Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
June 2nd, 2014
Benefit Briefs
Approach Genders Differently in Wellness Initiatives
A survey shows marked differences in the perspectives, behaviors and attitudes male and female employees display towards their health and well-being. Female employees are more concerned about their health and place a higher priority on staying healthy than their male counterparts; however, they are also more likely to view personal stress, affordability and lack of employer support as obstacles to improving their personal health, according to a survey from Aon Hewitt, the National Business Group on Health and The Futures Company.
Buyer's Market
Morningstar Acquires HelloWallet
Investment research firm Morningstar, Inc. has entered into an agreement to acquire online financial wellness provider HelloWallet Holding, Inc. Brock Johnson, head of retirement solutions for Morningstar based in Chicago, tells PLANSPONSOR he believes the two firms are a “natural strategic fit” with HelloWallet assisting with savings strategies and Morningstar then complementing those strategies with investment advice. Aside from Morningstar’s managed account offerings, Johnson believes the acquisition will provide “ a broader solution set” that answers the demand by the market for a more holistic approach to saving and investing, offering more comprehensive services to participants.
A More Complete Picture of DB Plan Liabilities
Measures of defined benefit (DB) plan liabilities currently used by plan sponsors do not tell the whole story, contends a paper from Russell Investments. Plan sponsors typically focus on the projected benefit obligation (PBO) liability metric, says Marcus Muetze, senior consultant at Russell Investments. He tells PLANSPONSOR the PBO, which appears on the corporate balance sheet, is used in calculating pension expense, so it’s a very important metric. Plan sponsors also calculate liabilities used to determine minimum required contributions or Pension Benefit Guaranty Corporation (PBGC) variable rate premiums, but in the paper “Introducing TFBO,” Muetze says these metrics do not tell plan sponsors the whole story about their plan’s long-term economics.
Economic Events
THE ECONOMIC WEEK AHEAD: Today, the Census Bureau will report about construction spending and factory orders for April. Thursday, the Labor Department will issue its initial claims report, and Friday, the Bureau of Labor Statistics will report about nonfarm payrolls and we’ll learn the unemployment rate for May.
Market Mirror
Friday, the Dow inched up 18.43 points (0.11%) to 16,717.17, the NASDAQ slipped 5.33 points (0.13%) to 4,242.62, and the S&P 500 increased 3.54 points (0.18%) to 1,923.57. The Russell 2000 fell 5.57 points (0.49%) to 1,134.50, and the Wilshire 5000 closed 15.36 points (0.08%) higher at 20,348.35. On the NYSE, 3.2 billion shares traded, with a slight lead for advancers. On the NASDAQ, 2.7 billion shares changed hands, with nearly 1.7 declining issues for every advancing issue. The price of the 10-year Treasury note decreased 3/32, increasing its yield to 2.477%. The price of the 30-year Treasury bond was down 1/32, bringing its yield up to 3.327%. WEEK’S WORTH: For the week ending May 30, the Dow was up 0.67%, the NASDAQ climbed 1.36%, and the S&P 500 gained 1.21%. The Russell 2000 increased 0.74%, and the Wilshire 5000 closed 1.12% higher.
Rules & Regulators
The Pension Benefit Guaranty Corporation (PBGC) issued final regulations relaxing some reporting for multiemployer pension plans. The regulations reduce the number of actuarial valuations required for certain small terminated but not insolvent plans, shorten the advance notice filing requirements for mergers in situations that do not involve a compliance determination, and remove certain insolvency notice and update requirements.
How to Avoid Errors in QDROs
There are certain qualified domestic relations order (QDRO) errors plan sponsors and recordkeepers need to keep an eye out for, Bob Toth, an attorney based in Fort Wayne, Indiana, tells PLANSPONSOR. “These mistakes are avoided by providing a draft to the plan administrator or providing to the attorney either a template or a checklist they would use in drafting the order, if the attorney contacts them first,” he says.
A federal district court has ordered an Oregon realtor to repay more than $400,000 to the participants of its profit-sharing plan. Pursuant to a consent judgment entered into by the Department of Labor (DOL), the Portland-based Georgetown Realty Inc., the company’s owner, John Mahaffy, and the Georgetown Realty Inc. Profit Sharing Plan and Trust, will pay $420,127 to the plan for losses due to imprudent real estate investments directed by Mahaffy.
The World at Large
The average retired household in the UK is paying around 30% of its annual income in a combination of direct and indirect taxes, according to analysis of government data by Prudential.
Small Talk
ON THIS DATE:  In 1865, in an event that is generally regarded as marking the end of the Civil War, Confederate General Edmund Kirby Smith, commander of Confederate forces west of the Mississippi, signed the surrender terms offered by Union negotiators. With Smith’s surrender, the last Confederate army ceased to exist. In 1886, in an intimate ceremony held in the Blue Room of the White House, President Grover Cleveland married Frances Folsom, the daughter of Cleveland’s late law partner and friend, Oscar Folsom. Fewer than 40 people were present to witness the 49-year-old president exchange vows with Frances, who at 21 years of age became the youngest first lady in U.S. history. In 1924, with Congress’ passage of the Indian Citizenship Act, the government of the United States conferred citizenship on all Native Americans born within the territorial limits of the country. In 1935, Babe Ruth, one of the greatest players in the history of baseball, ended his Major League playing career after 22 seasons, 10 World Series and 714 home runs. In 1962, Ray Charles’ “I Can’t Stop Loving You” topped the U.S. pop charts.
SURVEY SAYS: Summer Reading List 2014
Last week, NewsDash readers responded to our annual summer reading list survey. In addition to asking readers what they will read this summer, I asked them where they like to read. Half of responding NewsDash readers chose “anywhere I can.” Nearly one-quarter (23.7%) said they like to read on the beach or by the pool; 47.4% on the porch, patio or deck at home or on vacation; 31.6% indoors, where there’s air conditioning and no bugs. As for the reading list, there weren’t as many duplicates as in lists past; duplicates included the Divergent series, the Game of Thrones Series, and Whiskey Beach by Nora Roberts. Some readers listed authors—i.e. David Baldacci, James Rollins—rather than book titles. In verbatim comments, readers expanded on where they like to read—“Nothing better than sitting on the deck at twilight with a glass of wine and a good book,” and “My all-time favorite place to read is in a deck chair on a cruise ship!” for example. One reader lamented that summer is just as busy so doesn’t offer any more time to read than any other season, while another is considering what to read after getting rid of cable TV— “We’re pulling the plug on the cable this summer so maybe I’ll start with ‘War and Peace’ or ‘How to Win Friends’ for it could be the strangest of times.” Editor’s Choice goes to the Dr. Seuss among commenters who said: “I like to read on a plane, on a train, in the sun just for fun, while I’m bathing, not while shaving, while I’m waiting, not while skating, sometimes in bed, while being fed. So many places yet to try, my oh my oh my oh my!” Thank you to everyone who participated in the survey!
Share the good news with a friend! Pass the Dash along – and tell your friends/associates they can sign up for their own copy.
News from   Copyright © Asset International, Inc., 2014. All rights reserved.  No reproduction without prior authorization.

2023 DC Survey Standouts
Understanding Investments and Fees: A Key Part of Plan Committee Education
Data and Research
Financial Literacy Quiz Reveals Americans Lack Understanding of Retirement Income

Editorial: Alison Cooke Mintzer


Subscribe to NEWSDash, click here .

To unsubscribe, click here.

BrightScope / CIO / FWW / Investor Economics / LiquidMetrix / Market Metrics / Matrix Solutions / PLANADVISER / Plan For Life / PLANSPONSOR / Simfund