Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
February 13th, 2019
Benefits & Administration
Survey Reveals How Employers Can Improve Wellbeing Program Outcomes
A survey shows that employers can improve the wellbeing experience of employees by taking a more personalized approach, which will engage employees and reduce medical costs. Welltok surveyed more than 1,000 full-time workers ages 21 and older across the U.S in December with independent research firm Ipsos and found 56% of employees say the health and wellbeing programs offered by their employers are irrelevant, wasting company time and money. Delivering more personalized programming would motivate 82% of employees to participate more. Employees also want more digital experiences.Read more >
Health Shocks Drive Many to Retire Earlier Than Planned
Center for Retirement Research at Boston College (CRR) researchers find health shocks play the largest role in causing early retirements, both because people in bad initial health overestimate how long they can work and because health often worsens before the age at which they planned to retire.Read more >
New Financial Audit Rule Increases Requirements for Plan Sponsors
2021 Recordkeeping Survey
Data and Research
Participants Missing the Full Match Remains a Big Problem
Ask the Experts
Difference Between Investment in Annuity and Annuity Distribution
“I have just been contacted be an employee who is retiring who wishes to initiate the process of ‘annuitizing’ her benefit when she retires. I am relatively new to working with our 403(b) plan and am confused, as our 403(b) plan only offers annuity investments. Isn’t an annuity automatic?”Read more >
Market Mirror

Tuesday, the Dow climbed 372.65 points (1.49%) to 25,425.76, the NASDAQ closed 106.71 points (1.46%) higher at 7,414.62, and the S&P 500 increased 34.93 points (1.29%) to 2,744.73. The Russell 2000 was up 19.25 points (1.27%) at 1,538.23, and the Wilshire 5000 gained 358.56 points (1.28%) to finish at 28,462.48.

The price of the 10-year Treasury note was down 7/32, increasing its yield to 2.681%. The price of the 30-year Treasury bond decreased 14/32, bringing its yield up to 3.015%.

Hearing Witnesses Offered Recommendations to Promote Retirement Savings
Recommendations included conducting a comprehensive review of the American retirement system, educating small employers about plan options, allowing for open multiple employer plans (MEPs), changing certain defined contribution (DC) plan rules to facilitate greater savings, and increasing financial and retirement education, especially for women.Read more >
From the Magazine
Is Your QDIA Still a Good Fit?
The Pension Protection Act of 2006 (PPA), which amended the Employee Retirement Income Security Act (ERISA), provides a safe harbor for plan sponsor fiduciaries that invest participant assets in qualified default investment alternatives (QDIAs) in the absence of participant investment direction. According to the 2018 PLANSPONSOR Defined Contribution (DC) Survey, most defined contribution plan sponsors (73.3%) have chosen a target-date fund (TDF) series as the QDIA, but balanced funds and professionally managed accounts are also explicitly acknowledged in the regulations. As with any investment in a defined contribution plan’s lineup, the QDIA must be regularly monitored and, if necessary, changed.Read more >
Small Talk
New data from Global Atlantic Financial Group’s Retirement Spending Study shows that retirees who are married or living with a significant other have fewer financial regrets than those who are single. They also report more diverse sources of income and fewer cut backs on discretionary spending.Read more >

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 1914, the American Society of Composers, Authors and Publishers (known as 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. Hauptmann was later executed for the crimes. In 1945, during World War II, Allied aircraft began bombing the German city of Dresden. In 1965, 16-year-old Peggy Fleming won the ladies senior figure skating title at Lake Placid, New York. In 1971, South Vietnamese troops invaded Laos, backed by U.S. air and artillery support. 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. Schulz had died the day before. In 2002, former New York mayor Rudolph Giuliani received an honorary knighthood from Queen Elizabeth II.


WEDNESDAY WISDOM: “Treasure the love you receive above all. It will survive long after your good health has vanished.”—Og Mandino, American author

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Editorial: Alison Cooke Mintzer


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