Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
March 18th, 2019
From the Magazine
Plan Sponsor Improves Participant Engagement Via Web Tools
According to Kevin Old, director of human resources (HR) at Liebherr USA’s Washington, D.C., offices, there were 930 employees the retirement plan committee wanted to help: 170 who were not contributing enough to receive the 100% match up to 6% of their earnings deferred, and 760 contributing below 10%. Old says he worked closely with Paige Fitzpatrick, his Voya client relations manager, and Ken Rogers, the firm’s adviser and president of Rogers Financial Pensionmark in Greenville, S.C., to try to move the needle through traditional education. But “some participants were still leaving a lot of money on the table,” he says.Read more >
Products, Deals and People
Newport Group Picks Up Recordkeeping Business of PNC Bank
“This transaction will allow PNC to focus on providing fiduciary investment advice to our retirement clients, which is the core of our business,” says Alistair Jessiman, EVP and managing executive at PNC Institutional Asset Management.Read more >
Retirement Industry People Moves
intellicents buys Texas financial planner; Conte Weatlh Advisors adds primary adviser in Tampa location; and Jennison Associates hires fixed income team managing director.Read more >
House Committee Approves Bill Aimed at Increasing Retirement Plan Coverage
TRIVIAL PURSUITS: Residents of the Island of Misfit Toys
Working Past Age 65 May Seem Like a Great Idea …
Employees Don’t Want ‘All or Nothing’ When It Comes to Guaranteed Lifetime Income
2021 Recordkeeping Survey
Economic Events
THE ECONOMIC WEEK AHEAD: Tomorrow, the Census Bureau will report about housing starts in February and factory orders for January. Thursday, the Labor Department will issue its initial claims report. Friday, the National Association of Realtors will report about existing home sales for February, and the Census Bureau will report about wholesale trade for January.
Market Mirror

Friday, the Dow climbed 138.93 points (0.54%) to 25,848.87, the NASDAQ closed 57.62 points (0.76%) higher at 7,688.53, and the S&P 500 increased 14.00 points (0.50%) to 2,822.48. The Russell 2000 was up 3.90 points (0.25%) at 1,553.54, and the Wilshire 5000 gained 129.33 points (0.44%) to finish at 29,193.76.


The price of the 10-year Treasury note increased 11/32, bringing its yield down to 2.590%. The price of the 30-year Treasury bond climbed 20/32, decreasing its yield to 3.016%.


WEEK’S WORTH: For the week ending March 15, the Dow was up 1.57%, the NASDAQ climbed 3.78%, and the S&P 500 gained 2.89%. The Russell 2000 increased 2.08%, and the Wilshire 5000 finished 2.79% higher.
Benefits & Administration
IFEBP Offers Tips for Using Behavioral Finance to Boost Retirement Savings Actions
Stressing what can be lost or gained, peer reviews and comparisons and certain plan design features are among the suggestions offered by the International Foundation of Employee Benefit Plans in a white paper.Read more >
Active TDFs Offer Advantages for DC Plan Participants
Cerulli Associates points to active target-date fund (TDF) performance during market volatility and the ability to mitigate sequence of return risk for defined contribution (DC) plan participants as reasons to consider them.Read more >
Small Talk
ON THIS DATE: In 1673, Lord Berkley sold his half of New Jersey to the Quakers. In 1813, David Melville patented the gas streetlight. In 1818, Congress approved the first pensions for government service. In 1850, Henry Wells and William Fargo founded American Express. In 1865, the Congress of the Confederate States of America adjourned for the last time. In 1881, Barnum and Bailey’s Greatest Show on Earth opened in Madison Square Gardens. In 1922, Mohandas K. Gandhi was sentenced to six years in prison for civil disobedience in India. He served only 2 years of the sentence. In 1931, Schick Inc. displayed the first electric shaver. In 1942, the third military draft began in the U.S. because of World War II. In 1945, 1,250 U.S. bombers attacked Berlin. In 1949, the North Atlantic Treaty Organization (NATO) was ratified. In 1959, President Dwight Eisenhower signed the Hawaii statehood bill. In 1963, the U.S. Supreme Court handed down the Miranda decision concerning legal counsel for defendants. In 1968, Congress repealed the requirement for a gold reserve. In 1971, U.S. helicopters airlifted 1,000 South Vietnamese soldiers out of Laos. In 1990, the first free elections took place in East Germany. In 1992, white South Africans voted for constitutional reforms that would give legal equality to blacks.
SURVEY SAYS RESPONSES: Last week, I asked NewsDash readers, “Do you think it is feasible to expect employees to save in health savings accounts (HSAs) for the long term?” The largest percentage of respondents (44.9%) said it is not feasible to expect employees to save in health savings accounts (HSAs) for the long term. Twenty-nine percent indicated it is feasible if using the right savings strategy, while 24.6% simply said ‘Yes.” In comments left by readers, many stated that it is only feasible for higher-paid employees and pointed out that the average employee struggles just to save in his retirement plan. Others noted that the young and healthy have a chance of accumulating savings in an HSA, but older or less healthy employees need the money. A few readers pointed out that since HSAs are still tied to high-deductible health plans, most HSA savings are needed to cover those deductibles and other out-of-pocket health expenses. I would note that there are legislative proposals to eliminate this pairing. Editor’s Choice goes to the reader who said: “So many people have enough problem adequately funding their 401(k)/retirement plan, and thinking about inflation of health care costs vs. HSA investment returns, I can’t imagine the HSA as a viable option for most people.” A big thank you to all who participated in the survey!Read more >
Share the news with a friend! Pass the NewsDash along and tell your friends/associates they can sign up for their own copy.Read more >

Editorial: Alison Cooke Mintzer


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