Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
May 12th, 2015
Benefits & Administration
Many DB Sponsors Still Considering Risk Transfer
A survey of North American defined benefit (DB) pension plan professionals conducted by Clear Path Analysis found 23% are still considering transferring plan liabilities to a third-party insurer in 2015. Clear Path says these trends are partly the result of increasing longevity of the careers and lives of the general population of North America.Read more >
Maine Bill Would Preserve Health Exchange Subsidies
Maine State Representative Linda Sanborn has introduced a bill to safeguard the tax credits that are used by 89% of Mainers who get their health care coverage through the health insurance marketplace. The fate of premium subsidies for individuals who get their health care coverage through federally run exchanges in their states is being considered by the U.S. Supreme Court.Read more >
$24B in Match Dollars Left Unclaimed
Financial Engines examined the saving records of 4.4 million retirement plan participants at 553 companies, and found that one in four employees (25%) misses out on the full company 401(k) match by not saving enough. The typical participant failing to receive the full match loses out on $1,336 of potential free money on the table each year, which adds up to an extra 2.4% of annual income not received.Read more >
Products, Deals & People
Financial services provider The Standard hired Matthew King within the firm’s retirement services group as the new director of third-party administrator (TPA) relationships. King will support The Standard’s TPA partners across the country, focusing on both current and prospective relationships.Read more >
To help investors balance the need for generating income today, while also aiming to drive portfolio growth to generate sustainable future income, global asset manager Russell Investments has launched the Russell Multi-Strategy Income Fund. The new fund, available via financial professionals, invests across a set of asset classes with both income and growth potential using a team of specialist money managers and strategies.Read more >
Churchill Holdings ESOP Participants Sue
Pilot Claims American Airlines Prioritized ‘Underperforming’ ESG Funds
Ask the Experts
When Does a New Plan Have to Meet SECURE 2.0 Mandates?
Sponsored message from Empower
A Closer Look at Empower Retirement
How is Empower Retirement rethinking retirement in America? To find out, watch Alison Cooke Mintzer, our own editor in chief, interview Ed Murphy.Read more >
Market Mirror

Most U.S. stock indices are closing lower as lower oil prices caused energy stocks to fall, according to the Associated Press. The Dow lost 85.94 points (0.47%) to finish at 18,105.17, the NASDAQ was down 9.98 points (0.20%) at 4,993.57, and the S&P 500 fell 10.78 points (0.51%) to 2,105.32. The Russell 2000 increased by 0.88 (0.07%) to 1,235.81, and the Wilshire 5000 closed 94.47 points (0.42%) lower at 22,224.81.

On the NYSE, 3.2 billion shares traded, with 1.8 declining issues for every advancing issue. On the NASDAQ, 2.8 billion shares changed hands, with a slight lead for advancers.

The price of the 10-year Treasury note decreased 1 5/32, bringing its yield up to 2.285%. The price of the 30-year Treasury bond fell 2 24/32, increasing its yield to 3.050%.

From the Magazine
Are Investment Fees Your Participants Pay Reasonable?
Fiduciaries’ responsibilities include ensuring that fees for investments in the plan lineup are “reasonable,” especially because such fees can often be the largest expense participants pay. When selecting investments, plan sponsors generally pay attention to the “expense ratio” of each fund—the sum of all annual operating costs, presented as an annual percentage of the fund’s average net assets under management (AUM).Read more >
How Often Do You Review Your Recordkeeper’s Services?
Asked how often they formally review actual administrative costs/fees, 70.5% of plan sponsors responding to PLANSPONSOR’s 2015 Defined Contribution (DC) Survey said they do so annually. A formal review every one to two years was a distant second, at 8.9% of survey respondents. Apart from formal recordkeeper benchmarking and searches, sponsors should complete active oversight of the plan’s recordkeeper regularly, says Amy Reynolds, U.S. defined contribution consulting leader with Mercer LLC in Richmond, Virginia.Read more >
Audit Says Alternatives Hurt Utah Retirement System
A report titled “A Performance Audit of URS’ Management and Investment Practices,” says the Utah Retirement System’s (URS) heavy allocation to alternative investments, including hedge funds, has diminished potential investment returns. The report notes that URS’ alternative investments increased from 16% to 40% between 2005 and 2013 as URS reduced its allocation in equities and debt securities.Read more >
Small Talk

ON THIS DATE: In 1932, the body of aviation hero Charles Lindbergh’s baby was found, more than two months after he was kidnapped from his family’s Hopewell, New Jersey, mansion. In 1978, the National Oceanic and Atmospheric Administration announced that they would no longer exclusively name hurricanes after women. In 2000, 19-year-old Adam Petty, son of Winston Cup driver Kyle Petty and grandson of National Association for Stock Car Auto Racing (NASCAR) icon Richard Petty, died from crashing into a wall during practice for a Grand National race at Loudon, New Hampshire.


TUESDAY TRIVIA: According to a survey from Visa, American children were receiving an average of $3.40 per lost tooth from the tooth fairy in 2014.

TRIVIAL PURSUITS: Why is losing your job called ‘getting fired?’Read more >
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Copyright © Asset International, Inc., 2015.

All rights reserved.  No reproduction without prior authorization.

Editorial: Alison Cooke Mintzer


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