Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
March 11th, 2015
Benefits & Administration
Millennials Saving, but Is It Enough?
The spending and saving habits of Millennials (those ages 25 to 35) are scrutinized in the Principal Financial Group Millennial Research Study, which contends that the majority could face dim prospects for a comfortable retirement, based on their inadequate current savings patterns. In a recent survey of Millennial workers, 63% report they started saving for retirement before age 25. However, less than one-third are saving at least 10% of their salary through their employer-sponsored retirement plan.Read more >
Ask the Experts
What Is a 403(a) Plan?
“I am an adviser who is familiar with 403(b) plans, but today I came across something I have never heard of—a ‘403(a)’ plan. Is there such a plan? If so, how is it different from a 401(a) or 403(b) plan?”Read more >
Products, Deals & People
Paul Kim has been hired as managing director and head of exchange-traded fund (ETF) strategy at Principal Financial Group. In this newly created role, Kim is responsible for the launch and growth of The Principal’s active ETF business.Read more >
Northern Trust Offers Help with Custom TDFs
Northern Trust has enhanced its services for defined contribution (DC) sponsors to help them more efficiently manage their custom target-date funds (TDFs). Using the SunGard Global Network (SGN) Funds platform, Northern Trust offers more flexibility to support trading for multi-manager white label funds for DC plans. “As our clients have increasingly chosen custom, white label funds as an option for their participants, we want to give them more flexibility,” says Tom Lauer, defined contribution consultant at Northern Trust. “SunGard’s solution gives clients a broader selection of recordkeepers, as not all recordkeepers currently facilitate this process.”Read more >
Economic Events
The U.S. Census Bureau announced that January sales of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations and trading-day differences but not for price changes, were $433.7 billion, down 3.1% from the revised December level and down 1.0% from the January 2014 level.