Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
June 25th, 2018
Benefits & Administration
PSNC 2018: The Flavors of Reenrollment
The Pension Protection Act (PPA) was a transformational event in the defined contribution (DC) world, allowing plan sponsors to move DC plans from being simply good to potentially great. Re-enrollments were the next step after asset allocation through the use of the qualified default investment alternative (QDIA), allowing plan sponsors to force participants into a plan with fiduciary protection. According to a panel discussion led by Joe Connell, partner and leader of Retirement Plan Services, Sikich Financial, at the 2018 PLANSPONSOR National Conference, a reenrollment is either an annual or one-time event where the plan sponsor will bring non-savers into the plan or those who were hired before the plan sponsor started auto enrollment. Panelists agreed that the results outweigh the plan sponsor costs. Read more >
Industry Voices
Social Investing and ERISA Plans: The Context Is Significant
Thomas White, partner at Rimon Law, discusses how plan sponsors should consider ESG investments following the DOL’s latest guidance. Read more >
Products, Deals and People
Retirement Industry People Moves
FIA Hires Consultant and Research Analyst Focusing on DC Plans; Ascensus Acquires Firms That Service ESOPs; CalSTRS Employs New Deputy CIO; and more. Read more >
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Economic Events

THE ECONOMIC WEEK AHEAD: Today, the Census Bureau will report about new home sales in May. Tomorrow, the Conference Board will release its Consumer Confidence Index for June. Wednesday, the Census Bureau will report about durable goods orders for May. Thursday, the Labor Department will release its initial claims report.

Market Mirror

Friday, the Dow gained 119.19 points (0.49%) to finish at 24,580.89, the NASDAQ decreased 20.14 points (0.26%) to 7,692.82, and the S&P 500 was up 5.13 points (0.19%) at 2,754.89. The Russell 2000 was down 3.37 points (0.20%) at 1,685.58, and the Wilshire 5000 increased 43.49 points (0.15%) to 28,827.68.

 

The price of the 10-year Treasury note was up 1/32, decreasing its yield to 2.893%. The price of the 30-year Treasury bond increased 4/32, bringing its yield down to 3.037%.

 

WEEK’S WORTH: For the week ending June 22, the Dow fell 2.03%, the NASDAQ decreased 0.69%, and the S&P 500 lost 0.89%. The Russell 2000 was up 0.10%, and the Wilshire 5000 finished 0.72% lower.

Sponsored message from Vanguard
The Markets Became Volatile-What Will Your Participants Do About It?
Target-date funds can protect participants from impulsive reactions to market volatility. Read more >
Compliance
PBCG Asks to Obtain Withdrawal Liability Information from Multiemployer Plans
The agency says it needs the information to estimate its multiemployer program liabilities for purposes of its financial statements. Read more >
K-12 403(b) Plan Sponsors Have New Fiduciary Duties Under Conn. Law
Connecticut decided to pass the law after Connecticut teachers regretted investing in certain products without being informed of fees and other charges. Read more >
Prospect Chartercare Faces Lawsuit Over DB Plan Funding
The complaint alleges that at a certain point, the plan lost its church plan status as defined by the Employee Retirement Income Security Act (ERISA) and was required to adhere to ERISA funding rules. Read more >
Investing
Plan Sponsors and Participants Must Confront Sequence Risk
Target-date funds and defined contribution plans hold more assets now than ever before—putting pressure on plan sponsors to understand all the types of risk that can derail participants’ savings. Read more >
Small Talk

ON THIS DATE: In 1788, Virginia ratified the U.S. Constitution and became the 10th state of the United States. In 1864, Union troops surrounding Petersburg, Virginia, began building a mine tunnel underneath the Confederate lines. In 1867, Lucien B. Smith patented the first barbed wire. In 1868, Congress enacted legislation granting an eight-hour day to workers employed by the Federal government. In 1868, Florida, Alabama, Louisiana, Georgia, North Carolina and South Carolina were readmitted to the Union. In 1876, Lt. Col. Custer and the 210 men of U.S. 7th Cavalry were killed by Sioux and Cheyenne Indians at Little Big Horn in Montana. The event is known as “Custer’s Last Stand.” In 1950, North Korea invaded South Korea initiating the Korean War. In 1951, in New York, the first regular commercial color TV transmissions were presented on CBS using the FCC-approved CBS Color System. The public did not own color TV’s at the time. In 1973, White House Counsel John Dean admitted that U.S. President Richard Nixon took part in the Watergate cover-up. In 1981, the U.S. Supreme Court decided that male-only draft registration was constitutional. In 1990, the U.S. Supreme Court upheld the right of an individual, whose wishes are clearly made, to refuse life-sustaining medical treatment. “The right to die” decision was made in the Curzan v. Missouri case. In 1993, Kim Campbell took office as Canada’s first woman prime minister. In 1998, the U.S. Supreme Court rejected the line-item veto thereby striking down presidential power to cancel specific items in tax and spending legislation. In 2000, U.S. and British researchers announced that they had completed a rough draft of a map of the genetic makeup of human beings. The project was 10 years old at the time of the announcement.

SURVEY SAYS RESPONSES: Last week, I asked NewsDash readers, “Would you rather work five 8-hour days or four 10-hour days?” The vast majority of responding readers (88.1%) indicated they would rather work four 10-hour days, while 11.9% would rather work five 8-hour days. In verbatim comments, some readers expressed thoughts that an 8-hour work day is virtually non-existent in the retirement plan business. Among those selecting four 10-hour days, some said it would be an improvement because they work up to 10 hours during their five-day work week. Others offered a caveat that the third day off would have to be on Friday or Monday so they would have a 3-day weekend. Several readers explained that they work what is called a “9/80” work schedule—something I haven’t heard about until reading the responses. Editor’s Choice goes to the reader who said: “I’d rather work four 6-hour days. Six seems about the right amount given my energy and engagement level for work.” Thank you to all who participated in the survey! Read more >
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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

Advertising: Paul Zampitella paul.zampitella@strategic-i.com

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