| Editor’s Note | Happy New Year! Today, we bring you a special
edition of NewsDash, highlighting the top news stories on PLANSPONSOR.com in
2014. | | Benefits & Administration | At Distribution Time, What Do Participants Do? | Examining how participants decide to leave an
employer’s plan after separating and when they begin taking distributions can
help plan sponsors decide whether to use “to” or “through” target-date funds
(TDFs).Read more > | A Retirement Plan Sponsor Uses the Power of Inertia | Retirement plan participant inertia has
previously been viewed as a bad thing, but one plan sponsor sees it in a
different way. “For years, employee engagement was a primary goal of our
retirement plan strategy, but we realized it was hard to engage younger
workers. Then a light bulb went on, and we decided to use inertia as an asset
[for our strategy],” Joseph Huber, managing director and chairman of Credit Suisse’s
pension investment committee, tells PLANSPONSOR.Read more > | | Sponsored message from SunGard | Becoming the Provider of Choice – The Evolution of Service Models in Technology Improving outcomes for American Workers is a key focus for advisers, sponsors and participants. SunGard’s deep domain expertise helps recordkeepers provide smarter operations at reduced costs, while supporting agile growth. Learn more about SunGard’s managed services and solutions.Read more > | | Products, Deals & People | Great-West reached an agreement to acquire the
J.P. Morgan Retirement Plan Services large-market recordkeeping business. The
acquisition was of interest to Great-West because over the years, J.P. Morgan
has built a great business in the large-plan market, Robert L. Reynolds,
president and chief executive officer of Great-West Lifeco U.S., tells
PLANSPONSOR.Read more > |
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Great-West Financial has introduced Empower, a
new retirement services company. The retirement plan services businesses of
Great-West Financial take the name “Empower,” effective immediately. Empower is
now the second largest retirement services provider in the U.S. market, with
nearly 7 million defined contribution participants and more than $400 billion
in plan assets, according to Great-West.Read more > | | From the Magazine | Saxon Angle: De-Risking DB Pensions | These are interesting times for sponsors of
defined benefit (DB) pension plans subject to the Employee Retirement Income
Security Act (ERISA). We are witnessing a significant shift of plan assets from
the defined benefit retirement system to tax-qualified and other defined
contribution (DC) and individual retirement accounts (IRAs). We should expect
this trend to persist as the cost of maintaining DB plans continues to rise and
their funding status continues to wreak havoc on plan sponsor balance sheets.
Meanwhile, numerous sponsors still operate defined benefit plans, and many are
looking to “de-risk” them.Read more > | Now in its 16th year, PLANSPONSOR’s annual
Recordkeeping Survey is, as always, an exercise in ascertaining broad views of
trends as well as detailed insight into specific providers in the U.S. defined
contribution (DC) market. From the broad perspective, the “forest” continues to
expand at a fast clip: The 75 recordkeeping providers in this year’s survey
represent a total of $5.59 trillion in defined contribution plan assets as of
December 31, 2013, a more than $1 trillion (22.5%) increase over the prior
year.Read more > | Just out of Reish: Plan Committee Agendas | To help committees put their focus where needed,
here is a proposed list of topics for participant-directed plans, such as
401(k)s and 403(b)s. The list of issues may be incomplete, and there is no
“magic” to the allocation, but this is a good starting point. This column
covers the first two quarterly meetings.Read more > | | Economic Events | In the week ending December 27, the
advance figure for seasonally adjusted initial claims for unemployment
insurance was 298,000, an increase of 17,000 from the previous week’s revised
level, the Labor Department reported. The four-week moving average was 290,750,
an increase of 250 from the previous week’s revised average.
The average interest rate for a 30-year fixed-rate
mortgage is 3.87%, up from 3.83% one week ago, according to Freddie Mac. The
average interest rate for a 15-year fixed-rate mortgage is 3.15%, up from
3.10%.
| | Market Mirror | The Dow
closed 160.00 points (0.89%) lower at 17,823.07, the NASDAQ decreased 41.39
points (0.87%) to 4,736.05, and the S&P 500 fell 21.45 points (1.03%) to
2,058.90. The Russell 2000 was down 8.36 points (0.69%) at 1,204.70, and the
Wilshire 5000 lost 206.31 points (0.94%) to finish at 21,669.86.
On the NYSE,
3.2 billion shares traded, with 1.8 declining issues for every advancing issue.
On the NASDAQ, 2.7 billion shares changed hands, with a 1.3 to 1 ratio of
decliners to advancers.
The price of the 10-year Treasury note increased 6/32,
bringing its yield down to 2.171%. The price of the 30-year Treasury bond was
up 5/32, decreasing its yield to 2.750%.
| | PLANSPONSOR Research | For nearly two decades, PLANSPONSOR’s annual
Defined Contribution Survey has been the most important industry benchmark,
measuring and evaluating 401(k) and other DC providers according to feedback
from their own clients.Read more > | PLANSPONSOR’s annual Recordkeeping Survey gives
employers the chance to see exactly which products and services each provider
offers, and lists information about total assets and overall client
demographics.Read more > | | Compliance | Retirement Plan Deferral Limit Increases in 2015 | The Internal Revenue Service (IRS) announced
cost of living adjustments affecting dollar limitations for retirement plans,
as well as other retirement-related items for tax year 2015. The elective
deferral contribution limit for employees who participate in 401(k), 403(b),
most 457 plans, and the federal government’s Thrift Savings Plan is increased
from $17,500 to $18,000. The catch-up contribution limit for employees aged 50
and over who participate in 401(k), 403(b), most 457 plans, and the federal government’s
Thrift Savings Plan is increased from $5,500 to $6,000.Read more > | | Small Talk | ON
THIS DATE: In 1788,
Georgia voted to ratify the U.S. Constitution, becoming the fourth state in the
union. In 1892, Ellis Island opened
as America’s first federal immigration center. Annie Moore, then age 15, became
the first person to pass through. In 1965,
“Broadway” Joe Namath signed the richest rookie contract, for $400,000,
in the history of pro football. In 1971,
in the U.S., a federally imposed ban on television cigarette advertisements
went into effect. In 1974, U.S.
President Richard M. Nixon signed a bill requiring all states to lower the
maximum speed limit to 55 MPH. The law was intended to conserve gasoline
supplies during an embargo imposed by Arab oil-producing countries.
Sorry, no FRIDAY FILES this week.
Have a great weekend, everyone! | 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 PLANSPONSOR.com
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2014.
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