Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
July 3rd, 2017
Benefits & Administration
More Plan Sponsors Permitting Roth Conversions
Many more organizations are permitting conversion of funds in a traditional 401(k) account into a Roth 401(k) account compared with 2013, according to research from the Society for Human Resources Management. The idea seems to be to help employees establish better tax diversity in their retirement holdings—as well as more controlled and rational ways of spending down their collected wealth once their working life ends. Read more >
Products, Deals and People
Retirement Industry People Moves
Pentegra hires 403(b) consultant; Ascensus acquires Retirement Plan Administrative Service; Voya hires 401(k) leader; and more. Read more >
MOST READ ARTICLES
1
J.P. Morgan Agrees to Settle Stable Value Funds Suit
2
SECURE Act Passes House, Bringing Calls for Senate Collaboration
3
Individuals, Employers and Government All Play a Part in Retirement Readiness
4
Participant Loans: A Fiduciary Storm Brewing?
5
What to Know About Financial Audits Filed with Form 5500s
Economic Events

THE ECONOMIC WEEK AHEAD: Today, the Census Bureau will report about construction spending for May. Wednesday, 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 62.60 points (0.29%) higher at 21,349.63, the NASDAQ was down 3.93 points (0.06%) at 6,140.42, and the S&P 500 was up 3.71 points (0.15%) at 2,423.41. The Russell 2000 was virtually unchanged at 1,415.35, and the Wilshire 5000 increased 36.52 points (0.14%) to 25,230.41.

The price of the 10-year Treasury note was down 10/32, increasing its yield to 2.302%. The price of the 30-year Treasury bond decreased 12/32, bringing its yield up to 2.833%.

WEEK’S WORTH: For the week ending June 30, the Dow was down 0.21%, the NASDAQ lost 1.99%, and the S&P 500 finished 0.61% lower. The Russell 2000 was up 0.04%, and the Wilshire 5000 decreased 0.47%.

Compliance
Washington Republicans Contemplate Major Benefit Reforms
Both on the health care and retirement planning fronts, House and Senate Republican leadership has big plans for what they would like to accomplish. How much they can get done is another question. Read more >
DOL Issues RFI About Fiduciary Rule
The Employee Benefits Security Administration (EBSA) of the Department of Labor (DOL) is publishing a request for information (RFI) in connection with its examination of the final fiduciary rule under the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code (IRC). The agency’s examination also includes the new and amended administrative class exemptions from the prohibited transaction provisions of ERISA and the IRC that were published in conjunction with the rule. The request for information specifically seeks public input that could form the basis of new exemptions or changes/revisions to the rule and prohibited transaction exemptions (PTEs). It also asks whether provisions of the rule already in place should be delayed further. Read more >
Investing
The Case for Long-Horizon Investing in DB Plans
A recent study by Willis Towers Watson (WTW) suggests that a long-horizon investor can stand to gain a net premium return of up to 1.5% annually depending on the asset manager’s size, strategy and governance. The research revolves around the idea that long-horizon investing offers significant opportunities for return, while downplaying drags on return. It identified eight building blocks or strategies for long-horizon investing. Read more >
Small Talk

ON THIS DATE: In 1775, U.S. General George Washington took command of the Continental Army at Cambridge, Massachusetts. In 1863, the U.S. Civil War Battle of Gettysburg, Pennsylvania, ended after three days. It was a major victory for the North as Confederate troops retreated. In 1890, Idaho became the 43rd state to join the United States of America. In 1922, “Fruit Garden and Home” magazine was introduced. It was later renamed “Better Homes and Gardens.” In 1930, Congress created the U.S. Veterans Administration. In 1940, Bud Abbott and Lou Costello debuted on NBC radio. In 1950, U.S. carrier-based planes attacked airfields in the Pyongyang-Chinnampo area of North Korea in the first air-strike of the Korean War. In 1962, Jackie Robinson became the first African American to be inducted into the National Baseball Hall of Fame. In 1986, U.S. President Ronald Reagan presided over a ceremony in New York Harbor that saw the relighting of the renovated Statue of Liberty. In 1991, U.S. President George H.W. Bush formally inaugurated the Mount Rushmore National Memorial in South Dakota.

SURVEY SAYS RESPONSES: Last week, I asked NewsDash readers, “Are you taking additional time off surrounding the 4th?” More than half (50.7%) of responding readers indicated they are taking off Monday, the 3rd, while 39.4% said they are not taking any additional time off. Seven percent are taking off the whole week, and 2.8% are taking off Monday and Wednesday. In verbatim comments, several readers expressed they didn’t need to take additional time off because their employers also gave them Monday, the 3rd, as a day off. Some decided to make it a really long weekend, and took off Friday as well as Monday. One reader expressed that holidays that break up the week are difficult because it seems like you have two Mondays in the week. Readers that are not taking time off expressed that they can be more productive since many in the office will be taking time off. Editor’s Choice goes to the reader who said: I’ll take a 4 day work week regardless of how it falls. :)” Thanks to everyone who participated in the survey! Read more >

Of course, we at PLANSPONSOR are off tomorrow, so the NewsDash will be back in your inbox Wednesday. Happy Independence Day!

Share the news with a friend! Pass the NewsDash along—and tell your friends/associates they can sign up for their own copy. Read more >

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

Advertising: Paul Zampitella paul.zampitella@strategic-i.com

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