Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
February 13th, 2018
Benefits & Administration
Plan Sponsors Pushing Boundaries of Auto Features
Availability and use of automatic enrollment has increased dramatically the last 10 years—from 35.6% of plans using the feature in 2007 to 59.7% using it in 2016—according to the Plan Sponsor Council of America’s (PSCA) 60th Annual Survey of Profit Sharing and 401(k) Plans, reflecting 2016 plan experience. Three percent of pay was the most common default deferral rate for auto enrollment for years, but plans have started moving to higher default rates in an effort to help increase savings rates and boost overall participant outcomes. More plans are auto enrolling at a greater than 3% default deferral rate, and 13% of plans are increasing deferrals at more than 1% annually. Read more >
Monitoring the Details Behind Retirement Plan Websites
Retirement plan websites are an important part of retirement plan participants’ experience and engagement with their plans. However, puzzling industry terms, an absence of necessary links or even material typically found on these sites being incorrect can give even the most internet-savvy participant a headache. And yet it’s not just those three errors that participants face when accessing retirement plan websites. Creating an engagement level and relatable content for participants is another feature plan sponsors will typically oversee, says Michael Webb, vice president of Cammack Retirement. Read more >
Many Employers Plan to Use Tax Breaks on Compensation, Benefits
Twenty-nine percent of employers plan to use additional capital from recent tax reform for employee compensation and benefits, according to a survey from Aon. Of this group, 25% said they will increase the company match to their 401(k) plans. Aon also surveyed 2,079 employees to learn how they would like to see that money allocated. Read more >
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Industry Voices
To Prioritize Retirement Saving May Not Be Best for All Workers
Bob Armour, chief marketing officer (CMO) of Jellyvision, says encouraging all of your employees to put as much as they can into their defined contribution (DC) plan may be causing more harm than good. Many may need to set up an emergency fund or pay off debt first. Armour offers scenarios for targeted messaging DC plan sponsors can offer participants to help them do the right thing. He also suggests what resources plan sponsors could use to help employees with their financial decisions. Read more >
Products, Deals and People
Financial Wellness 360 Unveiled by Securian Financial
Now available to all current and prospective Securian group insurance employer customers is the new Financial Wellness 360 program, comprised of three underlying solutions aimed at improving employees’ ability to manage money, both today and into the future. Read more >
Market Mirror

Yesterday, the Dow climbed 410.37 points (1.70%) to 24,601.27, the NASDAQ gained 107.47 points (1.56%) to finish at 6,981.96, and the S&P 500 closed 36.45 points (1.39%) higher at 2,656.00. The Russell 2000 was up 13.15 points (0.89%) at 1,490.98, and the Wilshire 5000 increased 367.22 points (1.35%) to 27,526.61.

 

The price of the 10-year Treasury note was down 1/32, increasing its yield to 2.858%. The price of the 30-year Treasury bond was up 7/32, decreasing its yield to 3.146%.

Compliance
Bill Aims to Expand HDHP Coverage for Chronic Disease Management
The bill would permit high-deductible health plans (HDHPs) to provide chronic disease prevention and treatment—which some say is critical to reducing health care costs—prior to participants having met their deductible. Read more >
From the Magazine
Insights: Goals Within Limits
When was the last time you evaluated your plan to see whether many of your employees are being told to save 10% to 15% of income only to find that, due to statutory limits, they can’t reach that target? Read more >
Small Talk

ON THIS DATE: In 1741, “The American Magazine,” the first magazine in the U.S., was published in Philadelphia, Pennsylvania. In 1889, Norman Coleman became the first U.S. Secretary of Agriculture. In 1900, the Anglo-German accord of 1899 was ratified by Reichstag, in which Britain renounced rights in Samoa in favor of Germany and the U.S. In 1914, the American Society of Composers, Authors and Publishers (ASCAP) was formed in New York City. The society was founded to protect the copyrighted musical compositions of its members. In 1935, in Flemington, New Jersey, a jury found Bruno Richard Hauptmann guilty of the kidnapping and death of the infant son of Charles and Anne Lindbergh. In 1945, during World War II, Allied aircraft began bombing the German city of Dresden. In 1965, sixteen-year-old Peggy Fleming won the ladies senior figure skating title at Lake Placid, New York. In 1990, in Ottawa, the United States and its European allies forged an agreement with the Soviet Union and East Germany on a two-stage formula to reunite Germany. In 2000, Charles M. Schulz’s last original Sunday “Peanuts” comic strip appeared in newspapers. In 2002, former New York mayor Rudolph Giuliani received an honorary knighthood from Queen Elizabeth II.

TRIVIAL PURSUITS: What is the difference between a green olive and a black olive? Read more >
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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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