Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
June 27th, 2017
PLANSPONSOR Research
2017 Recordkeeping Survey
The PLANSPONSOR 2017 Recordkeeping Survey is now online. Read more >
Benefits & Administration
For 38% of defined benefit plan participants at The Hartford, benefit obligations will be transferred over to Prudential Financial, per a recent agreement between the two companies. The Hartford will be purchasing a group annuity contract to transfer $1.6 billion—or 29% of the company’s $5.6 billion in U.S. qualified pension plan liabilities. Read more >
More Retirement Plans Using Roth Accounts
More than half (61%) of plan sponsors now offer Roth contributions in their 401(k) plans, according to a report from T. Rowe Price Retirement Plan Services. The same report also indicated that adoption of automatic plan features has been on the rise since the Pension Protection Act of 2006. Read more >
MOST READ ARTICLES
1
House Committee Advances Bill to Establish Union Pension Lifeline Program
2
The Senate Math That Could Block SECURE Act
3
Open MEPs Not for Every Plan Sponsor
4
Adidas Sued Over Excessive Fees for 401(k) Participants
5
Employers Encouraged to Offer Multi-Dimensional Wellness Programs
Employers See CDHPs As Critical to Health Care Benefit Success
With 60 million CDHP accounts in the market as of 2016 and an 11% estimated compound annual growth rate (CAGR) from 2014 to 2020, 74% of employers rate CDHPs to be a critical component of their future benefits strategies and an essential tool to combat the rising cost of health benefits, according to a report released by CDH solution provider, Alegeus. Rising health care costs are still the biggest factor driving CDHP adoption. Read more >
Smaller Companies Cite Reasons for Not Offering Retirement Plans
Only 53% of small- to mid-sized businesses, those with five to 250 employees, offer a retirement plan, The Pew Charitable Trusts found in a survey. Ninety-three percent believe their employees would prefer a higher salary or other benefits. Employers are much more likely to offer paid time off (86%) and health care plans (61%) than a retirement plan. Employers offer reasons for not offering a retirement plan to employees, and smaller companies that do offer one cite reasons for not using automatic plan features. Read more >
Sponsored message from First State Investments
Green infrastructure: the next-gen energy grid
Politics aside, the economic reality is that the world is moving away from carbon- based energy. Coal has lost its competitive edge, outpaced by natural gas, wind and solar. What does this mean for investors? Read more >
Economic Events

New orders for manufactured durable goods in May decreased $2.5 billion or 1.1% to $228.2 billion, the U.S. Census Bureau announced. This decrease, down two consecutive months, followed a 0.9% April decrease. Excluding transportation, new orders increased 0.1%. Excluding defense, new orders decreased 0.6%. Transportation equipment, also down two consecutive months, drove the decrease, $2.7 billion or 3.4% to $75.4 billion.

Market Mirror

Yesterday, the Dow closed 14.79 points higher (0.07%) to finish at 21,409.55, the NASDAQ closed 18.10 points (0.29%) lower at 6,247.15, and the S&P 500 was virtually unchanged at 2,439.07. The Russell 2000 increased 1.85 (0.13) to 1,416.63, and the Wilshire 5000 was up 18.50 points (0.07%) at 25,367.62.

The price of the 10-year Treasury note was up 2/32, decreasing its yield to 2.138%. The price of the 30-year Treasury bond increased 13/32, bringing its yield down to 2.696%.

From the Magazine
Fee Litigation Revisited
Hardly a day goes by when we don’t see a new class action lawsuit brought against plan sponsors and their advisers—plan fiduciaries—regarding the management and administration of retirement plans. Making things worse, plaintiffs’ theories used to claim that plan fiduciaries violated duties to the plan have become wide-ranging and complex. This article describes some of the notable allegations taken from the seminal cases in the retirement space and the key points that plan fiduciaries should take from those cases. Read more >
Small Talk

ON THIS DATE: In 1847, New York and Boston were linked by telegraph wires. In 1893, the New York stock market crashed. By the end of the year 600 banks and 74 railroads had gone out of business. In 1924, Democrats offered Mrs. Leroy Springs for vice presidential nomination. She was the first woman considered for the job. In 1927, the U.S. Marines adopted the English bulldog as their mascot. In 1929, scientists at Bell Laboratories in New York revealed a system for transmitting television pictures. In 1942, the FBI announced the capture of eight Nazi saboteurs who had been put ashore from a submarine on New York’s Long Island. In 1944, during World War II, American forces completed their capture of the French port of Cherbourg from the German army. In 1950, two days after North Korea invaded South Korea, U.S. President Harry Truman ordered the Air Force and Navy into the Korean conflict. The United Nations Security Council had asked for member nations to help South Korea repel an invasion from the North. In 1955, the state of Illinois enacted the first automobile seat belt legislation. In 1959, the play, “West Side Story,” with music by Leonard Bernstein, closed after 734 performances on Broadway. In 1967, the world’s first cash dispenser was installed at Barclays Bank in Enfield, England. The device was invented by John Sheppard-Barron. The machine operated on a voucher system and the maximum withdrawal was $28. In 1980, U.S. President Jimmy Carter signed legislation reviving draft registration. In 1985, Route 66 was officially removed from the United States Highway System. In 1991, Associate Justice Thurgood Marshall resigned from the U.S. Supreme Court. In 2002, the Securities and Exchange Commission required companies with annual sales of more than $1.2 billion to submit sworn statements backing up the accuracy of their financial reports. In 2005, in Alaska’s Denali National Park, a roughly 70-million year old dinosaur track was discovered. The track was form a three-toed Cretaceous period dinosaur.

TRIVIAL PURSUITS: In which U.S. state can the oldest seat of government be found? 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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