Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
February 9th, 2017
Benefits & Administration
In the Age of HDHPs, Employees Need Education
Despite year-over-year increases between 2014 and 2016 in the number of U.S. workers enrolled in a high-deductible health plan (HDHP) with a savings component, 63% of employees don’t know the benefits of a health savings account (HSA), and nearly one in three feel no better today about managing their health care finances than when they first got health care on their own, a survey from consumer-directed health care solutions provider Alegeus finds. Read more >
Industry Voices
An Effective DC Plan for Uncovered Workers
Prof. Robert C. Merton and Dr. Arun S. Muralidhar propose a model for the design of state-run retirement plans. Read more >
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Market Mirror

Wednesday, the Dow closed 35.95 points (0.18%) lower at 20,054.34, the NASDAQ was up 8.24 points (0.15%) at 5,682.45, and the S&P 500 increased by 1.59 (0.07%) to 2,294.67. The Russell 2000 was down 2.33 points (0.17%) at 1,358.73, and the Wilshire 5000 increased 21.57 points (0.09%) to 23,994.04.

On the NYSE, 3.1 billion shares changed hands, with a slight lead for advancing issues. On the NASDAQ, 3.0 billion shares traded, with a slight lead for decliners.

The price of the 10-year Treasury note increased 15/32, bringing its yield down to 2.341%. The price of the 30-year Treasury bond climbed 1 13/32, decreasing its yield to 2.948%.

Compliance
IRS Updates Taxable Wage Base for Permitted Disparity
The Internal Revenue Service (IRS) has issued Revenue Ruling 2017-05, revealing the taxable wage base for permitted disparity formulas used in defined contribution (DC) plans. The ruling also provides tables of covered compensation for determining contributions to qualified pension, profit-sharing, and stock bonus plans. Read more >
IRS Updates Procedures for Determination Letter Requests
Procedures for requesting determination letters were modified to reflect the elimination of the five-year remedial amendment cycles for individually designed plans. Read more >
Investing
CITs’ Lower Fees Seen as an Advantage Over Mutual Funds
Collective investment trusts (CITs) are slowing making inroads into retirement plans, and most experts say lower fees, in addition to other advantages CITs offer, will spur more adoption. Read more >
Small Talk

ON THIS DATE: In 1825, the U.S. House of Representatives elected John Quincy Adams president. No candidate had received a majority of electoral votes. In 1861, the Provisional Congress of the Confederate States of America elected Jefferson Davis as its president. In 1870, the United States Weather Bureau was authorized by Congress. The bureau is officially known as the National Weather Service (NWS). In 1884, Thomas Edison and Patrick Kenny executed a patent application for a chemical recording stock quotation telegraph (U.S. Pat. 314,115). In 1895, volleyball was invented by W.G. Morgan. In 1942, the U.S. Joint Chiefs of Staff held its first formal meeting to coordinate military strategy during World War II. In 1942, daylight-saving “War Time” went into effect in the U.S. In 1960, the first star was placed on the Hollywood Walk of Fame. The star was for Joanne Woodward. In 1969, the Boeing 747 flew its inaugural flight. In 1997, “The Simpsons” became the longest-running prime-time animated series. “The Flintstones” held the record previously.

SURVEY SAYS: I consider myself an introvert. Yet somehow, I am able to stand in front of hundreds of people at our conferences, moderating panels, without feeling nervous. This week, I’d like to know, do you consider yourself an introvert or extrovert, and how comfortable would you feel delivering a 15-minute speech to an audience of 200? You may respond to this week’s survey today by 6 p.m. Pacific time. 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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