Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
January 28th, 2016
PLANSPONSOR Plan Sponsor of the Year Finalists
PSOY Finalists: Public DC Category
Congratulations to our finalists in the Public DC category.Read more >
Benefits & Administration
Consider the Unique Needs of ‘Generation DC’
The personality and preferences of, say, Millennials or Generation X or Baby Boomers do not translate into real differences in how these groups think about retirement savings, a survey by State Street Global Advisors (SSGA) suggests. Instead, defined contribution (DC) plan sponsors should consider Generation DC, which comprises members of Gen X and Millennials: the first two populations using DC plans as their predominant workplace retirement savings plan. Where retirement plan participants are in the retirement savings line is more important than generational descriptions: “What are the key inflection points, what is their life stage?” Fredrik Axsater, senior managing director and head of Global Defined Contribution at SSGA, tells PLANSPONSOR.Read more >
MOST READ ARTICLES
1
2021 Target-Date Fund Survey
2
Rush of Litigation Against Retirement Plans Expected to Continue
3
The DOL Has Begun Retirement Plan Cybersecurity Audits
4
2020 Recordkeeping Survey
5
TRIVIAL PURSUITS: What do the M’s stand for in M&Ms?
Participants Show Troubling QDIA Behavior Trends
Target-date funds and other QDIAs are often thought of as ‘set-it and forget-it’ investments, but new data from J.P. Morgan Asset Management highlights some troubling behaviors among participants invested in their plan’s default.Read more >
Entries for HSA Buyer’s Guide

How does your HSA administrator stack up?

The March issue of PLANSPONSOR magazine will include our first HSA Buyer’s Guide and will profile the experience and capabilities of employer-affiliated HSA account administrators. Many providers are currently working to complete the questionnaire, but we have also had trouble connecting with several organizations. If you would like to ensure your HSA administrator is included among those responding, please send the provider’s name and/or contact information to brian.okeefe@assetinternational.com.
Products, Deals and People
Securian Financial Group is collaborating with payroll providers to offer plan sponsors an automated 401(k) contribution rate and loan payment change service. The company will generate a change file and send it to payroll providers without the plan sponsor having to get involved.Read more >
Betterment announced the “official launch of Betterment for Business,” a new 401(k) platform which “uses smarter technology and includes personalized investment advice for all plan participants.”Read more >
Economic Events
Sales of new single-family houses in December 2015 were at a seasonally adjusted annual rate of 544,000, according to estimates released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 10.8% above the revised November rate of 491,000 and is 9.9% above the December 2014 estimate of 495,000.
Market Mirror

The stock market gave up a modest gain Wednesday and turned lower after the Federal Reserve issued a cautious assessment of how the U.S. economy is doing, according to the Associated Press. The Dow lost 222.77 points (1.38%) to finish at 15,944.46, the NASDAQ fell 99.51 points (2.18%) to 4,468.17, and the S&P was down 20.68 points (1.09%) at 1,882.95. The Russell 2000 decreased 15.23 points (1.50%) to 1,002.74, and the Wilshire 5000 closed 218.08 points (1.12%) lower at 19,228.29.

On the NYSE, 3.1 billion shares traded, with 1.6 declining issues for every advancing issue. On the NASDAQ, 2.6 billion shares changed hands, with a more than 2 to 1 lead for decliners.

The price of the 10-year Treasury note was down 1/32, increasing its yield to 1.999%. The price of the 30-year Treasury bond decreased 9/32, bringing its yield up to 2.800%.
Compliance
Portability Key in President’s Retirement Initiatives
This week, Department of Labor (DOL) Secretary Tom Perez introduced a number of retirement proposals that are going to be included in President Obama’s 2017 budget. Among them is a $100 million grant proposal to encourage the development of portability ideas for benefits that will allow workers to take their retirement benefits and other employment-based benefits from job to job. Spencer Williams, president and CEO of Retirement Clearinghouse (RCH), whose firm tries to easily facilitate this for participants, says, “Sixty percent of people with $5,000 or less in their DC plans are cashing out; some may need money, but for the biggest part, it’s because too much work is involved to move it. If we remove the friction, more plan participants will stay in the system.”Read more >
Investing
PIMCO Suggests Six Investment Themes for DC Plans
As U.S. interest rates begin to normalize and inflation picks up, defined contribution (DC) plan sponsors have an opportunity to refine their plan investment menus to improve retirement outcomes, according to PIMCO. In a Viewpoint article, Richard Fulford, executive vice president and head of U.S. Retirement at PIMCO, suggests plan sponsors evaluate active approaches, including custom target-date strategies, core strategies augmented by income, real assets, hedged international equities and alternative capital preservation options.Read more >
Small Talk
ON THIS DATE: In 1547, England’s King Henry VIII died and was succeeded by his 9-year-old son, Edward VI. In 1878, the first telephone switchboard was installed in New Haven, Connecticut. In 1902, The Carnegie Institution was established in Washington, D.C. with a gift of $10 million from Andrew Carnegie. In 1909, the United States ended direct control over Cuba. In 1915, the Coast Guard was created by an act of the U.S. Congress to fight contraband trade and aid distressed vessels at sea. In 1916, Louis D. Brandeis was appointed by President Wilson to the U.S. Supreme Court, becoming its first Jewish member. In 1922, the National Football League (NFL) franchise in Decatur, Illinois, transferred to Chicago and took the name Chicago Bears. In 1986, the U.S. space shuttle Challenger exploded just after takeoff. All seven of its crewmembers were killed. In 1997, Clive Davis received a star on the Hollywood Walk of Fame. In 1999, Ford Motor Company announced the purchase of Sweden’s Volvo AB for $6.45 billion.
SURVEY SAYS: The Carolina Panthers and the Denver Broncos will compete in Super Bowl 50 on February 7. This week, I’d like to know, will you be watching and who do you want to win—or do you even care? You may respond to this week’s survey by 6 p.m. Pacific time today.Read more >
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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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