Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
June 9th, 2015
Benefits & Administration
PSNC 2015: Solving the Retirement Crisis
The world as we know it ends in 2030. According to Brock Johnson, president of retirement solutions for Morningstar Inc., this is when the Baby Boomers will be aging, Generation X will be starting to retire, and Social Security will be depleted. What’s more, he said, the U.S. doesn’t seem to be able to revamp its retirement system in a meaningful way to cut off these challenges.Read more >
Speaking at the 2015 PLANSPONSOR National conference, Judy Leccese, retirement plans manager at Cabot Corporation, outlined the process of searching for a retirement specialist adviser. Before sending out any requests for proposals (RFPs), Leccese said, check in with the plan committee first. Establishing a checklist of desired traits can guide the questions contenders will be called on to answer. Does the plan need a 3(21) or 3(38) fiduciary adviser? Will the adviser be called on to help with a defined benefit (DB) and/or defined contribution (DC) plan? These are all important to determine before launching the adviser search.Read more >
SPARK Calls Electronic Disclosure Rules Overly Restrictive
Employers that offer defined contribution (DC) retirement plans are required to distribute a host of statements and disclosures quarterly as well as annually, a process many plans would prefer to do electronically. But current rules stand in the way, according to “Improving Outcomes with Electronic Delivery of Retirement Plan Documents,” a new SPARK report.Read more >
According to Jason Chepenik, managing partner, Chepenik Financial, a plan transition follows from the decision to “blow things up and start all over again.” To explain what that means for participants, he suggests hosting mandatory meetings, but only after the plan goes live. The “blackout” period is the most stressful time for participants, he said. It usually lasts less than two weeks, he noted, but plan sponsors are required to give a 30-day notice. Plan sponsors should wait until after participants have had a chance to see the changes and interact with the plan before hosting a Q-and-A.Read more >
TRIVIAL PURSUITS: How Many Phils Have There Been?
TRIVIAL PURSUITS: What do the M’s stand for in M&Ms?
2022 Recordkeeping Survey
TRIVIAL PURSUITS: Meaning and Origin of the Idiom “Watershed Moment?”
Maximum Benefit and Contribution Limits Table 2023
PSNC 2015: What Participants Really Want
In a presentation closing the 10th annual PLANSPONSOR National Conference in Chicago, Alison Cooke Mintzer, editor-in-chief of PLANSPONSOR, outlined key findings from this year’s PLANSPONSOR Participant Survey.  The survey finds 76% of people who report being confident or very confident about retirement have $50,000 or more saved across all retirement accounts. This confidence is a good thing for the 22% in this group who have more than $500,000 saved—but overall the figure denotes dangerous overconfidence, as a single year’s health expenses in retirement average around $43,000 per year. As Cooke Mintzer observed, “many of those people who report feeling confident are feeling confident at lower savings levels than we would like.”Read more >
Products, Deals & People
The SPARK Institute Inc. appointed a new executive director, Timothy (Tim) Rouse. In his new role, Rouse will represent the SPARK Institute’s mission on behalf of its members to a wide range of industry professionals, and key constituencies such as regulators, legislators and media. He will also assume day-to-day responsibilities for managing the organization.Read more >
Market Mirror

Yesterday, the Dow was down 82.91 points (0.46%) at 17,766.55, the NASDAQ fell 46.83 points (0.92%) to 5,021.63, and the S&P 500 closed 13.52 points (0.65%) lower at 2,079.31. The Russell 2000 decreased 7.30 points (0.58%) to 1,253.70, and the Wilshire 5000 lost 149.58 points (0.67%) to finish at 22,018.08.

On the NYSE, 3.2 billion shares traded, with a more than 2 to 1 lead for decliners. On the NASDAQ, 2.8 billion shares changed hands, with 1.8 declining issues for every advancing issue.

The price of the 10-year Treasury note increased 9/32, bringing its yield down to 2.379%. The price of the 30-year Treasury bond was up 6/32, decreasing its yield to 3.109%.

Bill Seeks More Digital Plan Communication
Representatives Jared Polis (D-Colorado), Phil Roe (R-Tennessee), Ron Kind (D-Wisconsin) and Mike Kelly (R-Pennsylvania) introduced bipartisan legislation last week they say would modernize the way employers communicate important retirement information by allowing plan sponsors to automatically opt participants into electronic delivery of documents. According to the lawmakers, the Receiving Electronic Statements to Improve Retiree Earnings (RETIRE) Act would “catch up with Americans’ overwhelming shift towards digital communication while providing strong protections for those who prefer to receive paper documents.”Read more >
U.S. District Judge Paul A. Crotty of the U.S. District Court for the Southern District of New York has preliminarily approved a settlement between the Federal National Mortgage Association (FNMA) and a group of retirement plan participants who claim the firm held onto company stock when it was imprudent to do so. Affected participants will receive $9 million less attorneys’ fees and settlement expenses.Read more >
Affiliated Funds Bias Affects Participants’ Accounts
A Pension Research Council working paper suggests there is significant favoritism toward affiliated funds displayed by mutual fund companies that act as service providers to 401(k) plans. According to the report, researchers found affiliated funds are more likely to be added and less likely to be removed from 401(k) plan fund menus. The biggest relative difference between how affiliated and unaffiliated funds are treated on the menu occurs for the worst performing funds, which have been shown to exhibit significant performance persistence.Read more >
Small Talk

ON THIS DATE: In 1934, Donald Duck made his debut in the Silly Symphonies cartoon “The Wise Little Hen.” In 1943, the withholding tax on payrolls was authorized by the U.S. Congress. In 1973, Secretariat became the first horse since Citation in 1948 to win America’s coveted Triple Crown—the Kentucky Derby, the Preakness, and the Belmont Stakes. In 2011, the world’s first artificial organ transplant was performed. It was an artificial windpipe coated with stem cells.


TUESDAY TRIVIA: Donald Duck has a star on the Hollywood Boulevard Walk of Fame.

TRIVIAL PURSUITS: Why do doctors wear white coats?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


Copyright © Asset International, Inc., 2015.

All rights reserved.  No reproduction without prior authorization.

Editorial: Alison Cooke Mintzer


Subscribe to NEWSDash, click here .

To unsubscribe, click here.

BrightScope / CIO / FWW / Investor Economics / LiquidMetrix / Market Metrics / Matrix Solutions / PLANADVISER / Plan For Life / PLANSPONSOR / Simfund