Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
January 9th, 2019
Benefits & Administration
403(b) Plans Improving Governance Practices
Responses to the PLANSPONSOR Defined Contribution (DC) Survey over the past three years indicate that 403(b) plan sponsors are improving certain plan governance practices. For Employee Retirement Income Security Act (ERISA)-governed 403(b) plans, the percentage using the services of a plan adviser or institutional investment consultant jumped from 59.2% in 2016 to 71.8% in 2017 and 73.3% in 2018. ERISA 403(b) plan sponsors reporting they have an investment committee and investment policy statement also grew. Even among 403(b) plans not governed by ERISA, PLANSPONSOR DC Survey results show improvement in certain governance practices. Read more >
Webcast Event
On January 31, join Morningstar experts as they discuss research about the impact that managed accounts may have on employee savings and investing habits; how employees use a plan’s default investment and how various default decisions can lead to different retirement outcomes; and plan design features that can be used to further improve employee savings and overall retirement readiness. Read more >
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2019 PLANSPONSOR National Conference
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What are the best pension strategies for managing risk?  Read more >
Products, Deals and People
Risk International Offers to Share Fiduciary Responsibility for Health and Welfare Benefits
“Our services have always met a fiduciary standard in principle and have enabled us to drive significant year-over-year savings for our clients, with an average savings of $1,650 per employee in 2018,” says Eric Krieg, president of Risk International’s Employee Benefits Advisory division. Read more >
Market Mirror

Tuesday, the Dow gained 256.10 points (1.09%) to finish at 23,787.45, the NASDAQ closed 73.53 points (1.08%) higher at 6,897.00, and the S&P 500 increased 24.72 points (0.97%) to 2,574.41. The Russell 2000 was up 21.19 points (1.51%) at 1,426.55, and the Wilshire 5000 climbed 282.45 points (1.07%) to 26,613.83.

The price of the 10-year Treasury note was down 9/32, increasing its yield to 2.729%. The price of the 30-year Treasury bond decreased 13/32, bringing its yield up to 3.009%.

Industry Voices
Winning by Default
George White, from Custodia Financial, discusses how the IRS’ new distribution code for retirement plan loan defaults could help inform the retirement industry. Read more >
Ask the Experts
Relief for Excluding Employees From 403(b) Plans
“I read that the IRS provided some relief to plan sponsors who erroneously excluded part-timers from the right to make elective deferrals to their 403(b) plans. Was there other relief offered for plan sponsors who may have excluded employees other than part-timers from the right to make elective deferrals?” Read more >
Investing
Many Foundations and Endowments Underestimate Investment Risk
Despite investing towards return goals in the 5% to 8% range, many endowments and foundations surveyed by CAPTRUST say they are unwilling or unable to withstand significant volatility. Read more >
401(k) Participants Made Opposing Trades in 2018
High trading activity days were concentrated around the beginning and end of the year—with trades moving in similar volumes in opposite directions. Read more >
Small Talk

ON THIS DATE: In 1793, Jean-Pierre Blanchard made the first successful balloon flight in the U.S. In 1788, Connecticut became the 5th state to join the United States. In 1861, the state of Mississippi seceded from the United States. In 1951, the United Nations headquarters officially opened in New York City. In 1995, Russian cosmonaut Valeri Poliakov, 51, completed his 366th day in outer space aboard the Mir space station, breaking the record for the longest continuous time spent in outer space. In 2002, the U.S. Justice Department announced that it was pursuing a criminal investigation of Enron Corp. The company had filed for bankruptcy on December 2, 2001. In 2006, Matthew Broderick and Nathan Lane received stars on the Hollywood Walk of Fame. In 2007, Steve Jobs, Apple Inc.’s CEO, announced the first generation iPhone.

 

WEDNESDAY WISDOM: “The opportunity is often lost by deliberating.”—Publilius Syrus, Latin writer

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

Advertising: Paul Zampitella paul.zampitella@strategic-i.com

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