Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
June 9th, 2017
Benefits & Administration
PSNC 2017: The Effect of Choice on Regret Aversion and Trust in Sponsor’s DC Plan
Retirement plan participants are short on trust—in the financial industry, the government and even their plan sponsor—which inhibits their saving. On opening day at the PLANSPONSOR National Conference Professor Punam A. Keller, Ph.D., from Dartmouth University’s Tuck School of Business, discussed a new strategy that improves participants’ savings, and trust in their plan sponsors. Read more >
PSNC 2017: Top Trends
While good ideas may come and go, they sometimes need rethinking. Several such ideas were discussed along with other industry trends at the PLANSPONSOR National Conference. For two examples: Experts suggested that taking away participants’ choice is being overdone. And, as to retirement income having a single solution? “That’s a unicorn that just does not exist.” Read more >
MOST READ ARTICLES
1
The Senate Math That Could Block SECURE Act
2
House Committee Advances Bill to Establish Union Pension Lifeline Program
3
Open MEPs Not for Every Plan Sponsor
4
Driving Financial Wellness at Work
5
Pension Participants Claim ERISA Breaches in Dow DuPont Pension Transfer
PSNC 2017: Plan Design Elements of the Future
Live polling from before the plan design panel at the PLANSPONSOR National Conference revealed some work to be done. While sponsors noted concerns about low savings rates and employees not retiring, most failed to use the automatic features that could help address both. The corporate panelists—a large- and mega-plan sponsor—presented their experience with today’s cutting-edge plan design and how it helped. Read more >
Economic Events

In the week ending June 3, the advance figure for seasonally adjusted initial claims for unemployment insurance was 245,000, a decrease of 10,000 from the previous week’s revised level of 255,000, the Labor Department reported. The four-week moving average was 242,000, an increase of 2,250 from the previous week’s revised average of 239,750.

The average interest rate for a 30-year fixed-rate mortgage is 3.89%, down from 3.94% one week ago, according to Freddie Mac. The average interest rate for a 15-year fixed-rate mortgage is 3.16%, down from 3.19%.

Sponsored message from PNC
Assess Your Organization’s Retirement Plan With PNC’s No-Cost Evaluation
Your employees deserve high standards, and at PNC Retirement Solutions(r), we believe you deserve the same. That’s why we’re offering a no-cost retirement plan evaluation, to help you build a plan that fits the needs of your organization and employees. Read more >
Market Mirror

Thursday, the Dow was up 8.84 points (0.04%) at 21,182.53, the NASDAQ closed 24.38 points (0.03%) higher at 6,321.76, and the S&P 500 was virtually unchanged at 2,433.79. The Russell 2000 gained 18.94 points (1.36%) to finish at 1,415.61, and the Wilshire 5000 increased 39.54 points (0.16%) to 25,312.70.

The price of the 10-year Treasury note was down 3/32, increasing its yield to 2.186%. The price of the 30-year Treasury bond decreased 11/32, bringing its yield up to 2.853%.

Compliance
PSNC 2017: Washington Update
The venue for this year’s PLANSPONSOR National Conference is aptly just a mile from the U.S. Capitol and the White House. Two top ERISA attorneys gave their best predictions about how tax reform, open multiple employer plans (MEPs), fiduciary rulemaking and other regulatory and legislative matters will evolve under Republican leadership. Plan sponsors were warned to watch for changes in their provider-client relationships and services. Read more >
From the Magazine
DB Focus: Can This Plan Be Saved?
The defined benefit (DB) pension plan, an American invention, has been a national treasure, providing retirement security to workers in both the private and public sectors for generations. However, running these plans well for the long term is expensive and unwieldy, making them a target for criticism, and regulation, from all sides. Many corporate sponsors have given up on them altogether, while other private and public plan sponsors have been forced to starve them of the resources they need to grow and pay their obligations. Can the American defined benefit plan be saved? Read more >
Small Talk

ON THIS DATE: In 1931, Robert H. Goddard patented a rocket-fueled aircraft design. 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 1986, the Rogers Commission released a report on the Challenger disaster. The report explained that the spacecraft blew up as a result of a failure in a solid rocket booster joint. In 2000, Canada and the United States signed a border security agreement. The agreement called for the establishment of a border-enforcement team. In 2000, the U.S. House of Representatives voted to repeal gift and estate taxes. The bill called for the taxes to be phased out over 10 years. In 2011, the world’s first artificial organ transplant was performed. It was an artificial windpipe coated with stem cells.

 

Sorry, no FRIDAY FILES this week.

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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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