if at all?” Read more >
Small Talk

ON THIS DATE: In 1862, President Abraham Lincoln signed an act admitting West Virginia to the Union. In 1891, New York’s new Immigration Depot was opened at Ellis Island, to provide improved facilities for the massive numbers of arrivals. In 1897, Brooklyn, New York, spent its last day as a separate entity before becoming part of New York City. In 1929, Guy Lombardo and his Royal Canadians played “Auld Lang Syne” as a New Year’s Eve song for the first time. In 1946, President Harry Truman officially proclaimed the end of hostilities in World War II. In 1961, in the U.S., the Marshall Plan expired after distributing more than $12 billion in foreign aid.

 

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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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