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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
2021 Target-Date Fund Survey
The DOL Has Begun Retirement Plan Cybersecurity Audits

2020 Recordkeeping Survey
SPONSORED BY: Capital Group
Q&A: An Analyst’s Eye View of the Risks Ahead for Plan Sponsors
Dane Mott, an accounting analyst at Capital Group, recently sat down with Gary Veerman, head of LDI Solutions at Capital Group.
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.
SPONSORED BY: Fidelity Investments
PODCAST: The Power Of
Join Fidelity and our guests as we explore the ideas and actions that give us the power to make better decisions about our work, finances, health care, and lives.
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.
Redefining Participant Success: Getting More From Long Term Incentives and ESPPs
When it comes to your participants, how do you drive and measure success of your benefits offering? Where does equity fit into the equation? And, how do company stock plans impact other benefit programs? If these questions have been on your mind, join Fidelity on June 10th to hear Yosef Siegal unveil new findings about participant behavior, metrics that can help redefine potential success, and opportunities to help you and your participants get the most of their stock plans. Plus, hear firsthand from Emily Cervino on groundbreaking research that exposes surprising connections between LTI programs and ESPPs have on 401(k).
Recent Trends in Financial Wellness, Retirement Readiness and Guaranteed Lifetime Income
PLANSPONSOR 2021 Plan Progress Series: Lessons From Litigation
There is no shortage of litigation filed against retirement plan sponsors. It seems that most lawsuits focus on plan administration and investment fees, but a variety of other charges have been filed. While plan sponsors’ first priority is the best interest of participants and not how to avoid legislation, no one wants to be sued. With a large number of cases resulting in settlements, the courts haven’t offered much input on the issues, but there are still lessons to be learned.
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