Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
June 26th, 2017
Benefits & Administration
Accenture announced it has completed the termination of its U.S. pension plan by entering into agreements with American General Life Insurance Company (AGL), a subsidiary of American International Group, Inc., and Massachusetts Mutual Life Insurance Company. Under the agreements, the plan has transferred pension assets to AGL and MassMutual to settle approximately $1 billion of outstanding pension obligations. Read more >
A J.P. Morgan analysis points out one relatively unknown strategy that may help investors respond to big changes in the tax treatment of their savings: Proactive traditional-to-Roth conversions during lower income retirement years. Read more >
Investors Skeptical of 401(k) Performance Data
Forty-one percent of 401(k) investors say they are not provided or do not know if they are provided with investment performance information from their adviser or 401(k) provider, Phoenix Marketing International found in a survey. Additionally, 35% are not confident that the information is reliable. Read more >
MOST READ ARTICLES
1
J.P. Morgan Agrees to Settle Stable Value Funds Suit
2
Individuals, Employers and Government All Play a Part in Retirement Readiness
3
Participant Loans: A Fiduciary Storm Brewing?
4
What to Know About Financial Audits Filed with Form 5500s
5
2019 PLANSPONSOR National Conference
Many Employees Lack Understanding of the Total Cost of Health Care
The full cost of health care includes employer contributions, employee contributions, and the cost of health care services, but do employees understand that? According to Jellyvision’s 2017 ALEX Benefits Communication Survey, conducted by Harris Poll, only 59% of employees with health insurance correctly identify all three options as going into the cost of care. Read more >
Written Financial Plans Drive More Positive Savings Behaviors
People with written financial plans are more confident, more engaged with their wealth and demonstrate more positive saving and investing behaviors than average Americans, according to Charles Schwab’s new Modern Wealth Index. The index found 54% of those with a written plan increased their 401(k) contributions in the past year, compared to 33% of those without a written financial plan. Half with a written plan rebalanced their 401(k) portfolio, compared to 24% without a written plan. Read more >
Sponsored message from Natixis
Retirement planning for a better world
62% of plan participants and 71% of Millennials surveyed would contribute more to their 401(k) plan if it advanced social good. Now they can. Introducing the Natixis Sustainable Future Funds – the industry’s first ESG-driven target-date funds. Join the movement. 1815044.1.1 Read more >
Products, Deals and People
Retirement Industry People Moves
Voya Financial hired leader of Retirement Product Organization; Lincoln Financial names head of Product Management; HSA Bank announces new leadership appointments; and more. Read more >
Economic Events

Sales of new single-family houses in May were at a seasonally adjusted annual rate of 610,000, the Census Bureau reported. This is 2.9% above the revised April estimate of 593,000.

THE ECONOMIC WEEK AHEAD: Today, the Census Bureau will report about durable goods orders for May, and tomorrow, the Conference Board will release its Consumer Confidence Index for June. Thursday, the Labor Department will issue its initial claims report.

Market Mirror

Friday, the Dow was down 2.53 points (0.01%) at 21,394.76, the NASDAQ closed 28.56 points (0.46%) higher at 6,265.25, and the S&P 500 was up 3.80 points (0.16%) at 2,438.30. The Russell 2000 gained 10.24 points (0.73%) to finish at 1,414.77, and the Wilshire 5000 increased 68.64 points (0.27%) to 25,349.12.

The prices of the 10-year Treasury note and 30-year Treasury bond were each up 1/32, decreasing their yields to 2.146% and 2.716%, respectively.

WEEK’S WORTH: For the week ending June 23, the Dow was up 0.05%, the NASDAQ climbed 1.84%, and the S&P 500 increased 0.21%. The Russell 2000 gained 0.57%, and the Wilshire 5000 finished 0.33% higher.

From the Magazine
ERISA Examination: Investment Committee Performance Review
Life as a member of your company’s retirement plan committee, and a fiduciary under the Employee Retirement Income Security Act (ERISA), is certainly becoming more challenging. This column addresses how plan committee members should act, and suggests standards by which to review their performance. Read more >
Small Talk

ON THIS DATE: In 1804, the Lewis and Clark Expedition reached the mouth of the Kansas River after completing a westward trek of nearly 400 river miles. In 1819, the bicycle was patented by W.K. Clarkson, Jr. In 1844, U.S. President John Tyler took Julia Gardiner as his bride, thus becoming the first U.S. President to marry while in office. In 1900, the United States announced it would send troops to fight against the Boxer rebellion in China. In 1900, a commission that included Dr. Walter Reed began the fight against the deadly disease yellow fever. In 1927, the Coney Island Cyclone roller coaster opened in New York. In 1945, the U.N. Charter was signed by 50 nations in San Francisco, California. In 1948, the Berlin Airlift began as the U.S., Britain and France started ferrying supplies to the isolated western sector of Berlin. In 1974, in Troy, Ohio, a Marsh supermarket installed the first bar code scanning equipment, made by IBM, and a product with a bar code was scanned for the first time. The product was Juicy Fruit gum. In 1979, Muhammad Ali, at 37 years old, announced he was retiring as world heavyweight boxing champion. In 1996, the U.S. Supreme Court ordered the Virginia Military Institute to admit women or forgo state support. In 1997, the U.S. Supreme Court struck down the Communications Decency Act of 1996 that made it illegal to distribute indecent material on the Internet. In 2000, the Human Genome Project and Celera Genomics Corp. jointly announced that they had created a working draft of the human genome. In 2002, WorldCom Inc. filed for Chapter 11 bankruptcy protection.

SURVEY SAYS RESPONSES: Last week, I asked NewsDash readers, “How likely would you be to pick a 2.5% guaranteed rate of return over the returns you would potentially receive in your plan over the years?” Nearly half (48.4%) of respondents said they are not at all likely. One-quarter (25.8%) said they are somewhat unlikely, and 12.9% indicated they are somewhat likely. “Very likely” was chosen by 9.7% of responding readers. In verbatim comments, several respondents don’t give much weight to the investment manager estimates, and several say there is still a way to get much more than 2.5% by managing a portfolio correctly. Still there were some who like the idea of a guarantee, at least for part of their assets. Editor’s Choice goes to the reader who said: “I have wide ties, narrow ties, wild ties, dull ties and ties for any occasion. Several fashion managers are reporting an expectation, going forward, that one of them will be in style. In other news, scientists predict there will be four seasons within the foreseeable future. Sheesh!” A big 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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