Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
June 27th, 2018
Benefits & Administration
Recordkeeper Market Caters to All Plan Sizes, but Differently
The 2018 PLANSPONSOR Recordkeeping Survey has found smaller plans tend to align with adviser-centric recordkeepers or those supplying core business services—e.g., payroll—while larger plans migrate toward providers offering proprietary, and customizable, platforms. Read more >
Gen Xers Show Stunted Retirement Preparedness
More than one-third of Gen Xers say they have no money at all saved for retirement, and 29% expect Social Security to be their primary source of retirement income. Read more >
Products, Deals and People
ABG of Michigan Introduces Financial Wellness Program
ABG of Michigan (ABGMI) introduced “fly!,” a holistic consulting and action program that helps employees achieve personal financial success. ABGMI works with each company and its financial adviser to design a custom program based on the company’s goals, objectives, and employee demographics. Read more >
Economic Events
The Conference Board Consumer Confidence Index decreased in June, following an increase in May. The Index now stands at 126.4 (1985=100), down from 128.8 in May. The Present Situation Index was relatively flat, 161.1 versus 161.2 last month, while the Expectations Index declined from 107.2 last month to 103.2 this month.
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An Accurate Perception of Their Finances Eludes Many Americans
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Innovative Health Cost Saving Strategies Paying Off for Employers
Market Mirror

Tuesday, the Dow was up 30.31 points (0.12%) at 24,238.11, the NASDAQ closed 29.62 points (0.39%) higher at 7,561.63, and the S&P 500 increased 5.99 points (0.22%) to 2,723.06. The Russell 2000 gained 11.02 points (0.66%) to finish at 1,668.53, and the Wilshire 5000 closed 87.79 points (0.31%) higher at 28,494.21.

The price of the 10-year Treasury note was up 1/32, decreasing its yield to 2.880%. The price of the 30-year Treasury bond was down 2/32, increasing its yield to 3.027%.

Compliance
Groom Law Group to IRS: More Plan Types Need Determination Letters
Under the restricted determination letter program created by Internal Revenue Service (IRS) Revenue Procedure 2016-37, a plan can now request a determination letter only in very limited circumstances; attorneys with Groom Law Group are calling for a new expansion of the program. Read more >
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 >
Ask the Experts
How to Match When Deferrals Are Front-Loaded
“I work for a 403(b) plan sponsor, and have recently encountered a situation when a few individuals have front-loaded their elective deferrals to the 403(b) plan, so that have recently met the 402(g) limit, even though were are less than halfway through the year. Our payroll system appropriately cut off these participants at the 402(g) limit, so there are no excess deferrals to address. However, because we have a matching contribution that matches elective deferrals each pay period, their match ceased when the elective deferrals ceased, resulting in these employees not receiving their full matching contribution for the year. How do we address this issue, if at all?” Read more >
Small Talk
When it comes to tipping, many Millennials (ages 18 to 37) are skimping out, according to a new CreditCards.com survey. Ten percent of Millennials say they usually leave nothing as a tip for a server when dining out at a restaurant, compared to just 3% of those who are older. Furthermore, 18% typically decline to leave any amount when presented with pre-entered tipping options in a taxi/Uber/Lyft, at a food truck, at a coffee shop, etc., versus 12% of older adults. Among those who leave tips for various services, they usually leave a smaller amount than those who are older. Read more >

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 the 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 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 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 1980, 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. He had been appointed in 1967 by President Lyndon Johnson. 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.


WEDNESDAY WISDOM:
“The secret of happiness is something to do.”—John Burroughs, an American naturalist and nature essayist

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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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