Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
July 3rd, 2018
Benefits & Administration
Recordkeepers Dedicated to Serving 403(b) Plans Are Established
Following Internal Revenue Service (IRS) regulations for 403(b) plans passed in 2007, many vendors (recordkeepers) exited the business.Read more >
Student Loan Size Does Not Hinder 401(k) Participation
However, a brief released from the Center of Retirement Research shows retirement wealth accumulation is affected by having student loans.Read more >
Plan Designs, Market Rates Lead to Improved DC Plan Metrics in 2017
Participants’ average deferral rate in their defined contribution (DC) plans reached 8.3%, the highest in 10 years, according to a new report from T. Rowe Price, “Reference Point.” Additionally, the number of plans with an initial 6% deferral rate for automatic enrollment (32.4%) surpassed those with 3% as the initial rate (31.9%). Because of the strong markets in 2017, balances increased by an average of $9,583 last year, compared to $2,502 in 2016.Read more >
Products, Deals and People
FiduciaryFirst Enhances Website to Help Clients Better Serve Participants
The new website will include financial wellness and behavioral finance sections, and a brand new education center.Read more >
Federal Student Loan Forbearance Is Ending, but Many Employees Aren’t Prepared
Satisfying Electronic Disclosure Requirements for SPDs to New Hires
2021 Recordkeeping Survey
IRS Announces 2022 Retirement Plan Contribution and Benefit Limits
Federal Student Loan Forbearance Is Ending, but Many Employees Aren’t Prepared
Economic Events
Construction spending during May was estimated at a seasonally adjusted annual rate of $1,309.5 billion, 0.4% above the revised April estimate of $1,304.5 billion, the Census Bureau announced. The May figure is 4.5% above the May 2017 estimate of $1,253.6 billion. During the first five months of this year, construction spending amounted to $497.1 billion, 4.3% above the $476.7 billion for the same period in 2017.
Market Mirror

Yesterday, the Dow was up 35.77 points (0.15%) at 24,307.18, the NASDAQ climbed 57.38 points (0.76%) to 7,567.69, and the S&P 500 closed 8.34 points (0.31%) higher at 2,726.71. The Russell 2000 gained 12.02 points (0.73%) to finish at 1,655.09, and the Wilshire 5000 increased 87.82 points (0.31%) to 28,481.95.


The prices of the 10-year Treasury note and 30-year Treasury bond each were down 2/32, increasing their yields to 2.869% and 2.995%, respectively.
Sponsored message from MetLife
MetLife’s Roberta Rafaloff Discuss How Plan Design Can Lead to More Successful Retirement Outcomes.Read more >
Cactus Feeders ESOP Fiduciaries Agree to Sizable DOL Settlement
Lubbock National Bank, the employee stock ownership plan’s (ESOP)’s trustee, has also agreed to take steps that will ensure it fulfills its fiduciary obligations in the future.Read more >
Considerations for Changing the Interest Crediting Rate in a Cash Balance Plan
In an issue snapshot, the Internal Revenue Service (IRS) discusses when a cash balance plan amendment reduces (or potentially reduces) the interest crediting rate.Read more >
Matrix Trust Company Sued Over Asset Transfers From 403(b) Plans
Matrix is being sued for violating its fiduciary duties because it did not verify that the transfers were authorized by the participants in the 403(b) plans or permissible under the terms of the plans.Read more >
Small Talk
ON THIS DATE: In 1775, U.S. Gen. 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 1898, during the Spanish American War, a fleet of Spanish ships in Cuba’s Santiago Harbor attempted to run a blockade of U.S. naval forces. Nearly all of the Spanish ships were destroyed in the battle that followed. 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 1934, U.S. Federal Deposit Insurance Corporation (FDIC) made its first payment to Lydia Losiger. 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, President Ronald Reagan presided over a ceremony in New York Harbor that saw the relighting of the renovated Statue of Liberty. In 1991, President George H.W. Bush formally inaugurated the Mount Rushmore National Memorial in South Dakota.
TRIVIAL PURSUITS: The Origin of TarpsRead more >
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Editorial: Alison Cooke Mintzer


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