Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
July 5th, 2017
Editor’s Note
In this edition of NewsDash, we bring you some of readers’ most popular stories so far in 2017.
Benefits & Administration
Americans Lack Awareness of HSA Benefits
As America’s health insurance industry struggles through a state of uncertainty and Americans face rising health care costs, employers are turning to various strategies to help employees cover medical expenses, including the health savings account (HSA), available to employees with high deductible health plans (HDHP). These products help people save and invest for current and future medical expenses. However, new research by Fidelity Investments suggests many Americans are unaware of the various benefits HSAs can offer.Read more >
MOST READ ARTICLES
1
IRS Announces 2020 Contribution and Benefit Limits
2
The Odds Are Split for Senate SECURE Act Passage This Year
3
Pension Risk Transfer Appetite Is Unabated
4
Congressional Leaders Want SECURE Act Passage in 2019
5
Why Americans Need the SECURE Act
Social Security Reform Should Consider Life Expectancy Gap
Researchers have confirmed that life expectancy at older ages has been rising fastest for the highest socioeconomic groups, according to a paper published by the National Bureau of Economic Research. They found that for those born in 1960, there is a $130,000 gap in benefits between the highest and lowest socioeconomic groups.Read more >
Fidelity Predicts Retirement Industry Trends for 2017
An increased focus on education and wellness and plan designs focusing on retirement income are among trends Fidelity sees as gaining more traction this year.Read more >
Economic Events
Construction spending during May was estimated at a seasonally adjusted annual rate of $1,230.1 billion, nearly the same as the revised April estimate of $1,230.4 billion, the Census Bureau announced. The May figure is 4.5% above the May 2016 estimate of $1,177.0 billion. During the first five months of this year, construction spending amounted to $469.2 billion, 6.1% above the $442.4 billion for the same period in 2016.
Market Mirror

Monday, the Dow closed 129.64 points (0.61%) higher at 21,479.27, the NASDAQ closed 30.36 points (0.49%) lower at 6,110.06, and the S&P 500 increased 5.60 points (0.23%) to 2,429.01. The Russell 2000 gained 11.90 points (0.84%) to finish at 1,426.68, and the Wilshire 5000 was up 54.67 points (0.22%) at 25,285.08.

The price of the 10-year Treasury note decreased 14/32, bringing its yield up to 2.350%. The price of the 30-year Treasury note fell 23/32, increasing its yield to 2.869%.

Compliance
Aon Hewitt Targeted in Kickback Lawsuit Filed by Caterpillar Plan
The central claims in the proposed class action suggest plaintiffs feel they overpaid significantly for advisory services, with the excess payments essentially amounting to kickbacks returned to the defendants.Read more >
Taxation of Retirement Accounts Is On the Table
One Employee Retirement Income Security Act (ERISA) industry advocate directly engaged with members of Congress says he expects more proposals to emerge from Republicans seeking to “significantly alter our retirement system,” most likely as a part of tax reform.Read more >
From the Magazine
Many Employers Fail to Offer HSAs in Conjunction With HDHPs
Even though the number of employers offering a high-deductible health plan (HDHP) seems to be on the rise, three out of five employers fail to offer a health savings account (HSA) alongside that benefit, according to “A Crack in the Foundation,” the first set of findings from the fourth annual “Guardian Workplace Benefits Study.”Read more >
Small Talk
The United States ranks first in an international study of employee happiness by global staffing firm Robert Half. In the U.S., the highest-ranking factors for employee happiness are having pride in one’s organization, feeling appreciated and being treated with fairness and respect. The research also examined interest levels at work.Read more >

ON THIS DATE: In 1863, U.S. Federal troops occupied Vicksburg, Mississippi, and distributed supplies to the citizens. In 1865, William Booth founded the Salvation Army in London. In 1865, the U.S. Secret Service Division was created to combat currency counterfeiting, forging and the altering of currency and securities. In 1892, Andrew Beard was issued a patent for the rotary engine. In 1935, U.S. President Franklin Roosevelt signed the National Labor Relations Act into law. The act authorized labor to organize for the purpose of collective bargaining. In 1946, the bikini bathing suit, created by Louis Reard, made its debut during a fashion show at the Molitor Pool in Paris. In 1947, Larry Doby signed a contract with the Cleveland Indians, becoming the first black player in the American League. In 1950, U.S. forces engaged the North Koreans for the first time at Osan, South Korea. In 1975, Arthur Ashe became the first black man to win a Wimbledon singles title when he defeated Jimmy Connors.

 

WEDNESDAY WISDOM: “Freedom is never given; it is won.”—A. Philip Randolph, African-American civil rights movement leader
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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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