Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
June 24th, 2015
Benefits & Administration
Analysis Needed for Faculty Reluctant to Retire
TIAA-CREF’s Faculty Career and Retirement Survey finds higher education institution tenured faculty age 50 or older can be divided into three groups—35% expect to retire by normal retirement age; 16% would prefer to retire by normal retirement age, but expect to work longer (they are “reluctantly reluctant”); and 49% would like to and expect to work past normal retirement age (they are “reluctant by choice”). Personal finances are a particular barrier for those reluctantly reluctant. Psychosocial factors are the issue with those reluctant by choice.Read more >
Best Practices for Reducing Fiduciary Liability Risk
When running a retirement plan, sponsors can follow certain best practices to reduce their risk of violating fiduciary duties. It starts with identifying plan fiduciaries, formally defining their roles in writing, and training them to properly perform their functions, says Barb Van Zomeren, vice president of the Employee Retirement Income Security Act (ERISA) and compliance at Ascensus in Brainerd, Minnesota. The sponsor should also establish a formal retirement committee to manage the plan and the investments, ensure the committee meets regularly, and document discussions at the meetings and all decisions made, she says.Read more >
Ask the Experts
Why Form 5500 Fee Info Doesn’t Match Plan Expenses
“I am commencing the process of reviewing the 2014 Form 5500 for our calendar-year Employee Retirement Income Security Act (ERISA) 403(b) plan. I noticed that the fees listed in Schedule C are lower than what I calculate plan expenses to be based on the service provider disclosures that are delivered to us, as well as other documentation. Shouldn’t these figures reconcile?”Read more >
Products, Deals & People
ForUsAll has created a simple and inexpensive 401(k) product for small businesses with 3(16) and 3(38) fiduciary services.Read more >
Is the UAW’s Demand for Return of Pensions a Realistic Ask?
Delay on Catch-Up Provision Allows Employers to Explore Optional SECURE 2.0 Features
Data and Research
Unplanned Financial Challenges Continue to Plague US Workers’ Retirement Savings
Economic Events

Sales of new single-family houses in May were at a seasonally adjusted annual rate of 546,000, according to estimates released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 2.2% above the revised April rate of 534,000 and 19.5% above the May 2014 estimate of 457,000.

New orders for manufactured durable goods in May decreased $4.1 billion or 1.8% to $228.9 billion, the U.S. Census Bureau announced. This decrease, down three of the last four months, followed a 1.5% April decrease. Excluding transportation, new orders increased 0.5%. Excluding defense, new orders decreased 2.1%. Transportation equipment, also down three of the last four months, drove the decrease, down $4.9 billion or 6.4% to $71.7 billion.

Market Mirror

Tuesday, the Dow closed 24.29 points (0.13%) higher at 18,144.07, the NASDAQ ticked up 6.12 points (0.12%) to 5,160.09, and the S&P 500 was up 1.34 points (0.06%) at 2,124.19. The Russell 2000 gained 3.38 points (0.26%) to finish at 1,295.77, and the Wilshire 5000 increased 21.85 points (0.10%) to 22,495.10.

On the NYSE, 3.2 billion shares traded, with 1.4 advancing issues for every declining issue. On the NASDAQ, 2.9 billion shares changed hands, with a 1.3 to 1 ratio of advancers to decliners.

The price of the 10-year Treasury note was down 10/32, bringing its yield up to 2.412%. The price of the 30-year Treasury bond decreased 20/32, increasing its yield to 3.200%.

IRS Publishes Information for Cycle E Restatements
The Internal Revenue Service (IRS) has released subject matter packages that Employee Plans Specialists use when reviewing retirement plan documents. Plan sponsors can also use these packages as a review tool before submitting a determination letter application to the IRS. Plans in Cycle E submit determination letter applications for their plans beginning February 1, 2015, through January 31, 2016. Each subject matter—such as minimum vesting standards, required plan distributions and Section 401(k) requirements—is packaged as a publication and two forms.Read more >
The Internal Revenue Service (IRS) has published a new voluntary correction program (VCP) Submission Kit for correcting contribution failures for money purchase pension plans (MPPs) and target benefit pension plans.Read more >
From the Magazine
What Makes a Successful RFP Process?
What is commoditized in recordkeeping services these days, and how do you get the most out of your provider? It depends on how you approach the request for proposals (RFP) process, adviser Ellen Lander says. “We all get so glib and say [services are] a commodity, but I do see differences [between firms],” says Lander, a principal at Renaissance Benefit Advisors Group in Jamison, Pennsylvania.Read more >
Small Talk
Indiana University Media School researcher and assistant professor Jessica Gall Myrick found even if people watch cat videos on the Internet to procrastinate or while they should be working, the emotional pay-off may actually help them take on tough tasks afterward. Gall Myrick surveyed nearly 7,000 people about their viewing of cat videos and how it affects their moods. Respondents revealed they were more energetic and felt more positive after watching cat-related online media than before.Read more >
ON THIS DATE: In 1844, Charles Goodyear was granted U.S. patent #3,633 for vulcanized rubber. In 1922, the American Professional Football Association took the name of The National Football League. In 1964, the Federal Trade Commission announced that starting in 1965, cigarette manufactures would be required to include warnings on their packaging about the harmful effects of smoking. In 1966, the United States Senate passed what would become the National Traffic and Motor Vehicle Safety Act, which created the nation’s first mandatory federal safety standards for motor vehicles. In 1997, U.S. Air Force officials released a 231-page report dismissing long-standing claims of an alien spacecraft crash almost 50 years earlier in Roswell, New Mexico.
WEDNESDAY WISDOM: “A man has cause for regret only when he sows and no one reaps.” —Charles Goodyear, inventor
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Editorial: Alison Cooke Mintzer


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