Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
June 10th, 2015
Benefits & Administration
Gen X, Millennials Anticipate Rocky Retirement
Two out of three Americans (66%) expect to be stressed about money in retirement, based on how they are currently saving, according to a new survey released by Bank of America and Merrill Edge. The survey of more than 1,000 Americans with investable assets of $50,000 to $250,000 finds non-retired Generation Xers (74%) and Millennials (67%) are the most likely to predict financial stress in retirement based on how they’re saving right now, while 59% of current retirees say they are not stressed about finances because of how they saved. “Even though current retirees report they are not as anxious about money, younger Americans can learn from their example—that preparation pays off,” says Aron Levine, head of Bank of America Preferred Banking and Merrill Edge.Read more >
While 95% of workers said financial literacy is important, only one-third (35%) feel they are moderately or extremely knowledgeable about financial products and services, a LIMRA study found. Only 28% indicated they are very confident in their abilities to make important financial decisions. Just 17% of workers polled said they were “extremely satisfied” with financial literacy about retirement planning, while managing or reducing debt (32%), avoiding scams and identify theft (31%) and general budgeting (30%) all got higher marks.Read more >
Comparing Lifetime Annuities and Structure Withdrawals
A rigorous new study out of George Mason University takes a strong positive stance on using lifetime annuities over structured withdrawals in defined contribution (DC) plans.Read more >
The number of eligible employees participating in Wells Fargo-administered plans rose 13% between 2011 and 2015. Wells Fargo says the increase in participation correlates to an increase in plan sponsors opting for automatic enrollment of their participants, which now stands at 40% of Wells Fargo-administered plans versus 30% in 2011. The analysis found Millennials are the most diversified in their investments.Read more >
Behavioral Finance Q&A with Shachar Kariv
PLANSPONSOR talks with U.C. Berkley’s economics department chair about the role of behavioral finance in improving participant decisionmaking and closing the retirement income gap.  Read more >
IBM Completes $16 Billion Pension Risk Transfer
2022 Recordkeeping Survey
TRIVIAL PURSUITS: How Many States Are in More Than One Time Zone?
TRIVIAL PURSUITS: Meaning and Origin of the Idiom “Watershed Moment?”
Employment, Income Inequality Cited as US Drops to 18th on Natixis Retirement Index
The Washington Post is moving away from both its traditional defined benefit (DB) plan and cash balance plan, and has agreed not to transfer pension liabilities to an insurance company.Read more >
2015 PLANSPONSOR Best in Class 401(k) Plans
PLANSPONSOR honored 29 firms with a new Best in Class 401(k) designation.Read more >
Which plan design elements have had the most influence on the MasterCard and Land O’ Lakes Best in Class designees?Read more >
Products, Deals & People
MassMutual launched an employee benefits guidance tool that helps retirement savers make important financial decisions. The new MapMyBenefits tool provides customized recommendations and guidance about health care coverage, insurance protection and retirement savings, according to MassMutual.Read more >
Economic Events
The U.S. Census Bureau announced that April sales of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations and trading-day differences but not for price changes, were $448.3 billion, up 1.6% from the revised March level, but down 3.3% from the April 2014 level. April sales of durable goods were up 1.2% from last month and were up 2.4% from a year ago. Sales of electrical and electronic goods were up 3.2% from last month and sales of motor vehicle and motor vehicle parts and supplies were up 3.2%. Sales of nondurable goods were up 2.0% from March, but were down 8.2% from last April. Sales of farm product raw materials were up 7.4% from last month and sales of petroleum and petroleum products were up 4.9%.
Market Mirror

The Dow lost 2.51 points (0.01%) to finish at 17,764.04, the NASDAQ decreased 7.76 points (0.15%) to 5,013.87, and the S&P 500 was up 0.87 points (0.04%) at 2,080.15. The Russell 2000 fell 4.04 points (0.32%) to 1,249.66, and the Wilshire 5000 closed 3.48 points (0.02%) lower at 22,014.60.


On the NYSE, 3.2 billion shares traded, with declining issues outnumbering advancing issues nearly 2 to 1. On the NASDAQ, 2.8 billion shares changed hands, with a 1.6 to 1.1 ratio of decliners to advancers.


The price of the 10-year Treasury note was down 16/32, bringing its yield up to 2.441%. The price of the 30-year Treasury bond was down 1 2/32, increasing its yield to 3.172%.

IRS Expands Pre-Approved Plans Program
In Revenue Procedure 2015-36, the Internal Revenue Service (IRS) expands its pre-approved plans program to include defined benefit (DB) plans with cash balance plan features and defined contribution (DC) plans with employee stock ownership plan (ESOP) features. The revenue procedure sets forth additional provisions required by M&P ESOPs and cash balance plans, and modifies prior rules with regard to the eligibility of employees to participate in an ESOP.Read more >
Small Talk
Roughly half (54%) of senior managers reported that workers are asked to contribute to birthdays, anniversaries and baby showers at least annually, according to an OfficeTeam survey.Read more >


ON THIS DATE: In 1692, in Salem Village in the Massachusetts Bay Colony, Bridget Bishop, the first colonist to be tried in the Salem witch trials, was hanged after being found guilty of the practice of witchcraft. In 1752, Benjamin Franklin flew a kite during a thunderstorm and collected a charge in a Leyden jar when the kite was struck by lightning, enabling him to demonstrate the electrical nature of lightning. In 1775, John Adams proposed to Congress, meeting in Philadelphia, that the men laying siege to Boston at that time should be considered a Continental Army led by a general. In 1854, the U.S. Naval Academy in Annapolis, Maryland, held its first graduation. In 1902, the “outlook” or “see-through” envelope was patented by Americus F. Callahan. In 1935, in New York City, two recovering alcoholics, one a New York broker and the other an Ohio physician, founded Alcoholics Anonymous (A.A.), a 12-step rehabilitation program. In 1943, Laszlo Biro, a Hungarian journalist, patented the ballpoint pen. In 1944, the youngest pitcher in Major League Baseball (MLB) pitched his first game. Joe Nuxhall was 15 years old (and 10 months and 11 days).


WEDNESDAY WISDOM: “A day of worry is more exhausting than a week of work.” —John Lubbock, English music conductor and singer
Share the good news with a friend! Pass the Dash along – and tell your friends/associates they can sign up for their own copy.Read more >

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Copyright © Asset International, Inc., 2015.

All rights reserved.  No reproduction without prior authorization.

Editorial: Alison Cooke Mintzer


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