Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
July 19th, 2017

Retirement Industry People Moves

Guardian Financial Partners opens in Orange County; Transamerica names regional vice president for Retirement Plans; Josh Cohen will join PGIM as head of Institutional Defined Contribution; and more. Read more >
Benefits & Administration
Saving for Retirement Not a Current Priority for Many Millennials
Ten percent of Millennials consider retirement planning a current priority. Meanwhile, 37% said retirement is too far away too address as a main goal, particularly in light of current financial responsibilities. Twenty-two percent of respondents said they would rather pay off their accumulated debts first. Read more >
Many Employees Would Choose Student Loan Assistance Over 401(k)
More than half of those with student debt would prefer monthly contributions towards their loan debt rather than health care benefits, and nearly 48% would choose student loan assistance over a 401(k), according to a survey by student loan management assistance provider IonTuition. However, it is feasible, budget-wise, for participants to participate both in a student loan repayment assistance program and a defined contribution (DC) plan, says Balaji “Raj” Rajan, CEO of IonTuition. Read more >
MOST READ ARTICLES
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House Committee Advances Bill to Establish Union Pension Lifeline Program
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The Senate Math That Could Block SECURE Act
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Open MEPs Not for Every Plan Sponsor
5
Employers Encouraged to Offer Multi-Dimensional Wellness Programs
Employers Have Shifted Allocation of Benefits Dollars
The total cost of employer-provided benefits—health care, retirement and postretirement medical—rose from 14.8% of pay in 2001 to 18.3% of pay in 2015, a jump of 24%, according to a Willis Towers Watson analysis. Trends reflect a seismic shift in the allocation of benefit dollars, the firm says. In 2001, active health care costs comprised about two-fifths of benefits while retirement benefits made up the remaining three-fifths. By 2015, the ratio had flipped, with active health care benefits accounting for slightly less than two-thirds of costs and the retirement share dropping to slightly more than one-third. But, there seems to be a disconnect between employees’ primary concerns, needs and preferences and the reshuffling of employer dollars. Read more >
Market Mirror

Tuesday, the Dow closed 54.99 points (0.25%) lower at 21,574.73, the NASDAQ closed 29.87 points (0.47%) higher at 6,344.31, and the S&P 500 increased by 1.47 (0.06%) to 2,460.61. The Russell 2000 was down 3.99 points (0.28%) at 1,427.61, and the Wilshire 5000 was up 10.22 points (0.04%) at 25,587.72.

The price of the 10-year Treasury note increased 16/32, bringing its yield down to 2.261%. The price of the 30-year Treasury bond climbed 1 5/32, decreasing its yield to 2.847%.

Industry Voices
Uncovering Hidden Risks in Fixed-Income Target-Date Fund Allocations
Brett Wander and Jake Gilliam of Charles Schwab say plan sponsors should consider re-examining their target-date fund (TDF) fixed-income allocations, with an eye toward identifying potential heightened downside exposure risk. Read more >
Ask the Experts
Consequence of Offering Non-Eligible Investments in 403(b)s
“What is the consequence of a plan that, though written to permit only 403(b) eligible investments (403(b)(1) fixed/variable annuities and /or 403(b)(7) custodial accounts (mutual funds)), actually offers investments that do not qualify as 403(b) investments in  plan operation? Is this a defect that can be self-corrected?” Read more >
Investing
The world’s 100 largest alternative asset managers saw their assets rise 10% in 2016 to $4 trillion, according to Willis Towers Watson’s Global Alternatives Survey. Among fund types, pension funds hold 33% of alternative assets, followed by wealth managers (15%), sovereign wealth funds (5%), endowments and foundations (2%), banks (2%) and funds-of-funds (2%). Read more >
Small Talk

ON THIS DATE: In 1799, the Rosetta Stone, a tablet with hieroglyphic translations into Greek, was found in Egypt. In 1848, the Women’s Rights Convention took place in Seneca Falls, New York. Bloomers were introduced at the convention. In 1971, in New York, the topping out ceremony for Two World Trade Center (South Tower) took place. In 1974, the House Judiciary Committee recommended that U.S. President Richard Nixon should stand trial in the Senate for any of the five impeachment charges against him. In 1975, the Apollo and Soyuz spacecrafts separated after being linked in orbit for two days. In 1984, Geraldine Ferraro was nominated by the Democratic Party to become the first woman from a major political party to run for the office of U.S. Vice-President. In 1985, George Bell won first place in a biggest feet contest with a shoe size of 28-1/2. Bell, at age 26, stood 7 feet 10 inches tall. In 1985, Christa McAuliffe of New Hampshire was chosen to be the first schoolteacher to ride aboard the space shuttle.

 

 

WEDNESDAY WISDOM:“All the art of living lies in a fine mingling of letting go and holding on.”—Havelock Ellis, British physician

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

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