Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
December 8th, 2017
Benefits & Administration
More DC Plan Sponsors Looking to Outsourced Fiduciary Services
The Department of Labor (DOL) conflict of interest rule provides a tailwind for the adoption of outsourced fiduciary services in the defined contribution (DC) plan market, according to the latest research from Cerulli Associates. There is a spectrum of fiduciary services offered to DC plans, according to Cerulli. “Baked in” 3(21) and 3(38) fiduciary services embedded in the recordkeeper platform are more common to plans with less than $5 million in assets. For the $5 million to $500 million DC plan market, advisers and consultants offering 3(38) discretionary investment advice are more common. For DC plans with greater than $500 million in assets, the outsourced chief investment officer (OCIO) model is most common.Read more >
Majority of Americans Under-Funding Health Care Savings
The majority of health care consumers surveyed by Alegeus are under-funding their health care savings. Though up 18% from last year, the degree of health care savings discipline scored just 25.9 on a 100-point scale, according to Alegeus’ 2017 Consumer Healthcare Savings Index. Only 36% have budgeted to make monthly contributions to their health care savings, and 32% have savings goals to cover long-term health care costs.Read more >
2022 Recordkeeping Survey
IRS Updates Life Expectancy Tables for Retirees
TRIVIAL PURSUITS: How Many States Are in More Than One Time Zone?
TRIVIAL PURSUITS: Meaning and Origin of the Idiom “Watershed Moment?”
TRIVIAL PURSUITS: Which are the most northern, southern, eastern and western U.S. States?
Americans See Employer Role in Retirement Savings and Health Insurance Decreasing
Over the next 10 years, Americans expect the role for individuals and government entities in individuals’ financial security to be larger, according to results of a survey by the American Benefits Council. More than half (52%) think individuals will play a larger role in health insurance and retirement savings, while 45% say the federal government will. However, around one-third say employer-provided benefits will be most important to them within the next 10 years.Read more >
Willis Towers Watson Makes Suggestions for Improving DC Plan Thinking
In a new white paper, “Redefining DC Plans for the Future: Top 10 Updates to our DC Vocabulary for 2018,” Willis Towers Watson delves into the evolving meaning of 10 terms associated with defined contribution (DC) plans today. For example, in the past, sponsors and advisers measured “plan success” by measuring participation, deferral rates and account balances. Today, the focus has shifted to outcomes and participants’ retirement readiness.Read more >
Sponsored message from Natixis
Retirement planning for a better world
62% of plan participants and 71% of millennials surveyed would contribute more to their 401(k) plan if it advanced social good. Now they can. Introducing the Natixis Sustainable Future Funds – the industry’s first ESG-driven target date funds. Join the movement. 1815044.1.1Read more >
Products, Deals and People
Investment Products and Services Launches
State Street launches tool to deliver transparency in ESG investing; Vanguard releases latest fund to complement existing index and ETF offering; and Hartford Funds presents first NextShares fund.Read more >
Economic Events

In the week ending December 2, the advance figure for seasonally adjusted initial claims for unemployment insurance was 236,000, a decrease of 2,000 from the previous week’s unrevised level of 238,000, the Labor Department reported. The four-week moving average was 241,500, a decrease of 750

from the previous week’s unrevised average of 242,250.

The average interest rate for a 30-year fixed-rate mortgage is 3.94%, up from 3.90% one week ago, according to Freddie Mac. The average interest rate for a 15-year fixed-rate mortgage is 3.36%, up from 3.30%.

Market Mirror

Thursday, the Dow increased 70.57 points (0.29%) to 24,211.48, the NASDAQ gained 36.47 points (0.54%) to finish at 6,812.84, and the S&P 500 was up 7.71 points (0.29%) at 2,636.98. The Russell 2000 climbed 11.59 points (0.77%) to 1,520.47, and the Wilshire 5000 closed 113.88 points (0.42%) higher at 27,381.29.

The price of the 10-year Treasury note was down 6/32, increasing its yield to 2.359%. The price of the 30-year Treasury bond decreased 20/32, bringing its yield up to 2.760%.

2017 Required Amendments List Issued by IRS
The Internal Revenue Service (IRS) issued Notice 2017-72 containing the required amendments list for 2017 (2017 RA List). In Revenue Procedure 2016-37 the agency eliminated, as of January 1, 2017, the five-year remedial amendment cycle system for individually designed plans, and also provided that the Department of the Treasury and the IRS intend to publish annually an RA List. The 2017 RA List is light on items.Read more >
Small Talk

ON THIS DATE: In 1776, George Washington’s retreating army in the American Revolution crossed the Delaware River from New Jersey to Pennsylvania. In 1863, U.S. President Abraham Lincoln announced his plan for the Reconstruction of the South. In 1941, the United States entered World War II when it declared war against Japan. In 1987, U.S. President Ronald Reagan and Soviet leader Mikhail S. Gorbachev signed a treaty agreeing to destroy their nations’ arsenals of intermediate-range nuclear missiles. In 1993, U.S. President Bill Clinton signed into law the North American Free Trade Agreement. In 1997, the second largest bank was created with the announcement that Union Bank Switzerland and the Swiss Bank Corporation would merge. The combined assets were more than $590 billion. In 1999, in Memphis, Tennessee, a jury found that Rev. Martin Luther King Jr. had been the victim of a vast murder conspiracy, not a lone assassin.

And now it’s time for FRIDAY FILES!

Present-wrapping tricks.Read more >
This is very similar to how I react when I see a spider.Read more >
Every college band could use this grandma’s enthusiasm and skills at a football game.Read more >

In West Columbia, South Carolina, a man walked into a Waffle House at 3 a.m. and found only one employee in there, whom he says was napping. So, he went behind the counter and cooked his own meal, then left. He admitted to WIS-TV that he was ineb.riated and that he returned later to the restaurant to pay for his meal. The sleeping employee was suspended for one week.


In South St. Paul, Minnesota, police recently received a letter and $1,000 from an anonymous man. Apparently, the sender of the letter sped off after hitting a parked car more than 30 years ago. The Pioneer Press reports that the note says the driver hit a parked car one evening in 1985 or 1986. The sender expressed remorse and requested police try to track down the vehicle’s owner. The note says the money could be donated to a police charity if the victim isn’t located. “I am sorry for any inconvenience that I have caused and I ask for your forgiveness,” the letter says.


In South Portland, Maine, many Christmas shoppers will be delighted to find out their gifts are already paid for. According to WGME-TV, representatives for a Toys R Us store say a husband and wife stopped in to pay off $10,000 in layaway orders for other families. The couple is local and desired to remain anonymous. The money is enough to pay off the balance on about 100 layaway accounts.


In South Hackensack, New Jersey, police pulled over a woman when they noticed a mass transit sign poking out of the roof of her car. The Associated Press reports that the woman didn’t even notice it was there, but police say the sign got stuck in the vehicle when the driver was in Secaucus. Yes, alc.ohol was involved.


In Northport, New York, a woman arrived at a courthouse, pulled into a parking lot, cut off an unmarked police car then parked in a spot clearly identified as reserved for the village’s police chief. According to the Associated Press, when officers asked the woman to roll down her window, pot smoke billowed out. She was at court to face a charge of unlawful possession of mari,juana, and police gave her a second ticket for the same offense.


In Maplewood, New Jersey, a family leaves candy, snacks, tissues, hand warmers and other goodies outside their door every year for delivery people. But, this year, hours after setting them outside their home, they noticed things had been stolen. According to the Associated Press, The thief seemed to be targeting the priciest stuff, including about 25 squares of Ghirardelli chocolate. The family set up a surveillance camera and found the culprit—a very plump squirrel.


Have a very happy weekend, everyone!

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Editorial: Alison Cooke Mintzer


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