Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
June 14th, 2017
Benefits & Administration
Helping Employees With College Debt and Savings
Offering workers help in managing or even paying back their student loans is a benefit valued by employees and will ultimately help them save for retirement. Read more >
Competing Priorities Keep Participants from Saving What They Should
Lincoln Financial Group’s 2017 Lincoln Retirement Power Participant Study showed that while most individuals are confident and optimistic about retirement savings, the majority of participants acknowledge they are not saving as much as they think they need to in order to meet their retirement savings needs. The study shows that competing financial priorities are the culprit creating this conundrum of confidence. Read more >
May DB Funded Status Measures Mixed
The differences depend on what defined benefit (DB) plans are tracked and how DB funded status is tracked. Read more >
MOST READ ARTICLES
1
AT&T Sued Over Calculation of Early Retirement Benefits
2
Congressional Leaders Want SECURE Act Passage in 2019
3
Social Security Administration Announced COLA for 2020
4
New Lawsuit Highlights Importance of Cybersecurity for Retirement Plans
5
IRS Releases 2019-2020 Priority Guidance Plan
Favorable Changes for HSAs Hidden in GOP Health Care Reform?
During a recent conversation with PLANSPONSOR, Chad Wilkins, president of HSA Bank, and Kevin Robertson, senior vice president, outlined their expectations for health care reform and other hot-button items on the policy agenda in Washington. According to the pair, while much of the media attention around health care reform has centered on the more politically charged components of the Affordable Care Act (ACA)—coverage mandates, subsidies, penalties, pre-existing conditions coverage requirements, etc.—less attention has been paid to the GOP healthcare proposals regarding health savings accounts (HSAs) and consumer-directed health plans (CDHPs). Read more >
Economic Events

The Producer
Price Index for final demand was unchanged in May, the Bureau of Labor
Statistics reported. Final demand prices rose 0.5% in April and edged down 0.1%
in March. In May, a 0.3% increase in the index for final demand services offset
a 0.5% decline in prices for final demand goods.

Sponsored message from Conning
Breaking the Pension Funding Stalemate  LDI strategies may help sponsors overcome low yields, downside risk, indecision to help improve plan funding status. Read more >
Market Mirror

Tuesday, the Dow gained 92.80 points (0.44%) to finish at
21,328.47, the NASDAQ closed 44.90 points (0.73%) higher at 6,220.37, and the
S&P 500 increased 10.96 points (0.45%) to 2,440.35. The Russell 2000 was up
6.77 points (0.48%) at 1,425.98, and the Wilshire 5000 climbed 130.15 points
(0.52%) to 25,401.15.

The price of the 10-year Treasury note was up 1/32,
decreasing its yield to 2.210%. The price of the 30-year Treasury bond
increased 2/32, bringing its yield down to 2.865%.

Compliance
Northrop Grumman Settles ERISA Suit
Employees of Northrop Grumman have reached an agreement with their employer to resolve claims in the long-running matter of In re Northrop Grumman Corp. ERISA Litigation, a class action lawsuit initially filed back in 2006. The parties reached a $16.75 million settlement amount, to be used to improve the administration of the retirement plans in question and to compensate employees and retirees. In the underlying suit, the plaintiffs alleged, among other claims, that Northrop fiduciaries violated their duties to employees in two 401(k) retirement plans by improperly causing those plans to pay Northrop for administrative services. Read more >
Ask the Experts
“I work with a 403(b)(7) plan with employer matching and employer non-elective contributions in addition to elective deferral contributions. The plan doesn’t permit age 59-1/2 and hardship withdrawals. The plan is transferring to a 403(b)(1) annuity contract and would like to permit age 59-1/2 withdrawals from all sources and hardship distributions of elective deferral contributions.” Read more >
Investing
Wells Fargo’s Investor and Retirement Optimism Index offers some insight on what investors think of the interest rate environment and how they intend to address it. Read more >
Small Talk
With Father’s Day approaching, a recent survey from John Hancock Retirement Services reveals how fathers can have a significant impact on how one prepares for his or her financial future. More than half of Americans surveyed (56%) say their father influenced their retirement savings habits, and the majority of Americans with retired fathers (62%) say their retirement plans are at least a little similar to their fathers’. Read more >

ON THIS DATE: In 1775, the Continental Army was founded by the Second Continental Congress for purposes of common defense. This event is considered to be the birth of the United States Army. In 1777, the Continental Congress in Philadelphia adopted the “Stars and Stripes” as the national flag of the United States. The Flag Resolution stated “Resolved: that the flag of the United States be made of thirteen stripes, alternate red and white; that the union be thirteen stars, white in a blue field, representing a new Constellation.” In 1834, Isaac Fischer Jr. patented sandpaper. In 1846, a group of U.S. settlers in Sonoma proclaimed the Republic of California. In 1900, Hawaii became a U.S. territory. In 1922, Warren G. Harding became the first U.S. president to be heard on radio. The event was the dedication of the Francis Scott Key memorial at Fort McHenry. In 1943, the U.S. Supreme Court ruled that schoolchildren could not be made to salute the U.S. flag if doing so conflicted with their religious beliefs. In 1951, “Univac I” was unveiled. It was a computer designed for the U.S. Census Bureau and billed as the world’s first commercial computer. In 1952, the Nautilus was dedicated. It was the first nuclear powered submarine. In 1954, U.S. President Dwight D. Eisenhower signed an order adding the words “under God” to the Pledge of Allegiance. In 1954, Americans took part in the first nation-wide civil defense test against atomic attack. In 1989, former U.S. President Ronald Reagan received an honorary knighthood from Britain’s Queen Elizabeth II.

 

WEDNESDAY WISDOM: “I want to congratulate all the men out there who are working diligently to be good fathers, whether they are stepfathers, or biological fathers or just spiritual fathers.”—T. D. Jakes, pastor

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

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