Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
February 2nd, 2017
Benefits & Administration
Gen Xers, Baby Boomers Feel Need to Save More for Retirement
More than three-quarters of Generation X and Baby Boomers strongly agree (38%) or somewhat agree (39%) that they need to save more to afford the retirement they want. Among those who report having little in retirement savings, 59% say they don’t have enough or make enough money to save, while nearly one-quarter (24%) indicate they plan to rely on Social Security. Read more >
Industry Voices
Barry’s Pickings Online: Welcome to Trump-World
Michael Barry, president of the Plan Advisory Services Group, discusses how certain Trump priorities could affect retirement plans. Read more >
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Products, Deals and People
Culturally relevant education at work and online is helping Hispanic employees learn more and save more for retirement, according to new data from Principal Financial Group. Principal created the Hispanic Market Program to provide specialized retirement education for employers with large Hispanic workforces. Read more >
Empower Retirement announced the launch of a new qualified default investment alternative (QDIA) for retirement plans that is “designed to help plan participants whose retirement planning needs change over time.” Defined contribution (DC) plan participants are first put into a TDF, then upon certain triggers, moved to a managed account. Read more >
Economic Events

The U.S. Census Bureau of the Department of Commerce announced that construction spending during December 2016 was estimated at a seasonally adjusted annual rate of $1,181.5 billion, 0.2% below the revised November estimate of $1,184.4 billion. The December figure is 4.2% above the December 2015 estimate of $1,133.7 billion.

Market Mirror

Wednesday, the Dow increased 26.85 points (0.14%) to 19,890.94, the NASDAQ closed 27.86 points (0.50%) higher at 5,642.65, and the S&P 500 was virtually unchanged at 2,279.55. The Russell 2000 was virtually unchanged at 1,361.22, and the Wilshire 5000 was down 2.22 points (0.01%) at 23,849.43.

On the NYSE, 3.1 billion shares changed hands, and on the NASDAQ, 2.9 billion shares traded, with a slight lead for declining issues on both exchanges.

The price of the 10-year Treasury note was down 5/32, increasing its yield to 2.475%. The price of the 30-year Treasury bond decreased 10/32, bringing its yield up to 3.083%.

Compliance
Court Denies PBGC’s Efforts to Recoup Plan Termination Liabilities
A federal court judge has concluded that the Pension Benefit Guaranty Corporation (PBGC) cannot recoup termination liabilities for a single-employer plan from a personal trust of the owner or the asset purchasers of the sponsoring company. Read more >
PBGC Adjusts Penalties for Reporting Failures
As required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, the Pension Benefit Guaranty Corporation (PBGC) is adjusting monetary penalties for failure to provide certain reporting. Read more >
Investing
Plan Sponsors Must Carefully Look 'Under the Hood' of TDFs
With different underlying allocations and fee structures, it is up to plan sponsors and their supporting advisers and consultants to select the proper TDF approach for their participants’ unique preferences and needs. Read more >
Small Talk

ON THIS DATE: In 1653, New Amsterdam, now known as New York City, was incorporated. In 1848, the Mexican War was ended with the signing of the Treaty of Guadalupe Hidalgo. The treaty turned over portions of land to the U.S., including Texas, New Mexico, Nevada, Utah, Arizona, California and parts of Colorado and Wyoming. The U.S. gave Mexico $15,000,000 and assumed responsibility of all claims against Mexico by American citizens. Texas had already entered the U.S. on December 29, 1845. In 1876, the National League of Professional Base Ball Clubs (known as the National League) was formed in New York. The teams included were the Chicago White Stockings, Philadelphia Athletics, Boston Red Stockings, Hartford Dark Blues, Mutual of New York, St. Louis Brown Stockings, Cincinnati Red Stockings and the Louisville Grays. In 1887, the first Groundhog Day ceremony was held in Punxsutawney, Pennsylvania. In 1892, William Painter patented the bottle cap. In 1950, “What’s My Line” debuted on CBS television. In 1967, the American Basketball Association was formed by representatives of the NBA. In 1998, U.S. President Bill Clinton introduced the first balanced budget in 30 years.

SURVEY SAYS: Defined contribution plan sponsors offering overall financial wellness to employees is a growing trend these days. This week, I’d like to know, do YOU feel financially well, what kind of financial wellness help could you use, and does your company offer overall financial wellness education/tools for employees? You may respond to this week’s survey by 6 p.m. Pacific time today. 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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