Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
January 6th, 2016
Benefits & Administration
In-Plan Income Still Intimidates Plan Sponsors
A new survey suggests defined contribution (DC) plan sponsors are holding out for additional safe harbor regulations before offering more in-plan retirement income solutions. According to the “2015 Survey of DC Viewpoints,” DC plan sponsors believe a comprehensive safe harbor for in-plan retirement income solutions is still the “most needed” piece of regulation heading into 2016.Read more >
As longevity rises, many policy experts contend that people’s working lives will also lengthen. But this argument assumes all workers have experienced the same increase in life expectancy—without factoring in socioeconomic status. “Does a Uniform Retirement Age Make Sense?,” just released by the Center for Retirement Research at Boston College, examines data on mortality and income. The brief finds that life expectancies for low socioeconomic status individuals have been improving more slowly than for individuals in a higher socioeconomic bracket in recent decades, causing the life expectancy gap to grow.Read more >
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Is It Time to Increase the Retirement Age?
Joseph Chamie, an independent consulting demographer and a former director of the United Nations Population Division, says the Potential Support Ratio (PSR), or the ratio of the working-age population, ages 15 to 64, per one person 65 or older, “may signal economic stress with more elderly depending on fewer young workers to keep the economy humming.” His analysis suggests that to maintain the current PSR, the retirement age would need to be increased by 2050 to as high as 80 in some countries. A retirement age of 72 would be needed in the U.S.Read more >
The aggregate funded ratio for U.S. corporate pension plans increased by 0.2% in 2015 after seeing a decrease of 0.9%, to 82.7%, for the month of December, according to Wilshire Consulting.Read more >
Data from Mercer shows that despite volatile equity markets, interest rate rises helped fuel a 3% increase in the pension funded status of Standard & Poor’s (S&P) 1500 companies.Read more >
Sponsored message from MetLife
Looking for alternatives for your defined contribution retirement plan?
Visit the Stable Value Educational Hub.Read more >
Ask the Experts
Can SPDs Be Provided for Church Plans?
“I recently commenced employment at a church plan sponsor, and noticed that a Summary Plan Description (SPD) is not provided to participants in our 403(b) retirement plan. Is an SPD not required for church plans? Can an SPD be provided?”Read more >
Products, Deals and People
Alliance Benefit Group of Illinois (ABGI) is partnering with Retirement Clearinghouse to assist participants with consolidating their retirement savings in their current employers’ plans. Retirement Clearinghouse will help participants locate, transport and merge their accounts.Read more >
Market Mirror

The stock market mellowed Tuesday after a volatile Monday. The Dow was up 9.72 points (0.06%) at 17,158.66, the NASDAQ was down 11.66 points (0.24%) at 4,891.43, and the S&P 500 increased 4.55 points (0.23%) to 2,017.21. The Russell 2000 added 1.82 points (0.16%) to finish at 1,110.44, and the Wilshire 5000 closed 42.73 points (0.21%) higher at 20,697.27.

On the NYSE, 3.1 billion shares traded, with 1.4 advancing issues for every declining issue. On the NASDAQ, 2.7 billion shares changed hands, with a slight lead for advancers.

The price of the 10-year Treasury note was up 1/32, decreasing its yield to 2.243%. The price of the 30-year Treasury bond was down 10/32, increasing its yield to 3.003%.
Compliance
Guidance Issued About IRS Determination Letter Program
In anticipation of the elimination, effective January 1, 2017, of the five-year remedial amendment cycle system for individually designed plans under the Internal Revenue Service (IRS) Employee Plans determination letter program, the IRS issued a notice of changes. The changes described in Notice 2016-03 will be reflected in an update to Revenue Procedure 2007-44, but the agency said employers may rely on the notice until the update is issued.Read more >
From the Magazine
Legislation Takes Some Swipes at DB Plan Sponsors
Through their devoting of toil and treasure, sponsors of U.S. corporate defined benefit (DB) plans have worked hard to restore funding levels from the lows of the financial crisis, and they have largely succeeded. In spite of their achievements, or perhaps because of them, Congress took a great swipe at corporate DB plan sponsors with four sections in the Bipartisan Budget Act of 2015, signed into law in early November.Read more >
Small Talk
For the environmentally conscious, here are 10 ways to reuse your Christmas tree, from the Mother Nature Network.Read more >

ON THIS DATE: In 1838, Samuel Morse publicly demonstrated the telegraph for the first time. In 1912, New Mexico became the 47th U.S. state. In 1930, the first diesel-engine automobile trip was completed after a run of 792 miles from Indianapolis to New York City. In 1942, the first commercial around-the-world airline flight took place on a Pan American Airlines flight. In 1952, the “Peanuts” comic strip debuted in Sunday papers across the United States. In 1963, Mutual of Omaha’s “Wild Kingdom” TV show premiered on NBC. In 1987, after a 29-year lapse, the Ford Thunderbird was presented with the Motor Trend Car of the Year Award. It was the first occurrence of a repeat winner of the award. In 1994, figure skater Nancy Kerrigan was clubbed on the right leg by an assailant at Cobo Arena in Detroit. Among the four men later sentenced to prison for the attack, was her competitor Tonya Harding’s ex-husband. In 1999, Bob Newhart received a star on the Hollywood Walk of Fame.

 

WEDNESDAY WISDOM: “I think in terms of the day’s resolutions, not the years’.”—Henry Moore, English sculptor and artist
Share the good news with a friend! Pass the Dash along – and tell your friends/associates they can sign up for their own copy.Read more >

Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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