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Creating an Effective LDI Strategy for 2021
Creating an Effective LDI Strategy for 2021
Defined benefit plan sponsors need to look at different tools for making their liability-driven investing strategies more efficient, and they should re-evaluate their glide path triggers.
Ask the Experts
Self Employed Ministers’ 403(b) Contributions’ Effect on Compensation
“We are a church denominational 403(b)(9) plan which has not elected to be covered by the Employee Retirement Income Security Act (ERISA). Our participants include self-employed ministers. In Publication 571, Tax-Sheltered Annuity Plans (403(b) Plans), the IRS instructs self-employed ministers that their includible compensation is net earnings from ministry minus contributions made to the retirement plan and the deductible portion of their self-employment tax. If the minister makes designated Roth or after-tax contributions to their 403(b) account do those contributions reduce includible compensation since these contributions do not reduce taxable income?”
Most Read
House Committee Approves Bill Aimed at Increasing Retirement Plan Coverage
Employees Don’t Want ‘All or Nothing’ When It Comes to Guaranteed Lifetime Income
2021 Recordkeeping Survey
Economic Events
The Conference Board Consumer Confidence Index improved moderately in January, after decreasing in December. The Index now stands at 89.3 (1985=100), up from 87.1 in December. However, the Present Situation Index—based on consumers’ assessment of current business and labor market conditions—decreased from 87.2 to 84.4. The Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions—increased from 87.0 in December to 92.5 this month.
Market Mirror
Tuesday, the Dow decreased 22.96 points (0.07%) to 30,937.04, the NASDAQ was down 9.93 points (0.07%) at 13,626.07, and the S&P 500 closed 5.74 points (0.15%) lower at 3,849.62. The Russell 2000 decreased 18.90 points (0.87%) to 2,149.86, and the Wilshire 5000 lost 111.02 points (0.27%) to finish at 40,802.02.

The price of the 10-year Treasury note was down 1/32, increasing its yield to 1.040%. The price of the 30-year Treasury bond was unchanged, with its yield down to 1.796%.
Avoiding Retirement Plan Operational Errors
Understanding the plan document, establishing a plan administrative policy, having good service providers and doing regular checks can help plan sponsors avoid operational errors.
Intel Prevails Again in Case Over Alternative Investments in TDFs
A federal judge found the plaintiffs in most cases did not provide sufficient evidence that the hedge fund and private equity investments in Intel’s retirement plans were imprudent.
Rep. Neal Introduces DB Plan Relief Bill
The bill contains provisions designed to improve the financial situation of multiemployer plans, as well as provisions for funding relief for single-employer defined benefit plans.
Small Talk
ON THIS DATE: 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 1927, United Independent Broadcasters Inc. started a radio network with contracts with 16 stations. The company later became Columbia Broadcasting System (CBS). In 1945, Soviet troops entered Auschwitz, Poland, freeing the survivors of the network of concentration camps. In 1967, a launch pad fire during Apollo program tests at Cape Canaveral, Florida, killed astronauts Virgil “Gus” Grissom, Edward H. White II, and Roger B. Chaffee. In 1973, the Vietnam peace accords were signed in Paris. In 2010, Steve Jobs unveiled the Apple iPad.
WEDNESDAY WISDOM: “Grief is just love with no place to go.”—Jamie Anderson, author
Industry Intel Roundup—Featured Webcasts
PLANSPONSOR is pleased to present the next edition of our Industry Intelligence roundup. This week, we are featuring webcasts sponsored by experienced providers in the industry. The content was created to educate, inform and offer ideas for plan sponsors regarding plan design, investing, administration and compliance.
PLANSPONSOR 2021 Plan Progress Series: Measuring the Success of Your DC Plan
Sponsored by American Century Investments For years, defined contribution (DC) plan success was measured by participation rates. Then savings rates were introduced as a metric. Most recently, measuring plan participant outcomes, or retirement readiness, has been stressed as an important success metric. All these things and other factors contribute to the success of a DC plan. Join PLANSPONSOR, industry sources and a plan sponsor for a webinar in which they will discuss: Metrics plan sponsors should use to gauge the success of their DC plans; Ways to measure participant outcomes, or retirement readiness; and Information available to help plan sponsors measure DC plan success.
Retirement Reimagined: How Employers Can Help Their Workforce Amid Shifting Priorities
Millions of Americans are leaving the traditional workforce due to the “Great Resignation.” When coupled with the fact that many baby boomers (the youngest of whom will reach age 65 in 2030)1 are working longer – one thing has become clear: the notion of a “normal retirement” no longer exists. But the retirement readiness gap remains. Recently, Edelman Financial Engines conducted research to examine the state of retirement planning. According to the findings, more than half of employees age 55+ without a financial plan aren’t sure if they can ever afford to stop working.2 With some employees planning to work until they’re unable while others might be leaving their employer sooner than expected, it becomes obvious that employees need help. The good news – there are actions employers can take to address these varied situations and ensure employees retire with confidence. Join us for a webinar to learn more about the research and how employers can solve the distinct and complex challenges of employees nearing retirement. Analyze research on the current state of retirement planning needs for American workers during a time of pivotal change. Discover how to help your near-retiree population based on these findings. Learn how providing employees with access to trusted advisors can instill confidence. Preview Edelman Financial Engines' retirement income innovations launching in early 2022.
PLANSPONSOR 2021 Plan Progress Series: Retirement Plan Cybersecurity
As we live life online, cybersecurity is a growing risk. As headlines and lawsuits have shown, retirement plan accounts and providers are not immune to cyber theft and fraud. Strong defenses must be in place for the best interest of the plan and its participants. Join PLANSPONSOR and a panel of experts for a discussion about: Plan sponsor fiduciary responsibilities related to retirement plan cybersecurity; The most up-to-date actions plan sponsors and participants can take to keep plan accounts and information secure; and How plan sponsors should be prepared in case cyber theft or fraud happens in their plans.
SPONSORED BY: Fidelity Information Services
New Paths to Retirement Growth and Strategies for Success
Under pressure from all sides – from clients to competitors to regulatory bodies and global events – the retirement industry is undergoing significant disruption that will define this decade. Join a panel of industry experts as they provide their perspective on these disruptions and the strategies they have in place to address them, including driving participant engagement, increasing cybersecurity, and leveraging advanced technology to drive efficiency and innovation.
PLANSPONSOR 2021 Plan Progress Series: Communicating to Boost Participant Engagement
Employees’ savings may have gotten off course due to financial impacts of the pandemic and legislation allowing for special retirement plan distributions and higher loan limits. With so many issues affecting health and finances over the past year, perhaps it’s time for a retirement savings reset.
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