Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
May 11th, 2016
Benefits & Administration
Retirement plan sponsors and advisers try to teach employees to save in retirement plans early because of the effect of compound interest on savings, but there is also a compound effect on fees. A research report from NerdWallet notes that a dollar taken out of a participant’s account to pay plan fees is one less dollar to invest, compound and grow—something plan sponsors can consider when monitoring investments or negotiating administration fees.Read more >
PPA Still Defines Progress for DC Retirement Plans
Whether it’s an employer or a state government offering a retirement plan, one defined contribution (DC) plan expert says there is a common set of best practices that must be kept in mind.Read more >
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Fewer Retirees Have Employer-Sponsored Health Coverage
The drop in the number of employers offering health benefits to retirees means employees will need to save more to cover health costs in retirement.Read more >
Economic Events
The U.S. Census Bureau announced that March sales of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations and trading-day differences but not for price changes, were $430.7 billion, up 0.7% from the revised February level, but down 2.0% from the March 2015 level. March sales of durable goods were down 0.2% from February and were down 0.4% from a year ago. Sales of hardware, and plumbing and heating equipment and supplies were down 2.2% from February. Sales of nondurable goods were up 1.6% from February, but were down 3.5% from last March. Sales of petroleum and petroleum products were up 13.5% from February and sales of farm product raw materials were up 2.7%.
Market Mirror

Major U.S. stock indices posted their biggest gains in two months Tuesday as traders were encouraged by more efforts by China to stem a slowdown in the world’s second-largest economy and prices for crude oil and natural gas bounced higher. The Dow gained 222.44 points (1.26%) to finish at 17,928.35, the NASDAQ closed 59.67 points (1.26%) higher at 4,809.99, and the S&P 500 increased 25.70 points (1.25%) to 2,084.39. The Russell 2000 was up 10.58 points (0.95%) at 1,128.83, and the Wilshire 5000 climbed 253.71 points (1.19%) to 21,530.12.

On the NYSE, 3.2 billion shares changed hands, with advancing issues outnumbering declining issues more than 3 to 1. On the NASDAQ, 2.7 billion shares traded, with a near 2 to 1 lead for advancers.

The price of the 10-year Treasury note was down 2/32, increasing its yield to 1.751%. The price of the 30-year Treasury bond was up 2/32, decreasing its yield to 2.603%.
Ask the Experts
Tips for Reviewing SPDs
“We just received a draft summary plan description (SPD) for our retirement plan for review. I am new to reviewing SPDs; do the Experts have any suggestions as to how I should review?”Read more >
From the Magazine
DB Plan Design: Moving from a DB to a DC Plan
Facing high and uncertain costs, U.S. corporations started to scale back defined benefit (DB) retirement plan offerings about 30 years ago and to migrate to more manageable, account-based hybrid and defined contribution (DC) arrangements. Full termination is a long, complex and expensive project.Read more >
Participant Readiness: Participant Connections
Many retirement plan sponsors and administrators know there are no instant answers for boosting participant outcomes—including the powerful automatic-enrollment and automatic-escalation plan design features. Those can be a great start, experts say, but they are inadequate to ensure success. For that, lasting guidance and support are needed, leading to the natural question: What type of advice is best for my plan—and at what cost?Read more >
Investing
Institutional assets tracked by the Wilshire Trust Universe Comparison Service (Wilshire TUCS) saw a median return of 1.13% for the first quarter, which led to a median trailing annual loss of -1.17%.Read more >
Small Talk
For the second year in a row, Emma and Noah are America’s most popular baby names. This marks the third year at number one for Noah and the second for Emma. There are two new names in the top 10 this year.Read more >

ON THIS DATE: In 1647, Peter Stuyvesant arrived in New Amsterdam (what is now Manhattan, New York) to become governor. In 1858, Minnesota was admitted as the 32nd U.S. state. In 1910, Glacier National Park in Montana was established. In 1927, the Academy of Motion Picture Arts and Sciences was founded. In 1934, a severe two-day dust storm stripped the topsoil from the great plains of the U.S. and created a “Dust Bowl.” The storm was one of many. In 1947, the creation of the tubeless tire was announced by the B.F. Goodrich Co. In 1997, Garry Kasparov, world chess champion, lost his first ever multi-game match to IBM’s chess computer Deep Blue. It was the first time a computer had beaten a world-champion player.

 

WEDNESDAY WISDOM: “When you reach the end of your rope, tie a knot in it and hang on.”—Franklin D. Roosevelt
Share the good news with a friend! Pass the NewsDash along—and tell your friends/associates they can sign up for their own copy.Read more >

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

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