Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
February 28th, 2018
Editor’s Note
We know regular readers of NewsDash and PLANSPONSOR are aware of their fiduciary responsibilities and are dedicated to crafting plans that meet the needs of their unique work force. Wouldn’t you like to meet with like-minded peers to find out what others in the industry are doing and get ideas to improve your plan? The PLANSPONSOR National Conference, held in June in Washington D.C., has an agenda that covers current trends and best practices, as well as legislative and regulatory updates, while also addressing what lies ahead in retirement plan design, participant engagement and education, and investment options and solutions. By bringing together plan sponsors, retirement plan advisers and providers to meet and engage in dialog with legislative, legal and policy thought leaders, you will walk away with thoughtful ideas and new contacts that can be used to realize your plan’s true potential. Register today.Read more >
Benefits & Administration
Enhanced Wellness Plans Yield Top Results
“A Closer Look: 2018 Workplace Wellness Trends,” from the International Foundation of Employee Benefit Plans, shows 45% of organizations that provide stress management programs found positive impacts on health care costs, while 43% experienced better employee health screening data and 53% produced improved results with employee engagement and satisfaction. Support from senior leadership also plays a key role in the success of wellness programs.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?
Millennials Need Help to Save Adequately for Retirement
The retirement outlook for many Millennials is dismal, according to a new report from the National Institute on Retirement Security, “Millennials and Retirement: Already Falling Short.” The report finds that 66.2% of working Millennials have nothing saved for retirement. While 66% of Millennials work for an employer that offers a retirement plan, only 34.3% are participating in the plan. The Institute also found that only 5% of Millennials are saving adequately for retirement.Read more >
Transamerica Requires TPAs for Small Plans, Reflecting Competitive Landscape
Transamerica announced recently that the services of a third-party administrator (TPA) “specializing in retirement” will be required for all new retirement plans coming onto the recordkeeping platform with less than $3 million in assets. According to an interview with Joe Boan, senior vice president and executive director, individual and workplace distribution for Transamerica, the move is meant to be a clear signal to the defined contribution (DC) plan marketplace, underscoring what the firm sees as the clear value delivered by TPAs to small retirement plans.Read more >
Americans Underutilizing Retirement Savings Accounts
Americans are underutilizing retirement savings options, Edward Jones found in a survey. Fifty-one percent are not actively contributing to a 401(k) plan, and only 37% are contributing to an individual retirement account (IRA) and 18% to a health savings account (HSA).Read more >
More Than Half of Employees Contributing to Both HSA and 401(k)
While some studies show that debt and unforeseen bills are derailing some employees’ efforts to save for retirement, an Alight Solutions study finds an encouraging element—most employees are not foregoing 401(k) contributions to contribute to health savings accounts (HSAs).Read more >
Economic Events

Wholesale inventories for January, adjusted for seasonal variations but not for price changes, were estimated at an end-of-month level of $617.7 billion, up 0.7% from December 2017, and up 4.5% from January 2017, the Census Bureau announced. The November 2017 to December 2017 percentage change was revised from up 0.4% to up 0.6%.

Retail inventories for January, adjusted for seasonal variations but not for price changes, were estimated at an end-of-month level of $626.2 billion, up 0.8% from December 2017, and up 2.4% from January 2017. The November 2017 to December 2017 percentage change was revised from up 0.2% to up 0.3%.

Market Mirror

Tuesday, the Dow was down 299.24 points (1.16%) at 25,410.03, the NASDAQ decreased 91.11 points (1.23%) to 7,330.35, and the S&P 500 closed 35.32 points (1.27%) lower at 2,744.28. The Russell 2000 fell 22.86 points (1.47%) to 1,536.47, and the Wilshire 5000 lost 369.59 points (1.29%) to finish at 28,339.84.

The price of the 10-year Treasury note decreased 11/32, bringing its yield up to 2.903%. The price of the 30-year Treasury bond was down 7/32, increasing its yield to 3.167%.

Original Case Against NYU 403(b) Plans Going to Trial
In addition, a federal judge dismissed a third complaint against NYU—naming its adviser as a defendant—as a duplicative action.Read more >
Ask the Experts
Distributions When Switching Jobs Within Same Denomination
“I work as an administrator in my local church—recently hired in this position after working in the same position for another church of the same denomination. I thought I could withdraw my retirement plan assets from the plan at my prior church, but the person in charge of that plan said I could not, since I still work for the denomination. Is this true?”Read more >
Small Talk
From an all-time high of an average $4.66 in 2016, the Tooth Fairy’s cash gifts dropped to an average of $4.13 in 2017, according to the Original Tooth Fairy Poll sponsored by Delta Dental. The Original Tooth Fairy Poll has typically served as a good indicator of the economy’s overall direction, tracking with the movement of Standard & Poor’s 500 index for 12 of the past 14 years. The December 2017 poll shows the Tooth Fairy hasn’t quite been able to keep up with the market’s hot pace. Those looking under their pillow for their first lost-tooth payout took far less of a hit. Tooth Fairy payouts are highest in the West.Read more >

ON THIS DATE: In 1827, the Baltimore & Ohio Railroad became the first railroad incorporated for commercial transportation of people and freight. In 1849, regular steamboat service to California via Cape Horn arrived in San Francisco for the first time. The SS California had left New York Harbor on October 6, 1848. The trip took 4 months and 21 days. In 1861, the U.S. territory of Colorado was organized. In 1883, the first vaudeville theater opened. In 1885, AT&T (American Telephone and Telegraph) was incorporated. In 1948, Bud Gartiser set a world record when he cleared the 50-yard low hurdles in 6.8 seconds. In 1951, a Senate committee issued a report that stated that there were at least two major crime syndicates in the U.S. In 1953, in a Cambridge University laboratory, scientists James D. Watson and Francis H.C. Crick discovered the double-helix structure of DNA. In 1974, the U.S. and Egypt re-established diplomatic relations after a break of seven years. In 1979, Mr. Ed, the talking horse from the TV show “Mr. Ed”, died. In 1983, “M*A*S*H” became the most watched television program in history when the final episode aired. In 1993, U.S. Federal agents raided the compound of an armed religious cult in Waco, Texas. The Division of Alcohol, Tobacco and Firearms (ATF) had planned to arrest the leader of the Branch Davidians, David Koresh, on federal firearms charges. Four agents and six Davidians were killed and a 51-day standoff followed.

“God gives the nuts, but he does not crack them.”—Franz Kafka, novelist and short story writer

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Editorial: Alison Cooke Mintzer


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