Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
March 7th, 2018
Benefits & Administration
BlackRock DC Pulse Survey Highlights Sponsor Decumulation Challenge
BlackRock has released the results of its third Defined Contribution Pulse Survey, compiling the opinions of some 200 large defined contribution (DC) plan sponsors and about 1,000 plan participants. Sitting down to review the results with PLANSPONSOR, Anne Ackerley, head of BlackRock’s U.S. and Canada defined contribution business, said the data presents a pretty remarkable year-over-year uptick in participant confidence. But, despite this improvement in participant confidence, more plan sponsors this year than last have voiced a concern that their workers may have to delay retirement. Read more >
DB Plan Q&A
DB Q&A: Defined Benefit Plan Mortality Assumptions
Last October, the Internal Revenue Service (IRS) issued final regulations and other guidance on the mortality tables that apply to defined benefit (DB) pension plans for the purposes of minimum funding. These directives affect the calculation of Pension Benefit Guaranty Corporation (PBGC) variable premiums, as well as lump-sum and other accelerated distribution options. Marcia Wagner, founder of The Wagner Law Group, answers questions about the IRS’ guidance about mortality tables that apply for the purposes of minimum funding for DB plans. Read more >
Products, Deals and People
Businessolver and Transamerica Reveal One Wallet Initiative
Businessolver, a provider of benefits administration technology, announced a new strategic collaboration with Transamerica to offer integrated enrollment in retirement plans alongside employer-provided medical and voluntary benefits on the Benefitsolver platform. Read more >
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Economic Events

New orders for manufactured durable goods in January decreased $9.2 billion or 3.7% to $239.7 billion, the U.S. Census Bureau announced. This decrease, down following two consecutive monthly increases, followed a 2.6% December increase. Excluding transportation, new orders decreased 0.3%. Excluding defense, new orders decreased 2.7%. Transportation equipment, also down following two consecutive monthly increases, led the decrease, $8.6 billion or 10.0% to $77.7 billion.

Market Mirror

Tuesday, the Dow increased 9.36 points (0.04%) to 24,884.12, the NASDAQ gained 41.30 points (0.56%) to finish at 7,372.01, and the S&P 500 was up 7.18 points (0.26%) at 2,728.12. The Russell 2000 closed 16.16 points (1.04%) higher at 1,562.20, and the Wilshire 5000 climbed 100.92 points (0.36%) to 28,284.61.

The price of the 10-year Treasury note was up 1/32, decreasing its yield to 2.880%. The price of the 30-year Treasury bond increased 4/32, bringing its yield down to 3.149%.

Compliance
PBGC Issued Proposed Rule on Benefits and Asset Allocations for Terminated Plans
The proposed rule would amend PBGC’s benefit payment regulation by replacing the guarantee limitations applicable to substantial owners with a new limitation applicable to majority owners. Read more >
Tax Reform Changes HSA Limit for Family Coverage
In Internal Revenue Bulletin 2018-10, the Internal Revenue Service (IRS) describes changes to the limit on health savings accounts (HSAs) as prescribed by the Tax Cuts and Jobs Act of 2017. For an individual with self-only coverage, nothing has changed since the IRS announced limits in 2017. Read more >
Ask the Experts
Amounts Allowed for 403(b) Hardships Under Budget Bill
“We currently sponsor an Employee Retirement Income Security Act (ERISA) 403(b) plan and allow hardship withdrawals for elective deferrals, but not earnings, since our understanding is that earnings on elective deferrals are prohibited from being distributed under law. However, we read an article that indicates that the newly passed budget act may have changed all that, so that contributions and earnings may be distributed. Is this true?” Read more >
Small Talk
March Madness starts next week, and a survey from OfficeTeam finds professionals say they spend an average of 25.5 minutes per day on sports-related activities in the office during the college basketball playoffs. Men (64%) and employees ages 18 to 34 (55%) are more likely to say they love keeping up with sports in the office and bonding with colleagues over them. Read more >

ON THIS DATE: In 322 BC, Aristotle, the Greek philosopher, died. In 1774, the British closed the port of Boston to all commerce. In 1854, Charles Miller received a patent for the sewing machine. In 1876, Alexander Graham Bell received a patent (U.S. Patent No. 174,465) for his telephone. In 1911, Willis Farnworth patented the coin-operated locker. In 1911, in the wake of the Mexican Revolution, the U.S. sent 20,000 troops to the border of Mexico. In 1927, a Texas law that banned blacks from voting was ruled unconstitutional by the U.S. Supreme Court. In 1933, the board game Monopoly was invented. In 1951, U.N. forces in Korea under General Matthew Ridgeway launched Operation Ripper against the Chinese. In 1965, state troopers and a sheriff’s posse broke up a march by civil rights demonstrators in Selma, Alabama. In 1968, the Battle of Saigon came to an end. In 1975, the U.S. Senate revised the filibuster rule. The new rule allowed 60 senators to limit debate instead of the previous two-thirds. In 1987, Mike Tyson became the youngest heavyweight titleholder when he beat James Smith in a decision during a 12-round fight in Las Vegas. In 2009, NASA’s Kepler Mission, a space photometer for searching for extrasolar planets in the Milky Way galaxy, was launched from Cape Canaveral Air Force Station, Florida.


WEDNESDAY WISDOM:
“It is easier to prevent bad habits than to break them.”—Benjamin Franklin

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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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