Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
January 11th, 2018
Benefits & Administration
Debt Management Should Be a Factor in Retirement Security Policy
Researchers suggest that analysts and policymakers should explore ways to enhance debt management practices as they examine factors driving retirement security. According to a National Bureau of Economic Research (NBER) working paper, older persons today appear more likely to enter retirement in debt than in past decades, and it is not just the value of debt for people on the verge of retirement that has increased over time, but the proportion of debt to assets as well. Debt, along with conservative asset allocations and rising interest rates, could affect decumulation strategies in retirement. Read more >
Markets Push Pension Funded Status Higher in 2017
Although defined benefit (DB) plans had mild to flat funded status improvements near the end of 2017, overall it was a good year. Most firms that track DB plan funded status estimated between 1% to 3% improvement for the year. Read more >
Compliance
Court Puts Pressure on EEOC to Revise Wellness Program Rules
The U.S. District Court for the District of Columbia has vacated the incentive portions of the Equal Employment Opportunity Commission’s (EEOC) wellness program rules under the Americans with Disabilities Act (ADA) and the Genetic Information Nondiscrimination Act (GINA), but issued a stay on the decision until January 1, 2019. Read more >
MOST READ ARTICLES
1
Financial Wellness Programs Boost Engagement and Loyalty
2
Brief in University of Pennsylvania 403(b) Lawsuit Points Out Differences From 401(k)s
3
Slower Spending in Retirement Has Implications for Retirement Products, Education
4
$280K Is What a Couple Retiring This Year Will Need to Cover Health Care
5
Hearing Witnesses Lay Out How Multiemployer Pensions Got Where They Are
Economic Events

November 2017 sales of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations and trading-day differences but not for price changes, were $492.4 billion, up 1.5% from the revised October level and up 9.8% from the November 2016 level, the Census Bureau reported. The September 2017 to October 2017 percent change was revised from the preliminary estimate of up 0.7% to up 0.8%.

Market Mirror

Wednesday, the Dow was down 16.67 points (0.07%) at 25,369.13, the NASDAQ lost 10.01 points (0.14%) to finish at 7,153.57, and the S&P 500 decreased 3.06 points (0.11%) to 2,748.23. The Russell 2000 was virtually unchanged at 1,559.80, and the Wilshire 5000 closed 36.87 points (0.13%) lower at 28,507.08.

 

The price of the 10-year Treasury note was up 1/32, decreasing its yield to 2.554%. The price of the 30-year Treasury bond was unchanged, with its yield at 2.900%.

Investing
Economies of Scale Strongly Benefit the Largest Plans
Callan 2017 Investment Management Fee Survey finds a 15% decrease in use of performance-based fees among investment managers since 2014. The median fee charged for investment management, according to Callan researchers, is 38 basis points. However, fees vary by investor type, asset class and investor size. Read more >
Incorporation of ESG Factors Into Institutional Investor Decisions Leveled Off
Adoption rates of environmental, social, and governance (ESG) factors into the investment decision-making process among institutional investors has leveled off, according to the Callan 2017 ESG survey. Overall incorporation of ESG factors into investment decision-making plateaued at 37% of respondents in 2017, on par with 2016. Callan says this is partly due to multiple years of investor education around ESG coming to fruition. Read more >
Small Talk

ON THIS DATE: In 1805, the Michigan Territory was created. In 1861, Alabama seceded from the United States. In 1902, “Popular Mechanics” magazine was published for the first time. In 1913, the first sedan-type car was unveiled at the National Automobile Show in New York City. The car was manufactured by the Hudson Motor Company. In 1922, at Toronto General Hospital, Leonard Thompson became the first person to be successfully treated with insulin. In 1935, Amelia Earhart Putnam became the first woman to fly solo from Hawaii to California. In 1938, in Limerick, Maine, Frances Moulton assumed her duties as the first woman bank president. In 1943, the United States and Britain signed treaties relinquishing extraterritorial rights in China. In 1973, owners of American League baseball teams voted to adopt the designated-hitter rule on a trial basis. In 1980, Nigel Short, age 14, from Bolton in Britain, became the youngest International Master in the history of chess. In 2000, the U.S. Postal Service unveiled the second Vietnam Veterans Memorial commemorative stamp in a ceremony at The Wall. In 2001, the U.S. Federal Trade Commission approved the merger of America Online and Time Warner to form AOL Time Warner.

SURVEY SAYS: We covered a survey which found if an emergency pet expense were to present itself, more than one-third (37%) of respondents said they would sacrifice contributions to their retirement account to pay for it. This week, I’d like to know, do you own a pet, and what would you sacrifice to pay for an emergency pet expense? You may respond to this week’s survey by 6 p.m. Pacific time today. Read more >
Share the news with a friend! Pass the NewsDash along and tell your friends/associates they can sign up for their own copy. Read more >

Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

Advertising: Paul Zampitella paul.zampitella@strategic-i.com

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