Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
July 18th, 2017
Benefits & Administration
Social Security May be Adequate for Low-Income Workers
The American Enterprise Institute questions the benefit of automatically enrolling low-income workers into state-run IRAs. Looking at how that would affect their current financial situation and eligibility for other benefits, the Institute concludes, “Many low-income workers may be rational in not saving substantial amounts for retirement over and above what Social Security will provide.” Read more >
There Is No Single 'Right' Measurement for DB Plan Funding
“A single number often cannot comprehensively address an issue as complex as the obligation or funded status of a pension plan,” the American Academy of Actuaries notes in an Issue Brief. The paper discusses different measurements and their applications in certain scenarios. The purpose of the measurement determines which number is “right,” according to the academy. Read more >
MOST READ ARTICLES
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Adidas Sued Over Excessive Fees for 401(k) Participants
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Yale Sued Over Wellness Program ‘Penalty’
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Employees in Two States Miss Out on One HSA Benefit
5
Some Help for Women’s Retirement Savings Gap May Be Coming
Longevity Annuities Can Improve DC Plan Participant Retirement Wealth
Research finds that defined contribution (DC) retirement plan participants can gain retirement wealth from the offering of a longevity annuity within their plans. Researchers first found that introducing a longevity income annuity into the DC plan investment menu is attractive to the majority of plan participants. They conclude that “including well-designed LIA defaults in DC plans yields quite positive consequences for …workers.” Read more >
Products, Deals and People
DCIIA Publishes Financial Wellness Primer
Among other things, the guide discusses why employers are well-suited to play a role in promoting financial literacy and wellness. Read more >
Market Mirror

Yesterday, the Dow was down 8.02 points (0.04%) at 21,629.72, the NASDAQ increased by 1.97 (0.03%) to 6,314.43, and the S&P 500 was virtually unchanged at 2,459.14. The Russell 2000 closed 2.79 points (0.20%) higher at 1,431.60, and the Wilshire 5000 was up 7.58 points (0.03%) at 25,577.50.

The price of the 10-year Treasury note was up 6/32, decreasing its yield to 2.315%. The price of the 30-year Treasury bond increased 10/32, bringing its yield down to 2.905%.

Compliance
ERISA Suit Challenging Voya Stable Value Funds Rejected
The lawsuit unsuccessfully alleged Voya does not disclose to its retirement plan clients and their respective participants the amount of stable value fund spread it collects. Read more >
Small Talk

ON THIS DATE: In 1927, Ty Cobb set a major league baseball record by getting his 4,000th career hit. He hit 4,191 before he retired in 1928. In 1932, the U.S. and Canada signed a treaty to develop the St. Lawrence Seaway. In 1936, the first Oscar Meyer Wienermobile rolled out of General Body Company’s factory in Chicago. In 1947, U.S. President Harry Truman signed the Presidential Succession Act, which placed the Speaker of the House and the Senate President Pro Tempore next in the line of succession after the vice president. In 1985, Jack Nicklaus II, at age 23, made his playing debut on the pro golf tour at the Quad Cities Open in Coal Valley, Illinois.

 

NOTE: Yesterday’s ON THIS DATE said the Harvard School of Dental Medicine, established in 1867, was the first dental school in the U.S. A reader provided me with evidence that the Baltimore College of Dental Surgery, established in 1840 and now The University of Maryland School of Dentistry, was the first dental school in the U.S.

TRIVIAL PURSUITS: From where does the phrase ‘tuckered out’ come? 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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