Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
July 2nd, 2018
Benefits & Administration
Interest Crediting Rate Used Key to Cash Balance Plan Outcomes
“Plan sponsors that have adopted or moved to market return design structures have reduced or eliminated market and cost volatility from their retirement program while providing participants with professionally managed investment returns that have produced better participant outcomes,” a report from October Three concludes. Read more >
Cerulli: Participants Are ‘Generally Clueless’ About DC Plan Decumulation
A new Cerulli Associates survey suggests that at least half of 401(k) plan participants have no idea what to do with the savings they have diligently set aside for retirement. Read more >
Sponsors Need to Pay Attention to HSA Investment Lineup
HSAs need to offer equities, multi-asset classes and fixed income, Devenir says. Read more >
Administration Basics: What Is a Strategic DB Plan Termination?
Experts with cash balance plan design and administration provider Kravitz define the concept of strategic plan termination—what the pros and cons are, and what an employer’s responsibilities entail under IRS and PBGC regulations. Read more >
Products, Deals and People
Retirement Industry People Moves
Voya hires VP focused on 403(b), 457 and 401(a) plans; Ascensus acquires TPA firm; Fidelity adds senior executive to Health and Welfare Practice; and more. Read more >
MOST READ ARTICLES
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An Accurate Perception of Their Finances Eludes Many Americans
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Innovative Health Cost Saving Strategies Paying Off for Employers
Economic Events

THE ECONOMIC WEEK AHEAD: Today, the Census Bureau will report about construction spending for May. Tomorrow, it will report about factory orders for May. Thursday, the Labor Department will issue its initial claims report. Friday, the Bureau of Labor Statistics will reveal the unemployment rate for June.

Market Mirror

Friday, the Dow closed 55.36 points (0.23%) higher at 24,271.41, the NASDAQ increased 6.62 points (0.09%) to 7,510.30, and the S&P 500 was up 2.07 points (0.08%) at 2,718.38. The Russell 2000 dipped 1.95 points (0.12%) to 1,643.07, and the Wilshire 5000 was up 24.06 points (0.08%) at 28,394.13.

 

The price of the 10-year Treasury note was down 4/32, increasing its yield to 2.854%. The price of the 30-year Treasury bond decreased 12/32, bringing its yield up to 2.985%.

 

WEEK’S WORTH: For the week ending June 29, the Dow was down 1.26%, the NASDAQ lost 2.37%, and the S&P 500 decreased 1.33%. The Russell 2000 fell 2.52%, and the Wilshire 5000 finished 1.50% lower.

Sponsored message from Vanguard
The Markets Became Volatile-What Will Your Participants Do About It?
Target-date funds can protect participants from impulsive reactions to market volatility. Read more >
Compliance
Fiduciary Responsibilities Seminar to Be Held in Miami
Topics to be covered include: Understanding your plan and your responsibilities; carefully selecting and monitoring service providers; avoiding prohibited transactions; and more. Read more >
IRS and DOL Asked for Better Guidance on Missing Participants
The Plan Sponsor Council of America has heard concerns from its members that they have been or may be subjected to enforcement actions even though the DOL and IRS have not issued comprehensive guidance on missing participants that provide a clear roadmap for compliance. Read more >
Investing
The Case for Using an Institutional Approach for DC Plan Investments
An institutional investment approach uses outcome-oriented investments, broad asset class diversification, best-of-breed investment management, a thoughtful mix of active and passive strategies and are vehicle agnostic, a report notes. Read more >
Small Talk

ON THIS DATE: In 1776, Richard Henry Lee’s resolution that the American colonies “are, and of right ought to be, free and independent States” was adopted by the Continental Congress. In 1850, Benjamin Lane patented a gas mask with a breathing apparatus. In 1881, Charles J. Guiteau fatally wounded President James A. Garfield in Washington, D.C. In 1890, Congress passed the Sherman Antitrust Act. In 1926, Congress established the Army Air Corps. In 1937, American aviation pioneer Amelia Earhart disappeared in the Central Pacific during an attempt to fly around the world at the equator. In 1939, at Mount Rushmore, Theodore Roosevelt’s face was dedicated. In 1947, an object crashed near Roswell, New Mexico. The Air Force insisted it was a weather balloon, but eyewitness accounts led to speculation that it might have been an alien spacecraft. In 1962, Wal-Mart Discount City opened in Rogers, Arkansas. It was the first Walmart store. In 1964, President Lyndon Johnson signed the “Civil Rights Act of 1964” into law. The act made it illegal in the U.S. to discriminate against others because of their race. In 1967, the U.S. Marine Corps launched Operation Buffalo in response to the North Vietnamese Army’s efforts to seize the Marine base at Con Thien. In 1979, the U.S. Mint officially released the Susan B. Anthony coin in Rochester, New York.

SURVEY SAYS RESPONSES: Obviously, I type a lot, given my job. And, I’ve noticed that some letters are either entirely or partially rubbed off. Last week, I thought it would be interesting to see what letters are most likely to be rubbed off on PC or laptop keyboards of NewsDash readers. The vast majority of responding readers (85.5%) indicated they do have letters on their keyboard that are either partially or entirely rubbed off. Among those partially rubbed off, S was by far the most common (49.1%), this was followed by L and M at 35.8% each, E at 34%, D at 28.3% and A at 22.6%. Among letters completely rubbed off, N was most likely, at 56.2%. This was followed by A (37.5%) and E (34.4%). Some of the verbatim comments readers chose to leave were funny. I had a fun time reading the comments. Several suggested that it’s not the amount of use, but other things that make letters rub off on a keyboard. Several readers listed other keys that have faded, such as the “Backspace” or “Enter” key, among others, and a couple of readers noted they have a worn out section on their space key. Editor’s Choice goes to the clever reader who wrote: “With M and N sitting right next door to each other, I get comfused if I’n looking at ny keyboard for which is which!” Thanks to all who participated in the survey! 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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