Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
December 4th, 2015
Benefits & Administration
Why Workers Retire Earlier Than Planned
Between 1991 and 2014, the percentage of workers indicating that they planned on working past age 65 increased from 11% to 33%, but for many, these later retirement plans are not actually achieved, a research report from the Center for Retirement Research at Boston College notes. For example, in the Health and Retirement Study’s (HRS) initial cohort, roughly 37% of those working at age 58 retired earlier than they had planned. The researchers used data from the HRS to estimate a model of early retirement and determine the relative importance of four different sets of “shocks” that may induce someone to deviate from their retirement plans.Read more >
Employers are implementing well-being programs to achieve business objectives and address human resources (HR) priorities, according to a survey by Virgin Pulse. More than half of the HR professionals surveyed say they are looking to improve employee engagement (60%), productivity (53%), and organizational culture (52.8%) through well-being, which is no longer being seen as strictly an HR initiative, but rather a business imperative.Read more >

2023 DC Survey Standouts
Understanding Investments and Fees: A Key Part of Plan Committee Education
TIAA In-Plan Retirement Income Option Reaches $30B
Making the Best Auto Enrollment Decisions
There are several factors to consider when deciding whether and how to implement automatic enrollment before making it a done deal. Several decisions need to be made and some processes need to be discussed before implementation. And making the right design decisions can help make auto enrollment work even for plan sponsors with high turnover or cost concerns.Read more >
Analyses from three investment managers shows small decreases in corporate pension plans’ funding status.Read more >
How Participants Can Become Millionaires
It’s a question many people ask themselves during a working career: What would it take for a middle class person to save a million dollars? Prudential suggests one answer in a recently released whitepaper, “Why young investors should start saving early and invest in equities.” As the title indicates, the key for an average-wage earner to one day join the millionaires club is investing in a tax advantaged retirement plan early, consistently, and with a sufficient level of contributions and risk-taking.Read more >
Sponsored message from MetLife
Looking for alternatives for your defined contribution retirement plan?
Visit the Stable Value Educational Hub.Read more >
Industry Voices
Industry Voice: The Next Evolution of 401(k) Plans
Advances in technology now enable employers to provide a retirement savings road map for each participant by leveraging managed accounts as the qualified default investment alternative (QDIA) with the help of their plan adviser. Steve Anderson, president, Schwab Retirement Plan Services, discusses the next evolution of 401(k) plans.Read more >
Products, Deals and People
Anticipating a volume of requests from employees about a new tax form that reports health care offerings and coverage, GuideSpark decided to make introductory communications content available to any U.S. organization, free of charge. The firm is offering a complimentary video solution designed to help employers educate employees about the Internal Revenue Service (IRS) Form 1095-C mandated by the Affordable Care Act (ACA).Read more >
Chairman of The Principal to Retire
Larry Zimpleman, who worked at The Principal Financial Group for 44 years in various roles, will retire in January.Read more >
Economic Events

In the week ending November 28, the advance figure for seasonally adjusted initial claims for unemployment insurance was 269,000, an increase of 9,000 from the previous week’s unrevised level of 260,000, the Labor Department reported. The four-week moving average was 269,250, a decrease of 1,750 from the previous week’s unrevised average of 271,000.

New orders for manufactured durable goods in October, up following two consecutive monthly decreases, increased $6.8 billion or 2.9% to $238.8 billion, down from the previously published 3.0% increase, the Census Bureau announced. Transportation equipment, also up following two consecutive monthly decreases, led the increase, $6.0 billion or 7.9% to $82 billion. New orders for manufactured nondurable goods increased less than $0.1 billion or virtually unchanged to $235.1 billion.

The average interest rate for a 30-year fixed-rate mortgage is 3.93%, down from 3.95% one week ago, according to Freddie Mac. The average interest rate for a 15-year fixed-rate mortgage is 3.16%, down from 3.18%.

Market Mirror

Global markets sank Thursday after the European Central Bank announced stimulus plans that came up short of what investors had forecast. According to the Associated Press, the bond market was especially roiled by the ECB’s move. The Dow lost 252.01 points (1.42%) to finish at 17,477.67, the NASDAQ closed 85.70 points (1.67%) lower at 5,037.53, and the S&P 500 was down 29.89 points (1.44%) at 2,049.62. The Russell 2000 decreased 21.12 points (1.77%) to 1,170.56, and the Wilshire 5000 fell 329.26 points (1.52%) to 21,298.13.

On the NYSE, 3.2 billion shares changed hands, with declining issues outnumbering advancing issues more than 4 to 1. On the NASDAQ, 2.7 billion shares traded, with a more than 3 to 1 lead for decliners.

The price of the 10-year Treasury note decreased 1 7/32, bringing its yield up to 2.318%. The price of the 30-year Treasury bond fell 2 29/32, increasing its yield to 3.057%.

Nonqualified Plan Survey
Attention Nonqualified Plan Sponsors! Our annual nonqualified deferred compensation (NQDC) Survey is closing today, so this is your last chance to participate. All respondents receive a full report of survey results and a summary will be published in February.Read more >
Small Talk

ON THIS DATE: In 1812, Peter Gaillard patented the power mower. In 1918, U.S. President Woodrow Wilson set sail for France to attend the Versailles Peace Conference. Wilson became the first chief executive to travel to Europe while in office. In 1942, U.S. President Franklin D. Roosevelt ordered the dismantling of the Works Progress Administration. The program had been created in order to provide jobs during the Great Depression. In 1945, the U.S. Senate approved American participation in the United Nations. In 1991, Associated Press correspondent Terry Anderson was released after nearly seven years in captivity in Lebanon. In 1991, Pan American World Airways ceased operations.


And now it’s time for FRIDAY FILES!

A man and dolphin get into a spitting fight, and just when you think they make up…Read more >
Let this toddler remind you of the days when the little things thrilled us.Read more >
A seasoned pediatrician shares a technique he says can make any fussy infant stop crying.Read more >

In Tempe, Arizona, a police officer was making his way to the jailhouse when his license plate reader notified him that a reported stolen vehicle had just passed him. The truck stopped at the police department and the driver told the officer that he had borrowed the vehicle to pick his girlfriend up from jail, according to the local ABC News station. The driver was taken into custody.

In Cortland, New York, a man was irate after he left family court. The Cortland Voice reported that he was driving into a while flatbed truck when police found him ramming into other cars. He caused a minor injury to one vehicle occupant, and totaled a probation officer’s SUV, among much other damage. The man was arrested in the parking lot.

In Deyang, China, a fisherman who distrusted financial institutions buried his entire life savings five years ago. When he and his family recently dug it up, they discovered that the plastic bag the bills were in had deteriorated, and worms and insects had eaten through much of his $5,500. According to Yahoo! News, “his local bank—which he didn’t trust to hold his savings in the first place—has come to the rescue, swapping the notes that are in good enough condition for fresh ones,” totaling a little more than half of the man’s money.

Have a great weekend!
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


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