Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
December 7th, 2016
Benefits & Administration
DC Plan Participants Would Like to Fund Emergency Savings First
Two-thirds of workers are interested in a proposal that an automatic emergency savings account could be funded up to a specific amount, after which time the money would automatically go into their defined contribution (DC) plan.Read more >
Americans Lagging on Retirement Savings
Fifty-one percent of Americans worry about their financial situation and only 37% are confident they are track for a comfortable retirement, according to the 2016 EY Financial Wellness Assessment, based on a survey of 4,000 people conducted between August and October. However, the survey finds they are managing bills and debt.Read more >
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2021 Health Savings Account Survey
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Health Care Costs in Retirement Remain a Top Stressor
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2020 Recordkeeping Survey
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SECURE Act 2.0 Passed Unanimously by Ways and Means Committee
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TRIVIAL PURSUITS: What do the M’s stand for in M&Ms?
Are HSAs Set to Follow Growth of 401(k)s?
As saving for health care costs in retirement gains more focus, will the adoption of health savings accounts rise to match that of 401(k) plans?Read more >
Ask the Experts
Can Unused Vacation/Sick Time Be Deferred to 457 Plans?
“I have a retiring employee who is eligible to receive a significant cash payout of unused sick/vacation time shortly after she retires. I realize that she may defer such compensation into our 403(b) plan subject to the 415 limit rules regarding unused/sick vacation pay (and the plan terms allow it). However, she will not be able to defer the full amount of sick/vacation pay into the 403(b) plan without exceeding the 402(g) limit. We have a 457(b) plan for which she is eligible as well; could she defer the remainder into that plan, even though the payout will be made following termination of employment?”Read more >
Sponsored message from Vanguard
Vanguard Life-Cycle Investing Model: Building target-date portfolios
New tools from Vanguard can help determine if plan participants could benefit from a glide path designed for unique participant populations. Vanguard explains the inner workings of their proprietary model for glide path construction.Read more >
Economic Events
New orders for manufactured durable goods in October, up four consecutive months, increased $10.6 billion or 4.6% to $238.8 billion, down from the previously published 4.8% increase, the Census Bureau reported. This followed a 0.3% September increase. Transportation equipment, also up four consecutive months, led the increase, $9.4 billion or 12% to $88.1 billion. New orders for manufactured nondurable goods increased $2.0 billion or 0.9% to $230.7 billion.
Market Mirror

Tuesday, the Dow closed 35.54 points (0.18%) higher at 19,251.78, the NASDAQ increased 24.11 points (0.45%) to 5,333.00, and the S&P 500 was up 7.52 points (0.34%) at 2,212.23. The Russell 2000 climbed 14.88 points (1.11%) to 1,352.66, and the Wilshire 5000 gained 100.19 points (0.43%) to finish at 23,195.68.

On the NYSE, 3.1 billion shares changed hands, and on the NASDAQ, 2.9 billion shares traded, with advancing issues outnumbering declining issues more than 2 to 1 on both exchanges.

The price of the 10-year Treasury note was up 3/32, decreasing its yield to 2.389%. The price of the 30-year Treasury bond was down 6/32, increasing its yield to 3.076%.
Compliance
DOL Asked to Cease Implementation of Fiduciary Rule
Senator Ron Johnson asked Labor Secretary Tom Perez to cease implementation of a rule “that will very likely be rescinded.”Read more >
Investing
DC Plans Use Passive Investments for Fiduciary Ease
A new survey report from Cerulli Associates examines how the unprecedented number of lawsuits being filed against 401(k) and other defined contribution (DC) retirement plan sponsors and providers have impacted the pace of innovation. Rightly or wrongly, Jessica Sclafani, associate director at Cerulli, observes, nearly one-quarter of plan sponsors select passive investment options because they are “easier for a fiduciary to monitor.” She adds, “If they are choosing a passive investment option simply because it is less work for them, this is not in line with the spirit of ERISA.”Read more >
Small Talk
A survey reveals some embarrassing things managers did at an office holiday party. Among them—tried walking across a swimming pool and—not surprisingly—fell into it, and took inappropriate pictures in a photo booth.Read more >

ON THIS DATE: In 1787, Delaware became the first state to ratify the U.S. constitution becoming the first of the United States. In 1796, John Adams was elected to be the second president of the United States. In 1836, Martin Van Buren was elected the eighth president of the United States. In 1926, the gas operated refrigerator was patented by The Electrolux Servel Corporation. In 1941, Pearl Harbor, located on the Hawaiian island of Oahu, was attacked by nearly 200 Japanese warplanes. The attack resulted in the U.S. entering into World War II. In 1972, Apollo 17 was launched at Cape Canaveral. It was the last U.S. moon mission. In 1987, Soviet leader Mikhail S. Gorbachev came to the U.S. for a Washington summit with U.S. President Reagan. In 1989, East Germany’s Communist Party agreed to cooperate with the plan for free elections and a revised constitution.

 

WEDNESDAY WISDOM: “A healthy attitude is contagious but don’t wait to catch it from others. Be a carrier.”—Tom Stoppard, British playwright
Share the good news with a friend! Pass the NewsDash along—and tell your friends/associates they can sign up for their own copy.Read more >

Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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