Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
July 13th, 2017
Benefits & Administration
HSA Holders Missing Out on Investment Returns
Owners of health savings accounts (HSAs) are primarily using them for immediate needs, such as deductibles, coinsurance and copayments, according to the Employee Benefit Research Institute (EBRI). Thus, they are using HSAs more like checking accounts than investment vehicles, EBRI says. With 96% of HSA account holders investing their money in cash, HSA owners are grossly missing out on the tax benefits of any interest or capital earnings on assets in the accounts building up tax free, EBRI notes. Read more >
Lower Premiums May Drive Employees into HSA-Eligible Plans
New research by the Employee Benefit Research Institute (EBRI) indicates that reducing or eliminating their health insurance premiums may be the biggest incentive toward driving funds into health savings account (HSA)-eligible plans. Plan sponsors may also consider accelerating their contributions to the HSA. Read more >
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Employees in Two States Miss Out on One HSA Benefit
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Some Help for Women’s Retirement Savings Gap May Be Coming
Products, Deals and People
The National Business Group on Health is releasing two new tools designed to help employers understand and evaluate Accountable Care Organizations (ACOs). These are self-insured health benefit plan models in which employers directly contract with medical providers and third-party administrators in order to design efficient plans while lowering costs. Read more >
Market Mirror

Wednesday, the Dow was up 123.07 points (0.57%) at 21,532.14, the NASDAQ climbed 67.87 points (1.10%) to 6,261.17, and the S&P 500 closed 17.72 points (0.73%) higher at 2,443.25. The Russell 2000 gained 11.27 points (0.80%) to finish at 1,424.32, and the Wilshire 5000 increased 181.56 points (0.72%) to 25,411.01.

The price of the 10-year Treasury note increased 12/32, bringing its yield down to 2.321%. The price of the 30-year Treasury bond climbed 25/32, decreasing its yield to 2.886%.

Sponsored message from Enterprise Iron
Facing The Challenges Of Reaching A Multi-Generational Retirement Population
The challenges of delivering a multi-generational retirement experience: How effective and efficient are your service providers? Read more >
Compliance
A multi-agency federal and state investigation has led to the guilty plea and imprisonment of an Ohio businessman who orchestrated a Ponzi scheme that included the theft of $1.9 million from an employee benefit plan, according to the Department of Labor (DOL). Read more >
MFS Accused of Engaging in Prohibited Transactions in 401(k)s
A lawsuit claims MFS used its 401(k) plans “as an opportunity to promote MFS’s mutual fund business and maximize profits at the expense of the plans and their participants.” Read more >
From the Magazine
A Heavy Load
Millennials, ranging from roughly the late teens through mid-30s, may not be getting the guidance they need when it comes to their retirement plan and overall financial wellness—something that may be increasingly important as they age. Read more >
Investing
Mega Plans Split on Custom TDFs
Slightly more than half of mega plan sponsors in Northern Trust’s book of business deploy custom target-date strategies. Read more >
Small Talk

ON THIS DATE: In 1585, a group of 108 English colonists, led by Sir Richard Grenville, reached Roanoke Island, North Carolina. In 1754, at the beginning of the French and Indian War, George Washington surrendered the small, circular Fort Necessity in southwestern Pennsylvania to the French. In 1787, the U.S. Congress, under the Articles of Confederation, enacted the Northwest Ordinance, which established the rules for governing the Northwest Territory, for admitting new states to the Union and limiting the expansion of slavery. In 1863, opponents of the Civil War draft began three days of rioting in New York City, which resulted in more than 1,000 casualties. In 1954, in Geneva, the United States, Great Britain and France reached an accord on Indochina which divided Vietnam into two countries, North and South, along the 17th parallel. In 1972, Carroll Rosenbloom (owner of the Baltimore Colts) and Robert Irsay (owner of the Los Angeles Rams) traded teams. In 1978, Lee Iacocca was fired as president of Ford Motor Co. by chairman Henry Ford II.

SURVEY SAYS: Even if I felt I deserved it, I have never felt comfortable asking an employer to give me a salary raise. This week, I’d like to know, have you ever asked an employer for a raise, and if so, how did it turn out? You may respond to this week’s survey by 6 p.m. Pacific time today. Read more >
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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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