Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
February 7th, 2018
Webcast Event
In a very special forum—free and exclusively for plan sponsors—the editors of PLANSPONSOR and PLANADVISER magazines invite you to join industry sources on February 27 for the webcast “2018 Retirement Plan Trends and Retirement Security – An Inflection Point.” Read more >
Benefits & Administration
Workers Favor Employer-Provided Health Benefits Coverage
An America’s Health Insurance Plans (AHIP) survey reveals the significance participants place on employer-provided health benefits coverage. The 2018 study, which surveyed 1,000 American workers with employer-provided coverage, found 56% of employees consider their coverage a key factor in sticking with their current job. Respondents also indicated their employers and insurance providers working together to improve health and lower costs improves their favorability of both, and they cited what particular benefits they like. Read more >
How to Help Different Generations With Retirement Savings Challenges
At various stages of one’s life, priorities and challenges change. Retirement plan sponsors and advisers need to be aware of these challenges to help Baby Boomers, Millennials and Generation X overcome them so that they can save adequately for retirement. “Ultimately, the bottom line is when you look at each one of these generations, they all have the same needs and goals,” says William Rose, senior vice president, wealth management, at UBS in New York. “They are just weighting them differently at different stages” of their lives. Read more >
MOST READ ARTICLES
1
The Senate Math That Could Block SECURE Act
2
House Committee Advances Bill to Establish Union Pension Lifeline Program
3
Open MEPs Not for Every Plan Sponsor
4
Driving Financial Wellness at Work
5
Pension Participants Claim ERISA Breaches in Dow DuPont Pension Transfer
Millennials Doing a Good Job of Saving for Retirement
Nearly half (48%) of Millennials with a 401(k) contribute 10% or more on a monthly basis—which is the highest percentage of any other generation (only 36% of Gen Xers and 44% of boomers reported the same), according to the Generations Ahead Study from Allianz Life Insurance Company of North America. Nearly six in ten believe saving for retirement is a basic necessity, like food or housing. However, financial traumas witnessed by Millennials could have a negative effect on their financial wellness and willingness to take risk. Read more >
Products, Deals and People
Lucas Takes the Helm at EBRI
The Employee Benefit Research Institute (EBRI), a source of data and research on retirement, savings and health programs for workers, announced the appointment of Lori Lucas as president and CEO, effective immediately. Lucas tells PLANSPONSOR there is a new vision for EBRI’s future as it marks its 40th anniversary in 2018. The new vision includes making research more relatable, expanding the notion of what employee benefits are and strengthening EBRI’s voice and presence. Read more >
Market Mirror

Tuesday, the Dow made a slight rebound from the past two days, rising 567.02 points (2.33%) to 24,912.77. The Dow gained 148.36 points (2.13%) to finish at 7,115.88, and the S&P 500 closed 46.20 points (1.74%) higher at 2,695.14. The Russell 2000 again suffered a loss, down 40.10 points (2.59%) at 1,507.17. The Wilshire 5000 climbed 440.03 points (1.60%) to 27,930.84.

 

The price of the 10-year Treasury note decreased 25/32, bringing its yield up to 2.799%. The price of the 30-year Treasury bond fell 1 3/32, increasing its yield to 3.066%.

Ask the Experts
Tax Reform Effect on 457(f) Plans
“I work at a private tax-exempt hospital that sponsors a 403(b) plan, a 457(b) plan, and a 457(f) plan. I understand that the recently passed tax reform legislation did not contain many retirement plan provisions that would affect us, but heard that our 457(f) plan could be indirectly affected by the new law, Is this true?” Read more >
Investing
Managed Accounts and the Shifting Fiduciary Landscape
The latest research from Cerulli Associates suggests defined contribution (DC) plan managed account assets have exhibited strong year-over-year growth against the backdrop of an evolving fiduciary landscape. Jessica Sclafani, a director at Cerulli, explains the most common reason for which 401(k) plan sponsors offer participants a managed account service is that “it can be positioned as a retirement income solution.” Read more >
Institutional Investors See Best One-Year Return Since 2014
The Wilshire Trust Universe Comparison Service (Wilshire TUCS) saw a median one-year gain for all plan types of 14.72%. Read more >
Small Talk

ON THIS DATE: In 1795, the 11th Amendment to the U.S. Constitution was ratified. The amendment’s text prohibits the federal courts from hearing certain lawsuits against states. In 1936, the U.S. Vice President’s flag was established by executive order. In 1940, “Pinocchio” world premiered at the Center Theatre in Manhattan. In 1962, the U.S. government banned all Cuban imports and re-export of U.S. products to Cuba from other countries. In 1984, space shuttle astronauts Bruce McCandless II and Robert L. Stewart made the first untethered spacewalk. In 1985, “Sports Illustrated” released its annual swimsuit edition. It was the largest regular edition in the magazine’s history at 218 pages. In 1985, “New York, New York” became the official anthem of New York City. In 2000, California’s legislature declared that February 13 would be “Charles M. Schulz Day.”

 

 

WEDNESDAY WISDOM: “The best measure of a man’s honesty isn’t his income tax return. It’s the zero adjust on his bathroom scale.”—Arthur C. Clarke, British science fiction writer

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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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