Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
July 19th, 2018
Benefits & Administration
Employees Want Financial Education and Employers Are Stepping Up
More than two in five employers report an increased demand for financial education among employees in the past two years, and employers are answering the call. The International Foundation of Employee Benefit Plans found 63% of employers currently provide financial education for their workforce. Employers are providing education on a variety of topics, but the top five most common topics covered in employer-sponsored financial education programs include retirement plan benefits, pre-retirement financial planning, budgeting, investment management and retiree health care.Read more >
Financial Advisers Key to Spending and Saving Confidence
Two-thirds of Americans who work with a financial adviser believe they know how much to spend now and to save for the future.Read more >
Industry Voices
Communicating Health Savings Account Value
Jamie Janvier, senior marketing manager at ConnectYourCare, discusses why health savings accounts (HSAs) can be a great help in saving for retirement health care expense and how employers can use data to communicate this value.Read more >
2021 DC Plan Benchmarking Survey
Working Past Age 65 May Seem Like a Great Idea …
2022 Retirement Industry Trends to Follow
TRIVIAL PURSUITS: Residents of the Island of Misfit Toys
Satisfying Electronic Disclosure Requirements for SPDs to New Hires
Economic Events
Privately-owned housing starts in June were at a seasonally adjusted annual rate of 1,173,000, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly announced. This is 12.3% below the revised May estimate of 1,337,000 and is 4.2% below the June 2017 rate of 1,225,000.  Single-family housing starts in June were at a rate of 858,000; this is 9.1% below the revised May figure of 944,000. The June rate for units in buildings with five units or more was 304,000.
Market Mirror

Wednesday, the Dow closed 79.40 points (0.32%) higher at 25,199.29, the NASDAQ was virtually unchanged at 7,854.44, and the S&P 500 increased 6.07 points (0.22%) to 2,815.62. The Russell 2000 was up 4.61 points (0.27%) at 1,691.87, and the Wilshire 5000 gained 98.25 points (0.33%) to finish at 29,438.66.


The price of the 10-year Treasury note was down 3/32, increasing its yield to 2.876%. The price of the 30-year Treasury bond decreased 13/32, bringing its yield up to 2.989%.
Sponsored message from PIMCO
Defined Contribution: Four Themes for 2018 and Beyond
. TDFs – blend active and passive
. Retirement income – don’t chase perfection
. Equities – consider lower-fee systematic strategies
. Fixed income – as allocations peak, go activeRead more >
Former State Street Executive Convicted of Defrauding Transition Management Customers
The SEC’s complaint alleges that the former executive led a scheme to add secret commissions to securities trades performed for at least six clients of State Street’s transition management business, which helps institutional clients move their investments between asset managers or otherwise restructure large investment portfolios. State Street replies that “since the overcharging was discovered [we] have substantially enhanced our controls.”Read more >
Proposed Bill Would Allow Employers to Provide Side-Car Emergency Savings Accounts
A package of bills sponsored by four U.S. Senators would also increase access to workplace retirement savings accounts and help workers who already have retirement accounts save more.Read more >
‘Low-Cost’ Does Not Always Mean ‘Better’ TDFs
According to Morningstar’s 2018 Target-Date Fund Landscape report, many target-date fund (TDF) providers have adapted to meet the burgeoning demand for low-cost options. When TDF providers have launched additional lower-cost series to meet demand, those series generally have been the most popular. However, Morningstar finds not all have produced better performance results than older, more-costly ones. Morningstar warns that the distinction between “active” and “passive” target-date series has become more muddled in recent years.Read more >
Shifting Yield Curve Presents Institutional Investing Opportunities
One broad message Greg Hahn, president and chief investment officer at Winthrop Capital Management, has for institutional investors, especially pension plans that are facing a difficult funding picture, is that there is “so much opportunity emerging out there that people are not pursuing as the fixed-income environment evolves.”Read more >
Small Talk
ON THIS DATE: In 1525, the Catholic princes of Germany formed the Dessau League to fight against the Reformation. In 1799, the Rosetta Stone, a tablet with hieroglyphic translations into Greek, was found in Egypt. In 1942, German U-boats were withdrawn from positions off the U.S. Atlantic coast due to effective American anti-submarine countermeasures. In 1971, in New York City, the topping out ceremony for Two World Trade Center (South Tower) took place. The ceremony for One World Trade Center had taken place on December 23, 1970. In 1974, the House Judiciary Committee recommended that President Richard Nixon should stand trial in the Senate for any of the five impeachment charges against him. 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, Christa McAuliffe of New Hampshire was chosen to be the first schoolteacher to ride aboard the space shuttle.
SURVEY SAYS: We covered a report that gave employers tips for addressing summer workplace issues such as dress code, hygiene and paid time off, among other things. This week, I’d like to know, which summer workplace issues your company experiences. You may respond to this survey by 6 p.m. Pacific time today.Read more >
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Editorial: Alison Cooke Mintzer


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