January 6th, 2021 Insight on Plan Design & Investment Strategy Every Weekday Investing Rethinking the 60/40 Portfolio Defined benefit and defined contribution plan sponsors need to adjust the composition of the traditional 60/40 portfolio to meet plan and participant goals, experts say. Plan Sponsor of the Year Awards Only One Week Left!! Nominations for the 2021 Plan Sponsor of the Year awards have been open for a month, and the deadline for entries in January 13. Most Read Participants What Participants Want From Employers’ Retirement Plan Websites Research 2021 Recordkeeping Survey Inside Angle DOL’s Next Moves SPONSORED BY: AYCO Benefit considerations in uncertain times Employers are shifting their benefits to help employees navigate the financial impact of COVID-19. Market Mirror Tuesday, the Dow was up 167.71 points (0.55%) at 30,391.60, the NASDAQ gained 120.51 points (0.95%) to finish at 12,818.96, and the S&P 500 increased 26.21 points (0.71%) to 3,726.86. The Russell 2000 climbed 33.19 points (1.71%) to 1,979.11, and the Wilshire 5000 closed 326.04 points (0.84%) higher at 39,218.13. The price of the 10-year Treasury note was down 3/32, increasing its yield to 0.951%. The price of the 30-year Treasury bond decreased 32/32, bringing its yield up to 1.700%. Ask the Experts QNEC for a Prior Year and the 415 Limit “We made a qualified nonelective contribution (QNEC) in 2020 to correct a missed 403(b) deferral opportunity for one of our employees in 2019. Is the QNEC considered to be a 2019 or a 2020 contribution for 415 limit purposes? Also, since we are making up for a missed elective deferral opportunity, does the QNEC count toward the 402(g) elective deferral limit?” Data and Research ‘Social Security Bridge’ Said to Be the Best Approach to Annuities The Center for Retirement Research says this approach remains competitive for those at the 75th percentile of the wealth distribution. UpFront Retirees in Name Only The factors that are redefining ‘retirement’—what these mean for workers near the end of their full-time-employment years. Small Talk ON THIS DATE: In 1838, Samuel Morse’s telegraph system was demonstrated for the first time at the Speedwell Iron Works in Morristown, New Jersey. In 1912, New Mexico was admitted into the United States as the 47th state. In 1919, Theodore Roosevelt, the 26th president of the United States, died at Sagamore Hill, his estate overlooking New York’s Long Island Sound. In 1945, the Battle of the Bulge ended with 130,000 German and 77,000 Allied casualties. In 1952, the “Peanuts” comic strip debuted in Sunday papers across the United States. In 1963, “Wild Kingdom” premiered on NBC. In 1999, Bob Newhart received a star on the Hollywood Walk of Fame. WEDNESDAY WISDOM: “To begin, begin.”—William Wordsworth, poet 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: Considerations for Pension Risk Transfer Sponsored by Securian Financial Pension risk transfer (PRT) activity has been increasing year over year, although it slowed somewhat during the COVID-19 pandemic. PRT can be an effective tool for plan sponsors to reduce risk and eliminate some liabilities, but it should be done in a cost-effective way. SPONSORED BY: Charles Schwab Post-COVID Insights From 401(K) Participants In the wake of the pandemic, what are 401(k) participants’ specific wants and needs? How are they changing their approach to spending and saving? What are their top five must-have benefits? Tune in to a webinar hosted by Schwab Retirement Plan Services, Inc. for firsthand knowledge gleaned from an exclusive 401(k) Participant Survey. Register now – it’s an insightful 45 minutes you don’t want to miss SPONSORED BY: Morningstar Designing the Modern Retirement Plan During the COVID-19 Pandemic The past 18 months have altered the workplace in ways we could never have anticipated. With the ongoing effects of the COVID-19 pandemic, increasingly tight labor market, and remote working environment, plan sponsors have been posed with the challenge of closely evaluating their retirement plan in order to help attract and retain talent. As we continue to navigate the pandemic and adapt to the long-term impacts of remote work, employees who no longer work from the office are seeking greater holistic, personalized financial advice from their employers.1 In this webinar, we’re going to discuss how the needs of employees are evolving and the implications this may have on the way you design and structure your retirement plan. Key discussion points include: Challenges plan sponsors have faced with engaging a remote workforce The growing trend of offering holistic financial solutions and personalized advice Designing retirement plans to be more effective decumulation vehicles PLANSPONSOR 2021 Plan Progress Series: Benchmarking Your Recordkeeper Selecting the best recordkeeper for retirement plan participants and monitoring that recordkeeper are part of a plan sponsor’s fiduciary duties. Consolidation in the industry has continued at a steady pace and recordkeepers compete with technology and other services, so it is getting more difficult for plan sponsors to discern the best choice for their plan from others. Did someone forward you this newsletter? Sign up here to get NEWSDash directly in your mailbox! Unsubscribe | Manage Subscriptions | Contact Us | Privacy Policy | Advertise ©2021 Asset International Inc. All rights reserved. 702 King Farm Boulevard, Suite 400, Rockville, MD 20850