Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
May 24th, 2016
Benefits & Administration
Challenged by enduring marketplace volatility, escalating longevity and mounting Pension Benefit Guaranty Corporation (PBGC) premiums, plan sponsors are recognizing the significant risks caused by their pensions—and the detrimental effects these plans can have on shareholder value. More than 48% of survey respondents indicated they are either considering transferring, or are very likely to transfer, pension risk this year, according to a survey commissioned by Clear Path Analysis and sponsored by Prudential Retirement.Read more >
ERISA 403(b) Plan Costs Down Since 2009
Total Employee Retirement Income Security Act (ERISA) 403(b) plan costs—which includes administrative, advice, fees from Form 5500 filings, and asset-based investment management fees—have decreased since 2009, according to a BrightScope/Investment Company Institute (ICI) examination of ERISA 403(b) plans with at least $1 million in assets that filed audited Form 5500 reports with the U.S. Department of Labor. The study also looked at the composition of investment lineups and plan design features.Read more >
MOST READ ARTICLES
1
Another Schlichter Suit Targets Sponsor and Providers
2
2020 Recordkeeping Survey
3
Participants Are Saving More With ‘TDF-Plus’ Strategies
4
The NQDC Market
5
2020 Best in Class DC Providers
Improving Financial Wellness for Each Generation
While all generations can benefit from financial wellness education, each generation learns differently and has different challenges, and Gen X is especially vulnerable.Read more >
Retirees Have Advice for Younger Workers
Among retired U.S. adults, when asked to complete the sentence, “When I look back on what I might have done differently with my retirement savings, I should have..,” nearly two in five (39%) say they should have started saving earlier in their working life, according to a survey commissioned by Pentegra Retirement Services. Roughly three in five recommend those younger than them start saving earlier in their career (63%) or save more throughout their career (57%).Read more >
Products, Deals and People
Pentegra Retirement Services has created Beyond the SmartPath, which offers indispensable advice from interviews with retirees about what they might have done differently as they look back on their working years.Read more >
Market Mirror

Major U.S. stock indices ended little changed yesterday. The Dow was down 8.01 points (0.05%) at 17,492.93, the NASDAQ decreased 3.78 points (0.08%) to 4,765.78, and the S&P 500 slipped 3.96 points (0.19%) to 2,048.36. The Russell 2000 was virtually unchanged at 1,111.36, and the Wilshire 5000 was up 6.87 points (0.03%) at 21,225.20.

On the NYSE, 3.1 billion shares changed hands, with a slight lead for decliners. On the NASDAQ, 2.7 billion shares traded, with a slight lead for advancing issues.

The price of the 10-year Treasury note was up 2/32, decreasing its yield to 1.836%. The price of the 30-year Treasury bond increased 5/32, bringing its yield down to 2.624%.
Compliance
Supreme Court Revives Part of Verizon PRT Challenge
While agreeing with an appellate court’s decision that the transfer of pension plan liabilities to an insurer was a settlor function, the U.S. Supreme Court disagreed with the dismissal of certain plaintiffs’ claims for lack of standing.Read more >
BB&T Targeted in ERISA Self-Dealing Suit
Participants in BB&T Corporation retirement plans accuse the company of breaching the Employee Retirement Income Security Act (ERISA) by favoring its own proprietary investments options and recordkeeping services at the expense of performance.Read more >
Small Talk
ON THIS DATE: In 1738, the Methodist Church was established. In 1764, Bostonian lawyer James Otis denounced “taxation without representation” and called for the colonies to unite in demonstrating their opposition to Britain’s new tax measures. In 1830, the first passenger railroad service in the U.S. began. In 1844, Samuel F.B. Morse formally opened America’s first telegraph line. The first message was sent from Washington, D.C., to Baltimore, Maryland. The message was “What hath God wrought?” In 1883, after 14 years of construction the Brooklyn Bridge was opened to traffic. In 1958, United Press International was formed through a merger of the United Press and the International News Service. In 1962, the officials of the National Football League ruled that halftime of regular season games would be cut to 15 minutes. In 1994, the four men convicted of bombing the New York’s World Trade Center were each sentenced to 240 years in prison. In 2001, Temba Tsheri, age 15, became the youngest person to reach the summit of Mount Everest.
TRIVIAL PURSUITS: You know that antonyms are words with opposite meanings and synonyms are words with similar meanings. Do you know what a contranym is?Read more >
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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