Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
January 7th, 2016
Benefits & Administration
How Much Income Will Social Security Replace?
The Social Security Administration calculates pre-retirement income replacement rates using career-average earnings, but indexed for the growth of wages economy-wide, and it says replacement rates average only around 40%. However, the Congressional Budget Office (CBO) has performed a new analysis of pre-retirement income replacement rates limited to workers’ last five years of substantial earnings, adjusted for growth in prices. Its data shows Social Security will actually replace more pre-retirement income than the average the Social Security Administration reports.Read more >
The average funding ratio for a typical U.S. corporate defined benefit plan rose, from 81.2% to 83.1%, over the last quarter of 2015, according to the Pension Fiscal Fitness Monitor of Legal & General Investment Management America Inc. (LGIMA).Read more >
Morgan Stanley Expands Robo-Advising Tech with Blooom Purchase
Republicans Move to Prevent SEC Climate Disclosure Requirements
Ask the Experts
Are There Annual or Lifetime Limitations on Roth Conversions?
Products, Deals and People
CUNA Mutual Group has upgraded its retirement planning website, offering additional guidance and tools for plan participants and sponsors to successfully manage their retirement plans. A new section for those older than 55 helps them shift into planning mode.Read more >
Economic Events
New orders for manufactured durable goods in November, down three of the last four months, decreased less than $0.1 billion or virtually unchanged to $238.6 billion, down from the previously published virtually unchanged increase, according to the Census Bureau. This followed a 2.8%October increase. Primary metals, down five of the last six months, drove the decrease, $0.6 billion or 2.9% to $19.5 billion. New orders for manufactured nondurable goods decreased $1.0 billion or 0.4% to $233.6 billion.
Sponsored message from SEI
How are your peers responding to the evolving landscape for DC plans?
SEI recently conducted a survey of 230 plan sponsors gauging current perspectives around plan design, target date investing, and governance. Request your advanced copy of the results today.Read more >
Market Mirror

U.S. stocks closed sharply lower Wednesday, led by a decline in energy stocks as the price of oil plunged to its lowest level since 2008, according to the Associated Press. The Dow fell 252.15 points (1.47%) to 16,906.51, the NASDAQ shed 55.67 points (1.14%) to finish at 4,835.76, and the S&P 500 closed 26.45 points (1.31%) lower at 1,990.26. The Russell 2000 decreased 16.08 points (1.45%) to 1,094.36, and the Wilshire 5000 lost 274.99 points (1.33%) to finish at 20,422.28.

On the NYSE, 3.1 billion shares changed hands, with a nearly 3 to 1 lead for decliners. On the NASDAQ, 2.7 billion shares traded, with declining issues outnumbering advancing issues more than 2 to 1.

The price of the 10-year Treasury note increased 19/32, bringing its yield down to 2.174%. The price of the 30-year Treasury bond climbed 1 6/32, decreasing its yield to 2.940%.
DC Plans Still Widely Targeted by Litigators
Following a busy month of December, new retirement plan litigation is already grabbing industry trade media headlines this year—alleging by-now familiar varieties of malpractice on the part of some very large plan sponsors and their service providers. What’s a concerned plan official to do?Read more >
IRS Issues New User Fee Schedule for Employee Plans
The Internal Revenue Service (IRS) has issued Revenue Procedure 2016-8, providing guidance for complying with the user fee program. References to 403(b) pre-approved plans were added, among other changes.Read more >
From the Magazine
Barry’s Pickings: The DOL’s Agenda
As the Obama administration heads for the finish line, the Department of Labor (DOL) is, in the face of widespread opposition, driving an agenda aimed at reducing private-sector involvement in the U.S. retirement system.Read more >
Small Talk
ON THIS DATE: In 1610, Galileo Galilei sighted four of Jupiter’s moons. He named them Io, Europa, Ganymede, and Callisto. In 1782, the Bank of North America opened in Philadelphia. It was the first commercial bank in the United States. In 1894, W.K. Dickson received a patent for motion picture film. In 1927, transatlantic telephone service began between New York and London. In 1927, in Hinckley, Illinois, the Harlem Globetrotters played their first game. In 1953, U.S. President Harry Truman announced the development of the hydrogen bomb. In 1975, OPEC agreed to raise crude oil prices by 10%, which began a time of world economic inflation. In 1980, U.S. President Jimmy Carter signed legislation that authorized $1.5 billion in loans for the bail-out of Chrysler Corp. In 1996, one of the biggest blizzards in U.S. history hit the eastern states. More than 100 deaths were later blamed on the severe weather.
SURVEY SAYS: Retirement plan providers are continuing to expand access to plan data on mobile devices, and some are allowing participants to complete transactions through a mobile device. We would like to know whether your participants have access to plan data or transaction capabilities on mobile devices and what kind of usage are you seeing? You may respond to this week’s survey by 6 p.m. Pacific time today.Read more >
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


Subscribe to NEWSDash, click here .

To unsubscribe, click here.

BrightScope / CIO / FWW / Investor Economics / LiquidMetrix / Market Metrics / Matrix Solutions / PLANADVISER / Plan For Life / PLANSPONSOR / Simfund