Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
February 5th, 2015
Benefits & Administration
DC Health Plan Adoption Set to Grow
A new study shows an increased interest by employers in defined contribution (DC) health plans. The Healthcare Trends Institute polled more than 250 human resource executives, benefits managers and benefits decision makers from companies of various sizes and industries in September through November 2014 and found 77.5% have some familiarity with DC health plans, compared to 59.4% last year. More than 61% of employers indicated they are looking into offering a DC health plan for 2016.Read more >
Corporate pension plans, public pension plans, foundations and endowments all missed their return targets for January 2015, according to the BNY Mellon Investment Strategy and Solutions Group (ISSG). The funded status of the typical U.S. corporate pension plan declined 4.9% to reach 82.4% by the end of January, propelled downward as the interest rate that determines future liabilities fell to an all-time low, BNY Mellon ISSG says.Read more >
The aggregate funded ratio for U.S. corporate pension plans declined to 74.3% for the month of January, according to Wilshire Consulting. The decrease in funding was the result of a greater increase in liability value versus a smaller increase in asset value.Read more >
Products, Deals & People
ERISApedia Provides ERISA Answers
With a platform that combines search tools and a user-friendly interface, the website provides answers to common questions asked by retirement plan sponsors and service providers. Included on the website is “The Qualified Plan eSource,” a discourse designed for Employee Retirement Income Security Act (ERISA) professionals working with defined contribution plans. Written by industry expert Timothy McCutcheon, the document contributes answers in an easy-access format with direct links to government source materials.Read more >
2022 Recordkeeping Survey
TRIVIAL PURSUITS: How Many States Are in More Than One Time Zone?
Defined Benefit Plans May Have New Life
TRIVIAL PURSUITS: Which are the most northern, southern, eastern and western U.S. States?
TRIVIAL PURSUITS: Meaning and Origin of the Idiom “Watershed Moment?”
Market Mirror

Oil prices plunged on Wednesday, after the U.S. government reported that crude inventories surged last week, which renewed investors’ worries that supplies of oil are still outstripping demand, according to the Associated Press. The Dow ticked up 6.62 points (0.04%) to 17,673.02, while the NASDAQ was down 11.03 points (0.23%) at 4,716.70, and the S&P 500 closed 8.59 points (0.42%) lower at 2,041.44. The Russell 2000 increased by 0.27 (0.02%) to 1,197.26, and the Wilshire 5000 shed 88.34 points (0.41%) to finish at 21,536.44.

On the NYSE, 3.2 billion shares traded, with a near 2 to 1 lead for decliners. On the NASDAQ, 2.8 billion shares changed hands, with 1.5 declining issues for every advancing issue.

The price of the U.S. Treasury note was up 11/32, bringing its yield down to 1.757%. The price of the 30-year Treasury bond increased 23/32, decreasing its yield to 2.353%.

IRS Shares Tips for Avoiding Form 5500 Scrutiny
The Internal Revenue Service (IRS) says in many of its Employee Plans Compliance Unit (EPCU) projects, it finds plan sponsors enter incorrect information on their Form 5500 series returns or information reports. The agency says it uses information on Form 5500 returns and reports to select cases for compliance checks, and entering incorrect information on the return or report, or leaving a field blank field when there should be an entry, increases the likelihood that a plan will be selected for an EPCU compliance check.Read more >
Nonqualified Plan Sponsor Loses FICA Taxes Lawsuit
A federal appellate court found that, rather than properly withholding nonqualified retirement plan participants’ Federal Income Contributions Act (FICA) taxes as required by the plan, Henkel Corp. caused participants to pay these taxes at the time of each benefit payment, effectively reducing their anticipated retirement benefits. The U.S. District Court for the Eastern District of Michigan noted that Henkel admitted in a letter to participants that it had not properly withheld taxes. This resulted in the participants owing more in FICA taxes than they would have owed had Henkel properly and timely paid taxes when they were due. The court granted summary judgment to the participants because Henkel failed to adhere to the purpose and terms of the plan, resulting in a reduced benefit to the participants.Read more >
From the Magazine
Just out of Reish: Expense Recapture
There are two types of expense recapture accounts: one where the “recaptured” money is put in the plan and another where it is held by the provider. The Department of Labor (DOL) approves of the latter, while the former is well-accepted.Read more >
Small Talk
ON THIS DATE: In 1883, the Southern Pacific Railroad completed its transcontinental “Sunset Route” from New Orleans to California, In 1919, Charlie Chaplin, Mary Pickford, Douglas Fairbanks and D.W. Griffith joined forces to create their own film studio, which they called the United Artists Corporation. In 1972, Bob Douglas became the first black man elected to the Basketball Hall of Fame in Springfield, Massachusetts. In 1988, two federal grand juries in Florida announced indictments of Panama military strongman General Manuel Antonio Noriega and 16 associates on drug smuggling and money laundering charges. In 1994, white supremacist Byron De La Beckwith was convicted in the murder of African-American civil rights leader Medgar Evers, more than 30 years after the crime occurred. Evers was gunned down in the driveway of his Jackson, Mississippi, home on June 12, 1963.
SURVEY SAYS: “This week I’d like to know, “If you could have one super power, what would you choose?” You may respond to this week’s survey by 6 p.m. Pacific time today.Read more >
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


Copyright © Asset International, Inc., 2015.

All rights reserved.  No reproduction without prior authorization.

Editorial: Alison Cooke Mintzer


Subscribe to NEWSDash, click here .

To unsubscribe, click here.

BrightScope / CIO / FWW / Investor Economics / LiquidMetrix / Market Metrics / Matrix Solutions / PLANADVISER / Plan For Life / PLANSPONSOR / Simfund