Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
May 2nd, 2018
Benefits & Administration
The Real Retirement Crisis: Assessing Retirement Savings Adequacy
Andrew G. Biggs, resident scholar at American Enterprise Institute, told attendees of the Plan Sponsor Council of America (PSCA) 71st Annual National Conference, that for most of his 20 years in the retirement industry, if someone had asked him if Americans are undersaving for retirement, he would have said they were. However, he’s been looking at the research and claims that indicate there is a retirement crisis in America and suggests they are understating what Americans will have for retirement income and overstating what they will need. “The outlook is more positive than what the stories tell,” he said. Read more >
Paying for Health Care Costs in Retirement Is Biggest Fear
Americans are most concerned about paying for medical and pharmaceutical expenses in retirement, cited by 31%, according to Franklin Templeton’s “Retirement Income Strategies and Expecations (RISE)” survey. Americans’ second greatest fear is paying off debt (18%) and funding assisted living care (15%).Sixty-two percent of younger Gen X women, those between the ages of 38 and 45, are worried about managing retirement income. Despite these concerns, 67% of Gen X women do not have a retirement income strategy that could last 30 years or more. Read more >
Investors Want Adviser Discussions to Expand Beyond Risk to Retirement Income
Investors are interested in discussing how they can protect themselves in times of market volatility, but they are also interested in discussing guaranteed retirement income, AXA found in a survey of more than 1,000 individuals and 300 financial professionals. Read more >
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Will Student Debt Repayment Support Become Table Stakes?
Student loan education, repayment and refinancing specialist CommonBond hosted a panel discussion about the topic of “the missing benefit,” by which it means payroll integrated student loan repayment and refinancing support for employees. The panel spoke broadly about the student loan debt challenges facing workers across the United States, and they all agreed that both employers and employees will benefit from greater uptake in student loan repayment benefits. Read more >
Economic Events

Construction spending during March was estimated at a seasonally adjusted annual rate of $1,284.7 billion, 1.7% below the revised February estimate of $1,306.4 billion, the Census Bureau reported. The March figure is 3.6% above the March 2017 estimate of $1,239.6 billion. During the first three months of this year, construction spending amounted to $279.0 billion, 5.5% above the $264.5 billion for the same period in 2017.

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Market Mirror

Tuesday, the Dow dropped 64.10 points (0.27%) to close at 24,099.05, the NASDAQ gained 64.44 points (0.91%) to reach 7,130.70, and the S&P 500 increased 6.75 points (0.25%) to reach 2,654.80. The Russell 2000 increased 8.44 points (0.55%) to 1,550.33, and the Wilshire 5000 gained 71.61 points (0.26%) to close at 27,592.56.

 

The price of the 10-year Treasury note fell 4/32, boosting its yield to 2.969%. The price of the 30-year Treasury fell 6/32, increasing its yield to 3.133%.

Compliance
Report Lays Out Causes and Consequences of ERISA Lawsuits
Rather than spell out specific guidance on how plan fiduciaries should act, the Department of Labor (DOL) has historically emphasized enforcement over regulation and guidance, the Center for Retirement Research says. This “means that fiduciaries are often left to guess what practices comply with ERISA [Employee Retirement Income Security Act] and may only become aware of an alleged violation from a DOL investigation or lawsuit,” the Center says. There are three main reasons for lawsuits, including inappropriate investment choices, excessive fees and self-dealing. Read more >
Ask the Experts
Amending Retirement Plans for Final Disability Regulations
“I administer an Employee Retirement Income Security Act (ERISA) 403(b) retirement plan, and our plan provides for early retirement distributions in the event of disability. I was just informed that final disability regulations took effect April 1st, but I know that we did not amend our plan to reflect these new regulations. Should I panic?” Read more >
Small Talk

ON THIS DATE: In 1863, Confederate Gen. Thomas “Stonewall” Jackson was wounded by his own men in the battle of Chancellorsville, Virginia. In 1865, President Andrew Johnson offered $100,000 reward for the capture of Confederate President Jefferson Davis. In 1885, the magazine “Good Housekeeping” was first published. In 1890, the Oklahoma Territory was organized. In 1932, Jack Benny’s first radio show debuted on NBC Radio. In 1941, the Federal Communications Commission agreed to let regular scheduling of TV broadcasts by commercial TV stations begin on July 1, 1941. This was the start of network television. In 1945, Russians took Berlin after 12 days of fierce house-to-house fighting. The Allies announced the surrender of Nazi troops in Italy and parts of Austria. In 1946, prisoners revolted at California’s Alcatraz prison. In 1969, the ocean liner Queen Elizabeth 2 (QE2) made its maiden voyage. In 1970, student anti-war protesters at Ohio’s Kent State University burn down the campus ROTC building. The National Guard took control of the campus. In 1994, Nelson Mandela claimed victory after South Africa’s first democratic elections.

 

 

WEDNESDAY WISDOM: What we really are matters more than what other people think of us.”—Jawaharlal Nehru, former prime minister of India

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

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