Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
January 27th, 2015
Plan Sponsor of the Year Finalists
Plan Sponsor of the Year Finalists: 401(k) $50M to $250M
Each year, the editors of PLANSPONSOR recognize a number of plan sponsors that demonstrate leadership in providing a more secure retirement for workers. Today, PLANSPONSOR is pleased to announce the finalists for the 2015 PLANSPONSOR Plan Sponsor of the Year award in the Corporate 401(k) $50 Million to $250 Million category.Read more >
Market Mirror
Yesterday, the Dow ticked up 6.10 points (0.03%) to 17,678.70, the NASDAQ increased 13.88 points (0.29%) to 4,771.76, and the S&P 500 was up 5.27 points (0.26%) at 2,057.09. The Russell 2000 climbed 9.90 points (0.83%) to 1,198.83, and the Wilshire 5000 closed 97.82 points (0.45%) higher at 21, 685.83. On the NYSE, 3.2 billion shares traded, with a more than 2 to 1 lead for advancers. On the NASDAQ, 1.8 billion shares changed hands, with 1.8 advancing issues for every declining issue. The price of the 10-year Treasury note was down 9/32, increasing its yield to 1.825%. The price of the 30-year Treasury bond decreased 20/32, bringing its yield up to 2.402%.
Compliance
Council Asks DOL to Reconsider Open MEPs
In its examination of the outsourcing of employee benefit plan services with a particular focus on functions that historically have been handled by employers, such as “named fiduciary” responsibilities, the 2014 ERISA Advisory Council also looked at multiple employer plans (MEPs) and their potential role in outsourcing. The Council formulated several recommendations for the Department of Labor (DOL).Read more >
President Obama Proposes Retirement Tax Reform
President Obama’s retirement tax reform plan would give 30 million additional workers the opportunity to save for retirement through their employers, but would put a limit on lifetime savings. The president outlined four key aspects of the retirement tax reform plan.Read more >
MOST READ ARTICLES
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2021 Recordkeeping Survey
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2021 Plan Sponsor of the Year
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Most DB Plan Sponsors Seeking an Exit
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TRIVIAL PURSUITS: From where did the phrase ‘Beam me up, Scotty’ originate?
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Mismanagement of ERISA Accounts
Court Rejects Use of Post-Termination Plan Amendment
The 6th U.S. Circuit Court of Appeals agreed with a lower court that the Pension Benefit Guaranty Corporation (PBGC) did not err when it found that Kentucky Bancshares failed to pay all benefits due to employees under its pension plan when the plan was terminated. In 2008, as it was preparing to terminate its pension plan, Kentucky Bancshares also began implementing changes to meet the requirements of the Pension Protection Act of 2006 (PPA). The changes generally lowered the lump-sum benefits for participants. The court found that nothing in the PPA or the Internal Revenue Code made it necessary for Kentucky Bancshares to amend the plan in a way that caused a decrease in the value of benefits.Read more >
From the Magazine
Running the Fund: TDF Pandemonium
Most likely many of your participants use target-date funds (TDFs), but how many of these people are invested sub-optimally? Where target-date funds or target-risk funds are available in plans, 65.8% of participants have money in one of these options. Both types are meant to be all-in-one investments where participants put their account’s entire balance. But of that nearly 66%, only 51.5% are wholly invested in such a fund, according to Aon Hewitt’s “2014 Universe Benchmarks” study. The rest have invested only partially, and the resulting diversification issues may cause problems for them in the future. Sponsors who want to steer participants toward fully investing in a target-date fund face a choice.Read more >
Small Talk

ON THIS DATE: In 1785, the Georgia General Assembly incorporated the University of Georgia, the first state-funded institution of higher learning in the new republic. In 1870, Kappa Alpha Theta, the first women’s sorority, was founded at Indiana Asbury University (now DePauw University) in Greencastle, Indiana. In 1880, Thomas Edison patented the electric incandescent lamp. In 1888, the National Geographic Society was founded in Washington, D.C., for “the increase and diffusion of geographical knowledge.” In 1948, Wire Recording Corporation of America announced the first magnetic tape recorder. The ‘Wireway’ machine with a built-in oscillator sold for $149.50. In 1973, the United States, South Vietnam, Viet Cong, and North Vietnam formally signed “An Agreement Ending the War and Restoring Peace in Vietnam” in Paris. In 2010, J.D. Salinger, author of “The Catcher in the Rye,” the classic American novel about a disillusioned teenager, died of natural causes at age 91 at his home in Cornish, New Hampshire.

 

TUESDAY TRIVIA: A group of squirrels is called a dray or scurry.

TRIVIAL PURSUITS: What is the origin of the question mark?Read more >
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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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