Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
March 5th, 2018
Benefits & Administration
Americans Saving Nearly 8% for Retirement
In a survey of 1,000 adults, PenFed Credit Union learned that Americans, on average, are saving 7.6% of their salaries for retirement. This increases to 8.9% for men and decreases to 6.4% for women. The survey also found that people who are automatically enrolled in their retirement savings plan are saving an average of 10.2%, compared to 4.8% for those without automatic enrollment. Read more >
Different Nudging Required for Auto Enrollment Plans Than Opt-In Plans
A study from the TIAA Institute concludes that focusing on financial literacy and understanding of exponential growth is likely to be fruitful for getting defined contribution (DC) plan participants in an opt-in plan, while efforts targeted at procrastination tendencies are likely to be particularly important in automatic enrollment plans. Read more >
DB Plans a Thing of the Past for Most Fortune 500 Companies
In a new report, “Retirement Offerings in the Fortune 500: A Retrospective,” Willis Towers Watson reveals that among these companies, only 16% offered a defined benefit (DB) plan to new hires in 2017, down from 59% in 1998. Nonetheless, 51% of Fortune 500 companies still employ workers who are actively accruing pension benefits, and 93% of those that sponsored a pension in 1998 still manage plan obligations and assets. Read more >
More Than Half of Americans Would Like to Save More
Among those who said they would like to save more, 56% said retirement was a top reason; however, LIMRA found that debt is a major obstacle preventing many people from saving as much as they would like. Read more >
MOST READ ARTICLES
1
Adidas Sued Over Excessive Fees for 401(k) Participants
2
(b)lines Ask the Experts – Proper Delivery Method for SPDs
3
Yale Sued Over Wellness Program ‘Penalty’
4
Employees in Two States Miss Out on One HSA Benefit
5
Some Help for Women’s Retirement Savings Gap May Be Coming
Products, Deals and People
Retirement Industry People Moves
Seyfarth Shaw hires ERISA attorney; Qualified Plan Advisors opens Florida office; Principal Promotes Patterson to Lead Full-Service Retirement and Investor Business; and more. Read more >
Economic Events

THE ECONOMIC WEEK AHEAD: Tomorrow, the Census Bureau will report about factory orders for January. Thursday, the Labor Department will issue its initial claims report. Friday, the Bureau of Labor Statistics will reveal the unemployment rate for February, and the Census Bureau will report about wholesale inventories for January.

Market Mirror

Friday, the Dow was down 70.92 points (0.29%) at 24,538.06, the NASDAQ closed 77.31 points (1.08%) higher at 7,257.87, and the S&P 500 increased 13.58 points (0.51%) to 2,691.25. The Russell 2000 was up 25.78 points (1.71%) at 1,533.17, and the Wilshire 5000 gained 182.92 points (0.66%) to finish at 27,879.39.

 

The price of the 10-yeary Treasury note decreased 15/32, bringing its yield up to 2.862%. The price of the 30-year Treasury bond fell 1 1/32, increasing its yield to 3.142%.

 

WEEK’S WORTH: For the week ending March 2, the Dow climbed 3.05%, the NASDAQ increased 1.09%, and the S&P 500 gained 2.04%. The Russell 2000 was up 1.03%, and the Wilshire 5000 finished 1.87% higher.

Investing
Connecticut State Treasurer Makes Compelling Case for ESG
An open letter penned by Connecticut State Treasurer Denise Nappier presents an articulate defense and endorsement of environmental, social and governance (ESG) investing programs—in this case suggesting divestment from gun manufacturers may be in the best long-term financial interest of the state’s pensioners and other stakeholders. Read more >
Small Talk

ON THIS DATE: In 1750, “King Richard III” was performed in New York City. It was the first Shakespearean play to be presented in America. In 1868, the U.S. Senate was organized into a court of impeachment to decide charges against President Andrew Johnson. In 1923, old-age pension laws were enacted in the states of Montana and Nevada. In 1933, U.S. President Franklin D. Roosevelt ordered a four-day bank holiday in order to stop large amounts of money from being withdrawn from banks. In 1956, the U.S. Supreme Court affirmed the ban on segregation in public schools. In 1985, Mike Bossy (New York Islanders) became the first National Hockey League player to score 50 goals in eight consecutive seasons. In 1998, NASA announced that an orbiting craft had found enough water on the moon to support a human colony and rocket fueling station. In 1998, it was announced that Air Force Lt. Col. Eileen Collins would lead crew of Columbia on a mission to launch a large X-ray telescope. She was the first woman to command a space shuttle mission.

SURVEY SAYS RESPONSES: Last week, I asked NewsDash readers, “How comfortable would you feel if a workplace contact ‘friended’ you on Facebook?” When it comes to managers, nearly half (49.2%) would feel “very uncomfortable” friending on Facebook, while 28.6% reported they would feel “somewhat uncomfortable.” Nearly five percent indicated they had no feeling either way, only 7.9% would feel “somewhat comfortable” and only 9.5% would feel “very comfortable.” More than half (50.8%) of responding readers reported they would feel very uncomfortable friending on Facebook, and 22.2% would feel somewhat uncomfortable. Nearly 8% each selected “no feeling either way” and “somewhat comfortable”, while 11.1% would feel “very comfortable.” Being Facebook friends with clients and vendors followed a similar path, but things were a little different when it came to co-workers. In verbatim comments left by readers, many pointed out that LinkedIn is a better site for business relationships, and many reported they keep their work and personal lives separate. However, some had no problem friending workplace contact, while some said it depended on the relationship outside of work. Editor’s Choice goes to the reader who said: “Facebook is a complete waste of time that can only create problems for people using it. Wrecked marriages, strained relationships and problems at work are only a few of the issues created by our over communication on apps like Facebook. Pick up the phone, meet in person…that is how humans should communicate.” Thanks to all who participated in our survey! Read more >
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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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