Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
June 26th, 2018

The 2018 PLANSPONSOR National Conference covered current trends and best practices for defined benefit (DB) and defined contribution (DC) retirement plans, while discussing what lies ahead in retirement plan design, participant engagement and education, and investment options and solutions, as well as, of course, legislative and regulatory updates. Here is our team coverage of conference discussions. Read more >
Benefits & Administration
Small Plans, Big Results
At the 2018 PLANSPONSOR National Conference, the 2018 PLANSPONSOR of the Year in the $10MM – $50MM category and two industry leaders offered pointers on how small retirement plans with a low budget and few staff can offer a best in class plan design. Read more >
Tax Reform, Other Factors Leading DB Plans to Increase Funding
Nearly two-thirds (62%) of respondents to a survey say they are “very likely” to transfer some or all of their pension obligations to an insurance company once their DB plan becomes well-funded. Read more >
ARA Study Finds Electronic Delivery of DC Plan Disclosures Can Save Money
Current regulations requiring paper delivery of participant DC plan information can cost investors between $350 to $500 million per year, which can reduce the average account balance by 2.4% over a 40-year work life, the study found. Read more >
Retirees Say Income Replacement Needed Not As High As Pre-Retirees Think
Retirees are considerably less concerned than pre-retirees about their money lasting throughout retirement, according to a survey by Massachusetts Mutual Life Insurance Co. Ninety-one percent of retirees are confident their savings will last throughout their lifetime, compared to only 56% of pre-retirees. Half of retirees say they spend less in retirement than they did in their working years. Read more >
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Missing Inaction
Products, Deals and People
Retirement Plans Must Be Paired With Educational Programs
Merely offering a retirement plan is not enough if plan sponsors want their participants to fully embrace it, according to a report from Arnerich Massena, Inc., “Retirement Plan Best Practices: Participant Education.” Arnerich Massena says, education is critical to helping participants become aware of their plan and its critical value to them. “Combined with effective plan design and maintenance, education can play a significant role in improving participant outcomes,” the company says. The report is one of a five-part series that Arnerich Massena issued on retirement best practices. Read more >
Economic Events

Sales of new single-family houses in May were at a seasonally adjusted annual rate of 689,000, according to estimates released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 6.7% above the revised April rate of 646,000 and is 14.1% above the May 2017 estimate of 604,000.

Sponsored message from PIMCO
Defined Contribution: Four Themes for 2018 and Beyond
. TDFs – blend active and passive
. Retirement income – don’t chase perfection
. Equities – consider lower-fee systematic strategies
. Fixed income – as allocations peak, go active Read more >
Market Mirror

Yesterday, the Dow lost 328.09 points (1.33%) to finish at 24,252.80, the NASDAQ closed 160.81 points (2.09%) lower at 7,532.01, and the S&P 500 decreased 37.81 points (1.37%) to 2,717.07. The Russell 2000 was down 28.07 points (1.67%) at 1,657.51, and the Wilshire 5000 fell 421.25 points (1.46%) to 28,406.42.

 

The price of the 10-year Treasury note was up 6/32, decreasing its yield to 2.875%. The price of the 30-year Treasury bond increased 7/32, bringing its yield down to 3.027%.

Compliance
MetLife Accused of Failing to Pay Retirees Covered by Pension Risk Transfers
The company is facing lawsuits by a retirement plan participant whose assets were transferred to MetLife as well as by Massachusetts Secretary of the Commonwealth William Galvin. Read more >
Investing
Cerulli Analysts Tackle Tough Topic of ESG ‘Materiality’
While not a new concept, materiality is essential to efficiently integrating environmental, social and governance (ESG) factors into the investment process; it all boils down to being able to determine which ESG factors are likely to be linked to stronger investment performance by identifying risks that are related to certain industries. Read more >
Small Talk

ON THIS DATE: In 1819, the bicycle was patented by W.K. Clarkson, Jr. In 1900, the United States announced that 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, in San Francisco, the U.N. Charter was signed by 50 nations. In 1948, the Berlin Airlift began as the U.S., Britain and France started ferrying supplies to the isolated western sector of Berlin. In 1959, President Dwight Eisenhower joined Britain’s Queen Elizabeth II in ceremonies officially opening the St. Lawrence Seaway. 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. In 1979, Muhammad Ali, at 37 years old, announced that 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 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.

TRIVIAL PURSUITS: From where did Lincoln Logs get its name? 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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