| | Benefit Briefs | | Sponsors See Success Boosting Employer Matches | | A new analysis from investment intelligence firm
Strategic Insight shows plan sponsors have enhanced key features and processes
within their retirement plans over the last several years. Strategic Insight,
an Asset International company, examined plan sponsor survey results from
collected by PLANSPONSOR magazine over years 2009 through 2013. The analysis
focused on identifying plan design features that saw aggregate improvements or
declines, especially employer matching contributions, formulas used to
calculate matches, payment schedules and vesting practices. In all, the
analysis identified a positive trend across the defined contribution (DC)
investing landscape in terms of these features. | | Why Plan Sponsors Like DC Plans—and How to Improve Them | | Employers favor defined contribution (DC) retirement
plans over defined benefit (DB) plans for reasons such as cost, predictability
and simplicity, says a recent analysis by Russell Investments. “In theory, a DC
plan can cost the plan sponsor any amount (subject to IRS limits), but in
practice, contribution levels are set to make DC plans cheaper for the
sponsor,” Bob Collie, chief research strategist at Russell Investments, tells
PLANSPONSOR. “On predictability, the DB plan cost to the sponsor is highly
variable and unpredictable. One reason so much information needs to be supplied
for DB plans is to allow investors to assess the possible impact on future
company results. DC plan costs, by contrast, are stable and predictable.” | | | Buyer's Market | | Jim Brockelman will rejoin John Hancock
Retirement Plan Services as national director, mid-market. Brockelman will
report to Bob Carroll, national sales manager, Retirement Plan Services, as he
leads the company’s expansion into the 401(k) mid-market sector. | | BPAS Launches Plan Health Assessment Tool | | BPAS, a provider of retirement plan
administration services, launched the “On Track” report to help its clients
assess the overall health of their retirement plans. BPAS says the tool will
help plan sponsors and plan advisers rate the overall health of their plan by
evaluating the “on track” status of individual participants and the plan as a
whole. The report is run monthly for all plan types and delivered online. | | Consulting firm Mercer announced plans to
purchase Transition Assist, a retiree exchange specializing in helping retirees
in employer-sponsored plans select Medicare supplemental health care insurance.
Transition Assist, which offers health care solutions through a licensed call
center and professionally-trained benefits counselors, will become part of the
full suite of solutions offered by Mercer Marketplace. | | | Economic Events | | Spending on private construction was at a
seasonally adjusted annual rate of $670.8 billion, 0.5% above the revised December
estimate of $667.5 billion. Residential construction was at a seasonally adjusted
annual rate of $359.9 billion in January, 1.1% above the revised December estimate
of $356.0 billion. Nonresidential construction was at a seasonally adjusted
annual rate of $310.9 billion in January, 0.2% below the revised December estimate
of $311.5 billion. | | | Market Mirror | | Major U.S. stock indices took a tumble
Monday, with the Dow falling 153.68 points (0.94%) to 16,168.03. The NASDAQ
lost 30.82 points (0.72%) to finish at 4,277.30, and the S&P 500 closed
13.72 points (0.74%) lower at 1,845.73. The Russell 2000 decreased 6.69 points
(0.57%) to 1,176.34, and the Wilshire 5000 was down 136.11 points (0.68%) at
19,810.73.
On the NYSE, 3.2 billion shares changed
hands, with a 2 to 1 lead for decliners. On the NASDAQ, 2.7 billion shares
traded, with 1.8 declining issues for every advancing issue.
The price of the 10-year Treasury note was up 14/32,
bringing its yield down to 2.599%. The price of the 30-year Treasury bond
increased 16/32, decreasing its yield to 3.555%.
| | | Financial Sense | | The Dietrich Pension Risk Transfer Index fell
nearly three points in February to 95.33. The index, which tracks the relative
attractiveness of annuitizing pension liabilities, also saw the annuity discount
rate proxy of 3.18% fall 19 basis points from the previous month. In addition,
plan funding levels dropped 4% on average in January, giving back nearly 25% of
their 2013 gains as a result of underperforming assets and declining interest
rates. | | | The World at Large | | There is a disconnect between “aspiration and
reality” among the 25% of UK employers who think their defined contribution (DC)
plans will provide an adequate retirement for staff, according to Towers
Watson. | | | Rules & Regulators | | The U.S.
Equal Employment Opportunity Commission (EEOC) has filed an age discrimination
lawsuit against a utility provider in Memphis, Tennessee. The suit alleges Memphis
Light, Gas and Water (MLGW) violated the Age Discrimination in Employment Act
(ADEA) when it refused to promote Carlos Phifer to the position of computer operations
specialist because of his age, then 57. | | Contributions Could Be Capped in 2015 Budget | | The White House proposed budget for 2015, slated
for release March 4, again wants to cap the amount of tax-deferred retirement
contributions. President Barack Obama again proposes a limit on the value of
all tax deductions, defined contribution exclusions and individual retirement
account (IRA) deductions to 28% of income. The budget also proposes an overall
cap of the amount that could be held in tax-deferred accounts, of $3.4 million,
an amount that would theoretically provide an annual retirement income of
$205,000 using a formula based on current interest rates. The amount could be
lowered if interest rates rise. | | | Sponsored message from PLANSPONSOR | PLANSPONSOR Plan Sponsors of the Year – Corporate 401(k) – >$1B
Finalists include Eastman Chemical Company, Google, Inc. and Microsoft Corporation. Winners in each category will be announced in February and recognized at the Awards for Excellence dinner. View other categories. | | | Small Talk | | ON
THIS DATE: In
1789, the first session of the U.S.
Congress was held in New York City as the U.S. Constitution took effect. In 1861, Abraham Lincoln became the 16th
president of the United States. In 1913,
with trouble brewing between the great nations of Europe, Thomas Woodrow Wilson
took office as the 28th president of the United States. In 1933, at the height of the Great Depression, Franklin Delano
Roosevelt was inaugurated as the 32nd president of the United States. In 1995, comedic star John Candy died
suddenly of a heart attack in Mexico.
TUESDAY
TRIVIA: The first microwave oven, the Radarange, weighed
750 pounds, was 5 1/2 feet tall, and cost about $5,000.
| | TRIVIAL PURSUITS: From
what did the idea for inventing the microwave oven come? | | Share the good news with a friend! Pass the Dash along – and tell your
friends/associates they can sign up for their own copy. | | News from PLANSPONSOR.com
Copyright © Asset International, Inc.,
2014.
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rights reserved. No reproduction without
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 | FEATURED |
| | 2014 PLANSPONSOR National Conference | | Now in its ninth year, the PLANSPONSOR National
Conference (PSNC) remains a unique collaboration of plan sponsors, retirement
plan advisers and providers who are focused on understanding and applying the
most innovative investment options, employee education and engagement ideas,
and plan design solutions. The conference also brings a plan sponsor
perspective to many sessions, as panelists share experiences of what has
worked—or not—at their companies. This year’s keynote speaker is Dallas L. Salisbury, president
and CEO of the Employee Benefit Research Institute (EBRI) in Washington, D.C. |
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