Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
June 6th, 2018
Benefits & Administration
CRR Offers Retirement Policy Suggestions to the DOL
The current defined contribution retirement (DC) plan system could be improved along three dimensions, according to researchers from the Center for Retirement Research (CRR) at Boston College. In a report prepared for the Department of Labor (DOL), “An Analysis of Retirement Models to Improve Portability and Coverage,” Dr. Alicia H. Munnell, Anek Belbase, and Dr. Geoffrey T. Sanzenbacher recommend strategies to enhance portability, reduce plan leakage and protect transfers from employer DC accounts to individual retirement accounts. Read more >
Vanguard: Mistakes Remain, But Participants Are Better Users of TDFs
Vanguard reports that more than half of 401(k) participants are now invested in a single target-date fund (TDF), compared with only 13% just a decade ago. Vanguard’s “How America Saves 2018” suggests target-date funds continue to reshape the investment patterns of retirement savers, driving increased diversification and deterring errant, emotional trading. According to the report, the dramatic rise of TDFs—and subsequent portfolio construction benefit—has been driven by the adoption of automatic enrollment, which has tripled in the last decade to nearly half of plans. Read more >
CDHP, HDHP Participant Consumerism Doesn’t Improve Over Time
Consumer-directed health plan (CDHP) participants’ engagement does not increase as participants gain more familiarity with plan designs over time, according to an Employee Benefit Research Institute (EBRI) Issue Brief. Cost-conscious decision-making also did not increase with time for participants in either traditional or high-deductible health plans (HDHPs). EBRI found, however, it does appear that owners of health savings accounts (HSAs) are slightly more engaged the longer they have owned an HSA. Read more >
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Over Half of Americans Have Nothing Saved in a Retirement Account
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Innovative Health Cost Saving Strategies Paying Off for Employers
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2018 HSA Conference
Market Mirror

Tuesday, the Dow decreased 13.71 points (0.06%) to 24,799.98, the NASDAQ closed 31.40 points (0.41%) higher at 7,637.86, and the S&P 500 was up 1.93 points (0.07%) at 2,748.80. The Russell 2000 gained 11.25 points (0.68%) to finish at 1,664.63, and the Wilshire 5000 increased 46.46 points (0.16%) to 28,700.72.

The price of the 10-year Treasury note increased 7/32, bringing its yield down to 2.919%. The price of the 30-year Treasury bond was up 4/32, decreasing its yield to 3.080%.

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Ask the Experts
Are 415(m) Plans Subject to the Premature Distribution Penalty?
“Are 415(m) plans subject to the 10% premature distribution penalty for early distributions from a retirement plan?” Read more >
From the Magazine
Rising Costs
Pension Benefit Guaranty Corporation (PBGC) premiums are high, but there are ways to control them. Read more >
Small Talk
As summer vacation season approaches, a new survey from Discover found that for the 58% of those who intend to take a summer trip, where they go, how they pay and what they do while on vacation may be a factor of their age. The national survey of 1,100 U.S. adults ages 18 and older found that travel preferences vary from generation to generation. For example, members of Generation Z, ages 18 to 21, are looking for an adrenaline rush on their next vacation, with 30% saying adventure is their top travel priority, compared to 8% of Millennials, ages 22 to 37; 10% of Generation X, ages 38 to 53; 7% of Baby Boomers, ages 54 to 72; and 9% of the Silent Generation, ages 73 and older. Read more >

ON THIS DATE: In 1844, the Young Men’s Christian Association (YMCA) was founded in London. In 1882, the first electric iron was patented by H.W. Seely. In 1925, Chrysler Corporation was founded by Walter Percy Chrysler. In 1932, in the U.S., the first federal tax on gasoline went into effect. It was a penny per gallon. In 1933, in Camden, New Jersey, the first drive-in movie theater opened. In 1934, U.S. President Franklin Roosevelt signed the Securities Exchange Act, which established the Securities and Exchange Commission (SEC). In 1942, Japanese forces retreated in the World War II Battle of Midway. The battle had begun on June 4. In 1944, the D-Day invasion of Europe took place on the beaches of Normandy, France. 400,000 Allied American, British and Canadian troops were involved. In 1946, the Basketball Association of America was formed in New York City. In 1968, U.S. Senator Robert F. Kennedy died at 1:44am in Los Angeles after being shot by Sirhan Sirhan. Kennedy was shot the evening before while campaigning for the Democratic presidential nomination. In 1971, “The Ed Sullivan Show” aired for the last time. It was canceled after 23 years on the air. Gladys Knight and the Pips were the musical guests on show. In 1978, “20/20” debuted on ABC.


WEDNESDAY WISDOM:
“If you can’t describe what you are doing as a process, you don’t know what you’re doing.”—W. Edwards Deming, American engineer

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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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