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Data and Research
High Equity Allocations at Retirement a Dangerous Path for Retirement Income
High Equity Allocations at Retirement a Dangerous Path for Retirement Income
A TDF with a moderate equity allocation at retirement and an inflation-protected bond portfolio that uses LDI principles mitigates the various risks participants face in retirement.
Ask the Experts
Questions About Excluding Some Deferrals From Matching Contributions
I currently work with an ERISA 403(b) non-safe harbor plan that matches 100% of the first 3% of elective salary deferrals. The plan sponsor wishes to change the formula so that only employees who defer at least 3% of pay receive the 3% employer contribution. Thus, unlike the current formula, if an employee deferred 1% or 2%, the employee would not receive an employer contribution. Is the proposed formula possible? And, if so, would the 3% employer contribution still be considered a matching contribution for ACP testing purposes?”
Most Read
Participants Will Need Support to Understand Lifetime Income Projections
Data and Research
DB Plans Retain Cost Advantage Over DC Plans
Milliman Accused of Failing to Prune Bad Investments From 401(k)
Economic Events
In June, the Consumer Price Index for All Urban Consumers (CPI-U) rose 0.9% on a seasonally adjusted (SA) basis; rising 5.4% over the last 12 months, not seasonally adjusted (NSA), the Bureau of Labor Statistics reported. The index for all items less food and energy increased 0.9% in June, SA; up 4.5% over the year, NSA.

Real average hourly earnings for all employees decreased 0.5% in June, SA. Average hourly earnings increased 0.3% and CPI-U increased 0.9%. Real average weekly earnings decreased 0.9% over the month.
Market Mirror
Tuesday, the Dow was down 107.39 points (0.31%) at 34,888.79, the Nasdaq closed 55.59 points (0.38%) lower at 14,677.65, and the S&P 500 decreased 15.42 points (0.35%) to 4,369.21. The Russell 2000 fell 42.96 points (1.88%) to 2,238.86, and the Wilshire 5000 lost 275.77 points (0.60%) to finish at 45,513.62.

The price of the 10-year Treasury note decreased 27/32, bringing its yield up to 1.422%. The price of the 30-year Treasury bond fell 32/32, increasing its yield to 2.042%.
Worker Misclassification Alleged in ERISA Lawsuit
A man who worked for Yum! Brands for 25 years says he was denied retirement and other benefits because the company classified him as an independent contractor.
What to Look for in an SDBA
Self-directed brokerage accounts have advantages, but there are some drawbacks plan sponsors should consider.
Small Talk
ON THIS DATE: In 1798, Congress passed the Sedition Act. The act made it a federal crime to write, publish, or utter false or malicious statements about the U.S. government. In 1881, Sheriff Pat Garrett shot Henry McCarty, popularly known as Billy the Kid, to death at the Maxwell Ranch in New Mexico. In 1913, Gerald R. Ford was born Leslie Lynch King, Jr. in Omaha, Nebraska. In 1951, the George Washington Carver National Monument in Joplin, Missouri, became the first national park to honor an African American. In 1965, the American space probe Mariner 4 flew by Mars, and sent back photographs of the planet. In 1967, Eddie Mathews (Houston Astros) hit his 500th career home run. In 1968, Atlanta Braves slugger Henry “Hank” Aaron hit the 500th home run of his career in a 4-2 win over the San Francisco Giants. In 2015, NASA’s New Horizons spacecraft became the first space mission to explore Pluto.

WEDNESDAY WISDOM: “Never eat spinach just before going on the air.”—Dan Rather, journalist
Industry Intel Roundup—Thought Leadership
PLANSPONSOR is pleased to present the next edition of our Industry Intelligence roundup. This week, we are featuring content from thought leadership authorities. The content was created to educate, inform and offer ideas for plan sponsors regarding plan design, investing, administration and compliance.
SPONSORED BY: Edelman Financial Engines
What’s Next for Retirement Income?
The retirement industry has always adapted to support the shifting financial complexities facing American workers. Recent events have put a spotlight on the need for additional retirement income support. While there may not be a universal solution for all employees, there are steps plan sponsors can take to give participants confidence in planning for a smooth transition into retirement.
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