Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
March 27th, 2019

Shorter Employee Tenure Demands Progressive Plan Design

A worker’s tenure plays into their eligibility to join and their level of engagement with retirement plans, and for this reason, shorter average employee tenure is a plan sponsor issue. Read more >
From the Magazine
Asset Consolidation
Why should plan sponsors care about roll-ins to their retirement plan? Account consolidation gives them, and their participants, a better picture of overall retirement savings and readiness, among other benefits. “We have a very mobile employee population in this country, where people jump from job to job,” says Jana Steele, senior vice president and defined contribution (DC) consultant at Callan LLC in San Francisco. “So if you want to facilitate retirement readiness, how can you help people to consolidate their balances?” Read more >
PLANSPONSOR Awards
2019 Plan Sponsor of the Year Award Finalists
All profiles for our 2019 Plan Sponsor of the Year awards finalists are now online. The winners will be announced at our 2019 PLANSPONSOR / PLANADVISER Excellence in Retirement Awards Dinner Thursday night. Read more >
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Economic Events

Privately-owned housing starts in February were at a seasonally adjusted annual rate of 1,162,000, the Census Bureau reported. This is 8.7% below the revised January estimate of 1,273,000.

 

The Conference Board Consumer Confidence Index declined in March, after increasing in February. The Index now stands at 124.1 (1985=100), down from 131.4 in February. The Present Situation Index—based on consumers’ assessment of current business and labor market conditions—declined, from 172.8 to 160.6. The Expectations Index—based on consumers’ short-term outlook for income, business and labor market conditions—decreased from 103.8 last month to 99.8 this month.

Market Mirror

Tuesday, the Dow was up 140.90 points (0.55%) at 25,657.73, the NASDAQ gained 53.98 points (0.71%) to finish at 7,691.52, and the S&P 500 increased 20.10 points (0.72%) to 2,818.46. The Russell 2000 gained 15.30 points (1.01%) to close at 1,528.17 and the Wilshire 5000 increased 219.15 points (0.76%) to 29,110.70.

 

The price of the 10-year Treasury note dropped 6/32, bringing its yield up to 2.419%. The price of the 30-year Treasury bond was down 6/32, increasing its yield to 2.873%.

Ask the Experts
Timing for Coverage and General Nondiscrimination Testing
“I work for an Employee Retirement Income Security Act (ERISA) 403(b) plan sponsor who provides an employer base contribution that falls outside the safe harbors and is thus subject to the 410(b) coverage and 401(a)(4) general nondiscrimination tests each year. However, we recently transitioned to a new recordkeeper who has stated that we do not need to complete such testing annually, only once every three years. That would be excellent news, because the data collection process is burdensome on our end. Is our recordkeeper correct?” Read more >
Compliance
Plan Sponsors Have a Duty to Monitor Health Benefit Service Providers and Fees
A ruling in an excessive fee case against a health benefit plan sponsor reminds sponsors that the Employee Retirement Income Security Act (ERISA) requires proper monitoring and selection of service providers and their fees for health plans as well as retirement plans. A federal judge’s analysis of Chimes D.C.’s actions are similar to the analyses conducted in ERISA 401(k) and 403(b) litigation. Read more >
Small Talk

ON THIS DATE: In 1794, Congress authorized the creation of the U.S. Navy. In 1860, the corkscrew was patented by M.L. Byrn. In 1884, the first long-distance telephone call was made from Boston to New York. In 1912, the first cherry blossom trees—a gift from Japan—were planted in Washington, D.C. In 1952, the U.S. Eighth Army reached the 38th parallel in Korea, the original dividing line between the two Koreas. In 1976, Washington, D.C., opened its subway system. In 1985, Billy Dee Williams received a star on the Hollywood Walk of Fame.

 

 

WEDNESDAY WISDOM: “Do what you can, with what you have, where you are.”—Theodore Roosevelt

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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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