| Benefits & Administration | Helping Participants Save More, Invest Better | The current average 401(k) participant deferral
rate is 7.2%, and that is simply not high enough, according to Joe Ready,
director of Institutional Retirement and Trust at Wells Fargo. Average deferral
rates have been flat over the past three years, according to an analysis of
data from 3.9 million 401(k) eligible employees at companies for whom Wells
Fargo provides 401(k) plans. The number of participants contributing at least
10% (including company match) has increased by less than 3%, from 34.6% in the
fourth quarter of 2011 to 37% in the fourth quarter of 2014. “Of all the
behaviors 401(k) participants can do to improve their retirement outcome, this
is the area with the least improvement but with potentially the greatest
impact,” says Ready.Read more > | Written Plans for Retirement Are Better Motivators | The top financial concern among Americans
remains having enough money for a comfortable retirement, according to a new
analysis from the LIMRA Secure Retirement Institute. Nine out of 10 savers say
a written plan helps them to better understand their goals, while three out of
four feel they are more likely to follow a written plan for retirement.Read more > | Getting Auto-Enrollment Implementation Right | “When a retirement plan sponsor tells me they
want to implement automatic enrollment, I always ask them why,” says Scott M.
Dufek, a partner with Dufek & Co. Certified Public Accountants in Chicago,
which provides auditing services for retirement plans. Dufek notes that he
often gets blank looks when he asks that question, or the plan sponsor attended
an event and heard that it was a good thing to do. “Some plan sponsors jump
into it without thinking it through, and they often do not meet their goals or create
administrative headaches,” he says.Read more > | | Economic Events | In the week ending February 14, the
advance figure for seasonally adjusted initial claims for unemployment
insurance was 283,000, a decrease of 21,000 from the previous week’s unrevised
level of 304,000, the Labor Department reported. The four-week moving average
was 283,250, a decrease of 6,500 from the previous week’s unrevised average of
289,750.
The average interest rate for a 30-year fixed-rate
mortgage is 3.76%, up from 3.69% one week ago, according to Freddie Mac. The
average interest rate for a 15-year fixed-rate mortgage is 3.05%, up from
2.99%.
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| Market Mirror | Yesterday,
the Dow closed 44.08 points (0.24%) lower at 17,985.77, the NASDAQ climbed
18.34 points (0.37%) to 4,924.70, and the S&P 500 was down 2.23 points
(0.11%) at 2,097.45. The Russell 2000 was virtually unchanged at 1,227.91, and the
Wilshire 5000 decreased 19.85 points (0.09%) to 22,141.18.
On the NYSE,
3.2 billion shares traded, with a slight lead for decliners. On the NASDAQ, 2.8
billion shares changed hands, with a slight lead for advancing issues.
The price of the 10-year Treasury note was down 10/32,
increasing its yield to 2.114%. The price of the 30-year Treasury bond
decreased 19/32, bringing its yield up to 2.741%.
| | Compliance | PBGC Issues FAQs About Multiemployer Pension Reform | The Pension Benefit Guaranty Corporation (PBGC)
has issued frequently asked questions (FAQs) about the Multiemployer Pension
Reform Act of 2014 (MPRA). The FAQs are addressed to multiemployer plan
participants, and provide a summary of certain reform provisions.Read more > | | Investing | Northern Trust Agrees to Settle Securities Lending Suit | Northern Trust Investments has agreed to pay $36
million to settle a lawsuit claiming it violated the Employee Retirement Income
Security Act (ERISA) in handling retirement plan assets invested in its
securities lending program. The lawsuit alleges that Northern Trust breached
its duties to retirement plans and their participants and beneficiaries by
imprudently investing collateral received from securities lending activities
and by charging impermissibly high fees. Plaintiffs Joseph Diebold,
representing the ExxonMobil Savings Plan, and Paul Hundt, representing the
Texas Instruments 401(k) Savings Plan, filed the lawsuit in 2009, alleging
Northern Trust Investments and Northern Trust Co. had ignored warning signs
indicating a different investment strategy was in order.Read more > | | Small Talk | ON
THIS DATE: In 1792,
President George Washington signed legislation renewing the United States Post
Office as a cabinet department led by the postmaster general, guaranteeing
inexpensive delivery of all newspapers, stipulating the right to privacy and
granting Congress the ability to expand postal service to new areas of the
nation. In 1872, Silas Noble and
J.P. Cooley patented the toothpick manufacturing machine. In 1962, from Cape Canaveral, Florida,
John Hershel Glenn Jr. was successfully launched into space aboard the Friendship 7 spacecraft on the first
orbital flight by an American astronaut. In 1998, American Tara Lipinski, at age 15, became the youngest gold
medalist in winter Olympics history when she won the ladies’ figure skating
title at Nagano, Japan.
And now it’s time for FRIDAY FILES!
| Some facts about time that will make you think.Read more > | In Port Wilunga, Australia,
a man sustained a gaping wound to his hand while using a chainsaw at his
residence. He phoned two emergency departments, but was told that they were
very busy and would not be able to treat him for more than 10 hours. According
to the BBC, the man then used a large sewing needle and some fishing line to
sew up the wound and washed it with gin to prevent infection. He also drank gin
to help with the pain. The man later decided to drive to the hospital for
treatment after not being able to contact his wife. He was pulled over by
police after failing to stop at a sign, and charged with several driving offenses
as well as being issued an immediate license disqualification. He recently lost
an appeal to his dru.nk driving charge.
In Irving, Texas, a
passerby reported what was believed to be a half-na.ked woman’s body in a box
near the entrance to the landfill. Police found the woman alive, but very
dru.nk. According to the local CBS news station, a friend had reported her
missing after he left her at the curb of a nightclub to get his car and came
back and she was gone. Initial exams showed no signs of as.sault, and the woman
says she doesn’t remember how she got to the landfill. Lesson learned?
In Deerfield Beach, Florida,
a woman went with her friend and three-year-old daughter to a liq.uor store. The
friend got into an argument with another customer, pulled out a gun and chased
the other customer outside. When he came back in, he fumbled with the gun and
shot himself in the leg. He then handed the gun to the woman, and the two ran
out of the store to hide the gun. However, they left the three-year-old there. The
woman has been charged with child neglect and tampering with evidence.
| In Boston,
Massachusetts, a man spent a significant amount of time shoveling snow out
of a parking space, and placed an old bookshelf in it when he left February 8
to work an evening shift. When he came home around midnight, he found a car
parked in the spot. So, the man decided to “put the snow back.”Read more > | In Hull, England, a man and
woman went to the city council office to get married. During a pre-wedding
meeting with a registrar, the man excused himself to make a phone call—to find
out what his intended-bride’s name was. According to Sky News, the registrar
notified authorizes and the couple was arrested for conspiracy to facilitate a
breach of immigration law.
In Iiyama, Japan, the Iiyama
Snow Festival Planning Committee held a “1,500 Snowmen Challenge,” designed
to commemorate the planned opening of a train station. More than 500 people
constructed 1,585 snowmen within an hour, breaking a Guinness World Record. The
previous record of 1,279 snowmen was set in Utah in 2011. According to UPI, officials
said each snowman had to be at least 36 inches tall and be composed of three
snowballs with eyes, a nose and arms.
In Boston,
Massachusetts, commuters experienced a traffic jam… caused by a boat. The
boat was being transported early to the convention center for a boat show, ironically,
to avoid weather-related complications as Boston is due another snowstorm, when
it got stuck in a snowbank. UPI says downtown Boston Business Improvement
District ambassadors grabbed shovels and cleared the snow from around the boat
with help from a construction crew.
Have a great weekend! | Share the good news with a friend! Pass the Dash along – and tell your
friends/associates they can sign up for their own copy.Read more > | News from PLANSPONSOR.com
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