Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
July 11th, 2018
Benefits & Administration
Many Millennials, Gen Xers Don’t Expect to Receive Social Security
Social Security will be the most critical source of income for 61% of pre-retirees. However, only 70% of Gen Xers and 51% of Millennials expect Social Security benefits when they retire, PGIM Investments, the investment business of Prudential Financial, found in a survey. While Millennials are the least likely to rely on Social Security for retirement income, nearly one in three are not saving anything for retirement. More than one-third say they do not see any point in saving for retirement because anything can happen between now and then. Additionally, nearly one in five Gen Xers are not saving anything for retirement. Read more >
Ask the Experts
Must Plans Adopt Budget Act New Hardship Withdrawal Rules?
“I am aware from a prior Ask the Experts column that the Bipartisan Budget Act of 2018 made some changes to the hardship distribution rules? But what if we want to keep the hardship distribution rules that we have in place currently? For example, we prefer that participants exhaust all in-plan loan availability prior to taking a hardship distribution, since it prevents plan leakage. Will we be forced to remove the requirement that all available loans be taken from our 403(b) plan before a hardship distribution may be issued?” Read more >
We’d Like to Profile a Plan Sponsor
In an article last November, we covered the idea of so-called “side-car” accounts—workers who do not yet have emergency savings will be directed to first fund a short-term savings account reserved for emergencies, before funding their retirement account. If you are a plan sponsor who offers such an account to employees or if you know a plan sponsor that offers one, and would be willing to speak to us about it, please send an email to rebecca.moore@strategic-i.com. Read more >
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Products, Deals and People
Health Plan Provider Offers Cost Savings Investigators Team
A team of experts will review claim data and provide actionable insight into an employer’s health care spend, with the objective of helping employers identify and realize cost saving opportunities. Read more >
Market Mirror

Tuesday, the Dow gained 143.07 points (0.58%) to finish at 24,919.66, the NASDAQ was up 3.00 points (0.04%) at 7,759.20, and the S&P 500 closed 9.67 points (0.35%) higher at 2,793.84. The Russell 2000 closed 8.99 points (0.53%) lower at 1,695.62, and the Wilshire 5000 increased 48.01 points (0.16%) to 29,159.72.

The price of the 10-year Treasury note was down 1/32, increasing its yield to 2.865%. The price of the 30-year Treasury bond decreased 3/32, bringing its yield up to 2.968%.

Sponsored message from PIMCO
What Retirement Consultants Think Most 401(k) consultants support additional services in plans for retirees.  Read more >
Compliance
District Court Upholds Use of Segal Blend to Calculate Multiemployer Pension Liability
Commenting on the decision, Segal Consulting says it is “consistent with every other decision handed down in similar cases except for one,” the Southern District of New York Court’s decision in The New York Times Company v. Newspaper and Mail Deliverers’-Publishers’ Pension Fund, which is being appealed. Read more >
Investing
‘Hibernation’ the Next Step for DB Plan Investing
As more marketable obligations—such as those for in-pay retirees—are transferred to insurers, residual defined benefit (DB) plans will have unusual and idiosyncratic features that make them more difficult to manage, which will drive pension investing to a “hibernation” focus for many, Mercer says. Read more >
Small Talk
On an average day in 2017, nearly everyone age 15 and over (96%) engaged in some sort of leisure activity, such as watching TV, socializing, or exercising, according to the American Time Use Survey (ATUS), conducted by the Census Bureau for the Bureau of Labor Statistics (BLS). Watching TV was the leisure activity that occupied the most time, accounting for just over half of all leisure time, on average. Time spent reading for personal interest or playing games or using a computer for leisure varied greatly by age. Read more >

ON THIS DATE: In 1533, Henry VIII, who divorced his wife and became head of the Church of England, was excommunicated from the Catholic Church by Pope Clement VII. In 1798, the U.S. Marine Corps was formally re-established by “An Act for Establishing a Marine Corps” passed by Congress. The act also created the U.S. Marine Band. The Marines were first commissioned by the Continental Congress on November 10, 1775. In 1804, the United States’ first secretary of the treasury, Alexander Hamilton, was killed by Vice President Aaron Burr in a duel. In 1864, Confederate forces led by Gen. Jubal Early began an invasion of Washington, D.C. They turned back the next day. In 1914, Babe Ruth debuted in the major leagues with the Boston Red Sox. In 1934, the first appointments to the newly created Federal Communications Commission were made. In 1934, President Franklin Delano Roosevelt became the first American chief executive to travel through the Panama Canal while in office. In 1955, the U.S. Air Force Academy was dedicated in Colorado at Lowry Air Base. In 1962, the first transatlantic TV transmission was sent through the Telstar I satellite. In 1972, U.S. forces broke the 95-day siege at An Loc in Vietnam. In 1977, the Medal of Freedom was awarded posthumously to Rev. Martin Luther King Jr. in a White House ceremony. In 1987, Bo Jackson signed a contract to play football for the L.A. Raiders for five years. He also continued to play baseball for the Kansas City Royals. In 1995, full diplomatic relations were established between the United States and Vietnam.

WEDNESDAY WISDOM: “What you resist not only persists but will grow in size.”—Carl Jung, a Swiss psychiatrist and psychoanalyst who founded analytical psychology

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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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