Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
January 10th, 2018
Benefits & Administration
CRR Finds Those at Risk for Having Inadequate Retirement Income Dropped
Between 2013 and 2016, the National Retirement Risk Index (NRRI) improved modestly, dropping from 52% to 50% of working-age households, according to the Center for Retirement Research (CRR) at Boston College. The NRRI measures the percentage of households at risk of having insufficient income to maintain their pre-retirement standard of living. The CRR says between 2013 and 2016, both equity and house prices increased sharply, serving to reduce the NRRI. According to the CRR, there were three main factors increasing the share of households at risk for inadequate income in retirement—the rise in Social Security’s Full Retirement Age (FRA), the decline in interest rates, and new reverse mortgage rules. All groups of households experienced an improvement in risk, except middle-age and middle-income households, due in part to more non-mortgage borrowing.Read more >
Employees Want More Than Education on Retirement Savings
The 2017 Financial Mindset Study and the 2018 Hot Topics in Retirement & Financial Wellbeing reports from Alight Solutions find distinctions with what workers and employers believe are integral in financial education, and what both groups consider vital past the spectrum of retirement savings and insurance services.Read more >
Ask the Experts
Does Erroneously Filing Form 5500 Void Non-ERISA Status?
“A 403(b) plan sponsor intending the plan to be a non-ERISA [Employee Retirement Income Security Act] plan hired our TPA firm last year. However, before they hired us, they erroneously filed a Form 5500. Is the mistaken filing enough to void the non-ERISA status?”Read more >
2021 DC Plan Benchmarking Survey
Working Past Age 65 May Seem Like a Great Idea …
2022 Retirement Industry Trends to Follow
TRIVIAL PURSUITS: Residents of the Island of Misfit Toys
2021 Recordkeeping Survey
Market Mirror

Tuesday, the Dow gained 102.80 points (0.41%) to finish at 25,385.80, the NASDAQ was up 6.19 points (0.09%) at 7,163.58, and the S&P 500 increased 3.58 points (0.13%) to 2,751.29. The Russell 2000 decreased by 1.71 points (0.11%) to 1,560.10, and the Wilshire 5000 closed 40.43 points (0.14%) higher at 28,543.95.

The price of the 10-year Treasury note decreased 18/32, bringing its yield up to 2.546%. The price of the 30-year Treasury bond fell 1 13/32, increasing its yield to 2.882%.

6th Circuit Rules for Eaton Corp. in ESOP Suit
The 6th U.S. Circuit Court of Appeals has upheld a district court decision to dismiss a class-action suit against Eaton Corporation fiduciaries of its employee stock ownership plan (ESOP), alleging they had made statements that artificially inflated the company stock. The appellate court agreed that plaintiffs did not meet pleading standards set forth in the Supreme Court ruling in Fifth Third v. Dudenhoeffer.Read more >
SEC Fixed Income Liquidity Committee Sets First Meeting
The U.S. Securities and Exchange Commission (SEC) released its agenda for the inaugural meeting of the Fixed Income Market Structure Advisory Committee. SEC officials established the advisory committee in late 2017 to provide a formal mechanism through which the commission can receive advice and recommendations on fixed income market structure issues. Its stated initial focus will be on the studying and promoting the liquidity and stability of the corporate bond and municipal securities markets. These subjects make up the bulk of the agenda set for the January 11 meeting. Members of the public who wish to provide their views on the matters to be considered by the Fixed Income Market Structure Advisory Committee may submit comments.Read more >
Small Talk
A new Harris Poll conducted by telephone for the American Institute of Certified Public Accountants (AICPA) found that more than half of Americans (54%) have a pet in their home and the cost of that companionship is impacting their finances. Nearly one-quarter of pet owners (23%) admitted the cost of pet ownership is more than they expected. If an emergency expense were to present itself, three-quarters of American pet owners (76%) said they would make financial sacrifices to pay for it. More than one-third (37%) said they would sacrifice contributions to their retirement account to pay for pet-related expenses.Read more >

ON THIS DATE: In 1861, Florida seceded from the United States. In 1870, John D. Rockefeller incorporated Standard Oil. In 1920, the League of Nations ratified the Treaty of Versailles, officially ending World War I with Germany. In 1946, the first meeting of the United Nations General Assembly took place with 51 nations represented. In 1951, Donald Howard Rogers piloted the first passenger jet on a trip from Chicago to New York City. In 1971, “Masterpiece Theatre” premiered on PBS with host Alistair Cooke. In 1984, the United States and the Vatican established full diplomatic relations for the first time in more than a century. In 1990, Time Inc. and Warner Communications Inc. completed a $14 billion merger. The new company, Time Warner, was the world’s largest entertainment company. In 2000, it was announced that Time-Warner had agreed to buy America On-line (AOL). It was the largest-ever corporate merger priced at $162 billion. In 2001, American Airlines agreed to acquire most of Trans World Airlines (TWA) assets for about $500 million. The deal brought an end to the financially troubled TWA.


WEDNESDAY WISDOM: “Kind words do not cost much. Yet they accomplish much.”—Blaise Pascal, French mathematician, physicist, inventor, writer and Catholic theologian

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Editorial: Alison Cooke Mintzer


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