Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
March 22nd, 2017
Benefits & Administration
Americans Cite Several Reasons for Not Saving More for Retirement
For the first time in more than six years of polling, Americans say they feel more comfortable with the savings they have now compared to the year before, according to a Bankrate.com report. However, a Bankrate survey finds they’re not doing a better job at saving: 21% of working Americans aren’t saving any of their incomes. The top reason Americans aren’t saving more money, reported by nearly two-in-five, was having a lot of expenses. Read more >
Medical Expenses and Debt Among Retirement Concerns
According to the Employee Benefit Research Institute’s 2017 Retirement Confidence Survey (RCS), workers’ confidence in their ability to afford basic expenses in retirement is higher than the confidence they report regarding their ability to pay for medical expenses in retirement. In addition, nearly three in five workers (59%) say debt is a problem for them. Read more >
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Vanguard Outlines ‘Last Best Chance’ for DB Plan Lump Sums
A recent analysis published by Vanguard suggests 2017 might be the “last best chance” for defined benefit (DB) plan sponsors to pursue a lump sum strategy on favorable terms. The pressure to move on lump sums today is largely due to changes driven by the Internal Revenue Service (IRS) and, “to a lesser but still meaningful extent,” by the Pension Benefit Guaranty Corporation (PBGC). Recent interest rate movements are also impacting the appeal of pursuing a lump sum, according to Vanguard. Read more >
Retirement Confidence Doesn’t Match Planning
Six in 10 American workers feel confident in their ability to live comfortably in retirement, though few (18%) feel very confident, according to the Employee Benefit Research Institute’s 2017 Retirement Confidence Survey (RCS). However, just 18% of workers feel very confident that they are doing a good job preparing for retirement, and only 38% feel somewhat confident. Thirty-one percent report that they feel mentally or emotionally stressed about preparing for retirement. The survey found just four in 10 workers report they and/or their spouse have ever tried to calculate how much money they will need to have saved to live comfortably in retirement, and fewer have taken other steps to prepare. Read more >
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Products, Deals and People
Trucker Huss Fills Determination Letter Gap
The new Qualified Plan Compliance Program (QPC) from Trucker Huss aims to “fill the void left by the Internal Revenue Service’s recent curtailment of the determination letter program for individually designed qualified retirement plans.” QPCP provides plan sponsors with a written opinion of counsel that their plan document, as amended after the date of their last IRS determination letter, continues to maintain its tax-qualified status as to form. Read more >
Market Mirror

Tuesday, the Dow decreased 237.85 points (1.14%) to 20,668.01, the NASDAQ lost 107.70 points (1.83%) to finish at 5,793.83, and the S&P 500 closed 29.45 points (1.24%) lower at 2,344.02. The Russell 2000 fell 37.55 points (2.71%) to 1,346.54, and the Wilshire 5000 was down 153.91 points (0.63%) at 24,429.98.

On the NYSE, 3.1 billion shares traded, with declining issues outnumbering advancing issues 4 to 1. On the NASDAQ, 3.0 billion shares changed hands, with a more than 5 to 1 lead for decliners.

The price of the 10-year Treasury note increased 12/32, bringing its yield down to 2.419%. The price of the 30-year Treasury bond climbed 28/32, decreasing its yield to 3.032%.

Ask the Experts
“I read your Ask the Experts column regarding 403(a) plan mergers and you made brief mention of the fact that church 401(a) and 403(b) plans could be merged. Is this true? How about church 401(k) plans—could they be merged with 403(b) plans as well?” Read more >
Small Talk

ON THIS DATE: In 1457, Gutenberg Bible became the first printed book. In 1765, the Stamp Act was passed. It was the first direct British tax on the American colonists. In 1882, the U.S. Congress outlawed polygamy. In 1903, Niagara Falls ran out of water due to a drought. In 1933, U.S. President Franklin D. Roosevelt signed a bill legalizing the sale and possession of be.er and wine containing up to 3.2% alc.ohol. In 1934, the first Masters golf championship began in Augusta, Georgia. In 1935, Persia was renamed Iran. In 1954, the first shopping mall opened in Southfield, Michigan. In 1974, the Viet Cong proposed a new truce with the U.S. and South Vietnam. In 1978, Karl Wallenda, of the Flying Wallendas, fell to his death while walking a cable strung between to hotels in San Juan, Puerto Rico. In 1980, People for Ethical Treatment of Animals (PETA) was founded by Ingrid Newkirk and Alex Pacheco. In 1997, Tara Lipinski, at 14 years and 10 months, became the youngest women’s world figure skating champion.

 

WEDNESDAY WISDOM: “Common sense is not so common.”—Voltaire, French philosopher

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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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