| Products, Deals & People | OneAmerica to Acquire BMO’s U.S. Retirement Business | OneAmerica and BMO Financial Group have reached
an agreement for OneAmerica to acquire BMO’s Milwaukee-based, U.S. retirement
services business, BMO Retirement Services, a division of BMO Global Asset
Management. OneAmerica, based in Indianapolis, will have about $56 billion in
defined contribution (DC) assets, making 401(k) plans the firm’s largest market,
says Bill Yoerger, president of the retirement services division for
OneAmerica. “We continue to invest and grow 403(b) plans,” Yoerger tells
PLANSPONSOR, “with about 40% of sales in nonprofits.”Read more > | John Hancock Offers LPL’s Advice Tool | John Hancock Retirement Plan Services has
integrated LPL Financial’s Employee Advice Solution into its recordkeeping
platform. The Web-based advice tool asks employees about their financial
holdings. Based on that information, participants can receive personalized
retirement advice or manage their accounts on their own.Read more > | White Paper Urges Revisit of Plan Design | It is no longer enough to simply offer a
retirement plan and hope that employees participate, according to a new white
paper from retirement plan consultancy Axia Advisory. According to the report,
“Redefining the Retirement Plan,” plan sponsors must completely
rethink their retirement plan to make certain that participants are saving,
saving enough and saving properly. “Most plan sponsors are familiar with the
three Fs: fiduciary, fees and funds,” the report says. “Organizations, though,
can end up with a fourth F if they’re not careful: failure of their employees
to be ready to retire.”Read more > | | GAO Requests | Survey of 401(k) Plans’ Use of Eligibility and Vesting
Requirements: Building savings in a 401(k) plan is a key step
to achieving income security in retirement for millions of Americans. That
savings may be affected by the eligibility and vesting requirements that are
used by many plans. The Government Accountability Office (GAO) is asking plan
sponsors to participate in its survey examining why plan sponsors use certain
eligibility and vesting requirements, how they may have changed the
requirements, and how they communicate the rules to employees and participants.Read more > |
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Survey of Lifetime Income Options 401(k) Plan Sponsors
Offer Participants: An increasing American lifespan in an era when
the predominant workplace retirement plan no longer guarantees lifetime income
calls into question how well 401(k) plans work for the oldest Americans. The
GAO is asking plan sponsors to participant in a survey that examines the
mechanisms in 401(k) plans that can provide some financial stability to
participants until the end of their lives. It asks about the advantages and
disadvantages of these options, education about them, and barriers that might
limit their adoption.Read more > | | Economic Events | THE ECONOMIC WEEK AHEAD: Tomorrow, the
Conference Board will release its Consumer Confidence Index for June. Wednesday, the Census Bureau will
report about construction spending for May. Thursday, the Labor Department will release its initial claims
report, the Bureau of Labor Statistics will reveal the unemployment rate for
June and the Census Bureau will report about factory orders for May. | | Market Mirror | Friday, the
Dow closed 56.66 points (0.32%) higher at 17,947.02, the NASDAQ closed 31.68
points (0.62%) lower at 5,080.51, and the S&P 500 was virtually unchanged
at 2,101.88. The Russell 2000 was down 3.39 points (0.26%) at 1,279.89, and the
Wilshire 5000 slipped 12.76 points (0.06%) to 22,245.42.
On the NYSE,
3.2 billion shares traded, with 1.3 declining issues for every advancing issue.
On the NASDAQ, 2.9 billion shares changed hands, with a 1.5 to 1 ratio of
decliners to advancers.
The price of
the 10-year Treasury note decreased 17/32, bringing its yield up to 2.474%. The
price of the 30-year Treasury bond fell 1 5/32, increasing its yield to 3.240%.
WEEK’S
WORTH: For the week ending June 26, the Dow decreased
0.38%, the NASDAQ fell 0.71%, and the S&P 500 finished 0.38% lower. The
Russell 2000 was down 0.37%, and the Wilshire 5000 lost 0.46%.
| | Compliance | High Court Marriage Decision Will Affect Health Benefits | The U.S. Supreme Court has ruled that under the
Fourteenth Amendment, states cannot deny same-gender couples the right to
marry, and it is illegal for states to not recognize same-gender marriages
performed in another state. “I think today’s decision will have little impact
on retirement plan administration,” Kerry Eason, a director in consulting firm
PwC’s Chicago office, tells PLANSPONSOR. However, for employer-sponsored health plans, it is a
little different.Read more > | | From the Magazine | Money Market Reform Will Likely Alter Plan Investment | Money market fund reform which take effect in
October 2016, will oblige retirement plan sponsors to review the relevant funds
in their lineups and possibly replace them, experts say. The new rules—mainly
amendments to existing Securities and Exchange Commission (SEC) governance of
money market mutual funds—will affect nearly two-thirds of plans, as 63.5%
offer at least one such fund in their investment portfolio, according to the
2014 PLANSPONSOR Defined Contribution (DC) Survey.Read more > | | AI’s Research Library | Published every June, the PLANSPONSOR
Recordkeeping Survey is now available in print for $95. The survey consists of
16 pages of comparative client profiles, market share and product data for 66
providers of defined contribution recordkeeping services.Read more > | | Small Talk | ON THIS DATE: In
1888, Professor Frederick Treves
performed the first appendectomy in England. In 1967, blonde bombshell actress Jayne Mansfield was killed when the
car in which she was riding struck the rear of a trailer truck on Interstate-90
east of New Orleans, Louisiana. In 1972,
in Furman v. Georgia, the U.S.
Supreme Court ruled by a vote of 5-4 that capital punishment, as it was then
employed on the state and federal level, was unconstitutional. In 2003, Katharine Hepburn—a four-time Academy Award winner for Best Actress and
one of the greatest screen legends of Hollywood’s golden era—died of natural causes at the age of 96, at her home
in Old Saybrook, Connecticut. | Last week, I asked NewsDash readers which woman
they think should be chosen for the new $10 bill. The clear winner was Eleanor
Roosevelt, selected by 28.1% of responding readers. The Statue of Liberty took
second place, with 14% of respondent votes. Nineteen percent of responding
readers submitted their own suggestions for which woman should be on the $10
bill—some serious (Jeannette Rankin), and some, I’m hoping, intended to be
funny (Phyllis Diller). In verbatim comments, a large number of readers felt
Andrew Jackson should be replaced on the $20, but Alexander Hamilton should not
be replaced. Some didn’t like the idea of putting a woman on a bill at all,
though there were more who said things like “It’s about time!” Editor’s Choice goes to the reader who
said: “Really does it matter? Women, men, just so it is someone who had a
positive connection and leadership in United States.” Thanks to everyone who
participated in the survey!Read more > | Share the good news with a friend! Pass the Dash along – and tell your
friends/associates they can sign up for their own copy.Read more > | News from PLANSPONSOR.com
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