| Webcast Event | A large body of research now confirms the
magnitude of the leakage problem in the U.S. retirement system. However, little
has been done to investigate the behavioral drivers of leakage, especially
cash-outs. This webcast covers the findings of fresh research conducted by
Boston Research Technologies, offering revealing insights into job changer’s
decisions about their retirement plan balances, particularly related to
cash-outs, as well as their attitudes and behaviors towards portability (moving
their retirement savings), such as leaving those balances in the former plan or
rolling those assets over to their new plan or to an IRA. The session concludes
with practical and effective steps that all plan sponsors should take, given
the risks and opportunities that the study reveals.Read more > | | Benefits & Administration | Generation X Most at Risk Financially | A review of Northwestern Mutual’s 2015 Planning
and Progress Study data shows Generation X has the poorest financial habits of
all generations in the survey. In addition to comprising the majority of
“informal” planners, Gen X has more “spenders” than “savers” compared to other
generations and is the least likely to have more savings than debt.Read more > | Health care insurers report continued rising
premiums into 2016 with claim trends exceeding general inflation for at least
the next 18 months, according to the Spring Healthcare Trend Survey from Wells
Fargo Insurance, part of Wells Fargo & Co. Another challenge facing
employers is the Patient Protection and Affordable Care Act (ACA) excise tax,
or so-called Cadillac tax, on high-cost plans that will be effective in 2018,
Wells Fargo notes.Read more > | Employers Tweaking Early Retiree Health Benefits | Challenges and opportunities created by the
Affordable Care Act (ACA) are prompting 66% of companies to consider altering
their pre-65 retiree health strategies over the next few years, Aon Hewitt finds.
Of those companies considering a different strategy, 35% favor sourcing health
coverage through the public exchanges under a defined contribution (DC)
approach, according to Aon Hewitt’s 2015 Retiree Health Care Survey. More than one-quarter
of companies (28%) are considering eliminating pre-65 retiree coverage and
subsidies altogether.Read more > |
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Washington State OKs Retirement Marketplace | The Small Business Retirement Marketplace is
being launched under a bipartisan bill signed Monday by Washington Governor Jay
Inslee. The measure will give companies with fewer than 100 employees an easily
accessible option for employees to save in a tax-advantaged account. The state
estimates 1.5 million Washington workers lack access to a workplace-based
retirement savings account.Read more > | | Sponsored message from SageView, Vanguard and Ayco | Building a Stronger Retirement Plan for Cabot Corporation See how SageView, Vanguard, and Ayco helped their client Cabot Corporation redefine their retirement plan and push participation rates to 94%.Read more > | | Market Mirror | Yesterday,
the Dow was down 26.99 points (0.15%) at 18,285.40, the NASDAQ increased 1.71
points (0.03%) to 5,071.74, and the S&P 500 decreased 1.98 points (0.09%)
to 2,125.85. The Russell 2000 inched up 2.08 points (0.17%) to 1,257.74, and the
Wilshire 5000 slipped 15.77 points (0.07%) to 22,451.19.
On the NYSE,
3.2 billion shares traded, with a slight lead for advancers. On the NASDAQ, 2.8
billion shares changed hands, with a nearly even split between declining and
advancing issues.
The price of the 10-year Treasury note was up 12/32,
decreasing its yield to 2.251%. The price of the 30-year Treasury bond
increased 16/32, bringing its yield down to 3.051%.
| | From the Magazine | Who Pays for What Aspects of Your Plan? | When it comes to plan administration fees,
“transparency definitely is ‘in vogue,’” says attorney Adam Cantor, who chairs
the employee benefits and executive compensation group at Wolff & Samson PC
in West Orange, New Jersey. For some sponsors, that includes rethinking how
fees get paid and who pays them.Read more > | Does Your Plan Have a Leakage Problem? | A combination of plan design and targeted
messaging is the best way to stem the flow of plan assets due to loans and
cash-outs, experts say. Loans can have negative effects, says Todd Perala,
director of BMO Retirement Services in Houston, noting that about half become
distributions when participants terminate without repaying the loan, thereby
losing any market upswings and doubling his tax liability.Read more > | | Small Talk | ON THIS DATE: In
1832, in the U.S., the Democratic
Party held its first national convention. In 1881, in Washington, D.C., humanitarians Clara Barton and Adolphus
Solomons founded the American National Red Cross, an organization established
to provide humanitarian aid to victims of wars and natural disasters in
congruence with the International Red Cross. In 1901, Connecticut became the first state to pass a law regulating
motor vehicles, limiting their speed to 12 mph in cities and 15 mph on country
roads. In 1927, American pilot
Charles A. Lindbergh landed at Le Bourget Field in Paris, successfully
completing the first solo, nonstop transatlantic flight and the first ever
nonstop flight between New York and Paris. | SURVEY SAYS: I
recently read that the average amount per tooth the tooth fairy left American
children last year was $3.40, but it ranged from $1.00 to $20.00. This week,
I’d like to know, did you partake in the tooth fairy or other tooth-loss
tradition when you were a child, and if so, how much did you get? If you have
children, do they get more than you did? You may respond to this week’s survey
by 6 p.m. Pacific time today.Read more > | Share the good news with a friend! Pass the Dash along – and tell your
friends/associates they can sign up for their own copy.Read more > | News from PLANSPONSOR.com
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