Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
May 14th, 2015
Benefits & Administration
Pension ‘Hibernation’ Can Be a Bridge to PRT
Pension risk transfer (PRT) remains a huge challenge for many plan sponsors. Even when plans are fully funded, the sponsor will typically have to pay a substantial premium to the insurer taking on the pension benefit risk. Jim Gannon, managing director of asset allocation and risk management for Russell Investments, says “hibernation” can offer a reasonable path forward when risk transfer is desired but still not within reach.Read more >
Though they may face headwinds from health and other factors, middle-income Boomers want to work in retirement and report high levels of satisfaction when they do, according to “New Expectations, New Rewards: Work in Retirement for Middle-Income Boomers,” a study by Bankers Life Center for a Secure Retirement (CSR). Nearly half of non-working, retired American Baby Boomers (48%) would like to work, but can’t. The reasons vary—their own health, or the health of a loved one, or they can’t find a job.Read more >
Intuitive Design Boosts 401(k) Wellness Scores
Automation, mobility and advice are strengthening employee participation in workplace benefit plans, according to the 2015 Bank of America Merrill Lynch 401(k) Wellness Scorecard, with nearly two-thirds more Millennials participating in a 401(k) plan in 2014 than in the previous year. The previous scorecard showed an energized attitude about saving, particularly among Millennials, and a rise in the use of mobile access, automatic features in 401(k) plans and more personalized advice.Read more >
Products, Deals & People
BB&T Retirement and Institutional Services launched a new rollover servicing platform to expand distribution and rollover services for retirement plan participants.Read more >
Sponsored message from Vanguard
Maximizing the match in DC plans
In this new research note, Vanguard examines the effect of plan design on participants’ decision to maximize employer matching contributions.Read more >