Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
January 26th, 2016
PLANSPONSOR Plan Sponsor of the Year Finalists
PSOY Finalists: Corporate 401(k) $25MM to $50MM
Congratulations to our Plan Sponsor of the Year finalists in the Corporate 401(k) $25mm to $50MM category.Read more >
PSOY Finalists: Corporate 401(k) $50MM to $200MM
Congratulations to our Plan Sponsor of the Year finalists in the Corporate 401(k) $50MM to $200MM category.Read more >
Benefits & Administration
ACA Deadline Extensions Prompt Regrouping
How should health plan sponsors adjust their strategies with new ACA reporting and Cadillac tax deadline extensions?Read more >
Is the UAW’s Demand for Return of Pensions a Realistic Ask?
Deals and People
Voya Keeps Building Government Markets Team With Rehire
Data and Research
Unplanned Financial Challenges Continue to Plague US Workers’ Retirement Savings
Researchers Revisit Income Replacement Rate Calculation
The income replacement rate (IRR)—income immediately following retirement divided by income immediately preceding retirement—is commonly used as a measure of economic preparation for retirement. In “Measuring Economic Preparation for Retirement: Income Versus Consumption,” a paper by Michael D. Hurd and Susann Rohwedder, two senior economists at RAND Corporation, the researchers contend that the widely accepted concept omits a number of relevant issues. They consider two variations of IRRs to address some of the complexities of contemporary labor and investment markets to workers nearing retirement.Read more >
Market Mirror

U.S. stocks fell Monday as the price of oil slumped again, the Associated Press reported. The Dow plunged 208.29 points (1.29%) to 15,885.22, the NASDAQ fell 72.69 points (1.58%) to 4,518.49, and the S&P 500 closed 29.82 points (1.56%) lower at 1,877.08. The Russell 2000 lost 23.29 points (2.28%) to finish at 997.37, and the Wilshire 5000 plummeted 322.20 points (1.65%) to 19,151.57.

On the NYSE, 3.1 billion shares traded, with declining issues outnumbering advancing issues more than 5 to 1. On the NASDAQ, 2.7 billion shares changed hands, with a 3 to 1 lead for decliners.

The price of the 10-year Treasury note was up 1/32, decreasing its yield to 2.000%. The price of the 30-year Treasury bond was down 1/32, increasing its yield to 2.787%.
Sponsored message from BlackRock
How Index and Active Can Work Together in DC Plans
Explore the trend toward indexing in DC and develop a framework for going index or active.Read more >
SCOTUS Again Remands Amgen Stock Drop Case
The U.S. Supreme Court in a per curiam decision on Monday sent back, for the second time, the 9th U.S. Circuit Court of Appeals’ decision reviving a proposed Employee Retirement Income Security Act (ERISA) class action against Amgen Inc. The high court says in its decision that the appellate court failed to properly evaluate the complaint, given a new precedent.Read more >
The DOL is asking a Florida district court to take action against an employer accused of inflating its fair market value during an employee stock ownership plan transaction.Read more >
DOL Plans to Extend Opportunities for MEPs
Calling retirement a “pillar of the middle class,” Labor Secretary Tom Perez introduced a number of retirement proposals that are going to be included in President Obama’s 2017 budget. One of the primary initiatives is that the administration will be looking to work with Congress on broadening multiple employer plans (MEPs). Perez said that current law and guidance doesn’t allow current plans or employers to take full advantage of the benefits of open MEPs, which he calls an exciting and useful tool for employees. The administration’s initiative is to reduce some of the plans’ compliance burdens so employers face fewer obstacles in their adoption.Read more >
Institutional investors and more affluent individuals aren’t pulling out of markets amid increased volatility—opting instead to reassess risk and seek out more strategic approaches.Read more >
Small Talk
ON THIS DATE: In 1802, the U.S. Congress passed an act calling for a library to be established within the U.S. Capitol. In 1837, Michigan became the 26th state to join the United States. In 1861, in the U.S., Louisiana seceded from the Union. In 1870, the state of Virginia rejoined the Union. In 1875, George F. Green patented the electric dental drill for sawing, filing, dressing and polishing teeth. In 1934, the Apollo Theatre opened in New York City. In 1961, U.S. President John F. Kennedy appointed Dr. Janet G. Travell as the first woman to be the “personal physician to the President.” In 1992, Russian president Boris Yeltsin announced that his country would stop targeting U.S. cities with nuclear weapons.
TRIVIAL PURSUITS: While typing is not exactly exercise, it does burn calories. Since many of us spend a portion of our days sitting and typing on a computer, wouldn’t you like to know how many calories that burns?Read more >
Share the good 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


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