Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
May 26th, 2016
Calling All Retirement Plan TPAs
PLANSPONSOR magazine is conducting a survey to provide retirement plans and their advisers a sense of the employer-sponsored retirement plan third-party administrator (TPA) market. This questionnaire is intended to be filled out by TPAs that sell and service employer-sponsored defined contribution and defined benefit plans. The TPA survey results will be published in the July 2016 issue of PLANSPONSOR magazine. Please respond by June 3, 2016.Read more >
Benefits & Administration
Private Exchanges Engage Employees More in Health Benefits
A survey of employees who use private benefits exchanges provided by Liazon, a Willis Towers Watson company, found 83% say they became more engaged in their health care decisions. More than three-quarters (77%) report they value their benefits more.Read more >
Is the UAW’s Demand for Return of Pensions a Realistic Ask?
Delay on Catch-Up Provision Allows Employers to Explore Optional SECURE 2.0 Features
Data and Research
Unplanned Financial Challenges Continue to Plague US Workers’ Retirement Savings
Participants Would Like Sponsors to be More Hands-On
There is a disconnect between what retirement plan sponsors believe their plans should be delivering to participants and their willingness to measure retirement readiness, according to a new report from American Century, “Understanding Plan Sponsors’ Perceptions Around Plans, Participants and Partners.” There is also a disconnect between what sponsors think participants want from them and how much more proactive participants would like their employers to be.Read more >
Market Mirror

Major U.S. stock indices closed higher for a second day Wednesday, as energy companies rose with the price of oil, while chemicals and mining company shares also gained, the Associated Press reports. The Dow climbed 145.46 points (0.82%) to 17,851.51, the NASDAQ closed 33.84 points (0.70%) higher at 4,894.89, and the S&P 500 increased 14.31 points (0.69%) to 2,090.37. The Russell 2000 was up 5.72 points (0.50%) at 1,141.02, and the Wilshire 5000 gained 153.06 points (0.71%) to finish at 21,613.63.

On the NYSE, 3.1 billion shares traded, with a more than 2 to 1 lead for advancers. On the NASDAQ, 2.7 billion shares changed hands, with 1.6 advancing issues for every declining issue.

The price of the 10-year Treasury note was down 2/32, increasing its yield to 1.870%. The price of the 30-year Treasury bond decreased 16/32, bringing its yield up to 2.670%.
Hospital Agrees to Settlement in Church Plan Case
Saint Francis Hospital, one of many health care organizations that have been sued over the “church plan” status of their pensions, has agreed to a $107 million settlement of its case.Read more >
New Excessive Fee Suit Targets Advice, SDBAs
A lawsuit accuses Fidelity of receiving “kickbacks” from Financial Engines and leading retirement plan participants that use its self-directed brokerage account (SDBA) option to purchase higher-priced investments.Read more >
FTSE Russell Finds Growth in Smart Beta Adoption
According to its third annual global institutional market survey, “Smart Beta: 2016 Global Survey Findings from Asset Owners,” FTSE Russell confirms that the percentage of asset owners currently evaluating smart beta has more than doubled from 15% in the first survey in 2014 to 36% in 2016. The survey finds the strongest growth in smart beta adoption is among asset owners with less than $1 billion in assets. Return enhancement and risk reduction continue to be the primary objectives for use of smart beta by asset owners; cost savings are more important in 2016 than in years past.Read more >
Sponsors Can Benefit from More Granular View of Markets
Portfolio managers shared what they feel are the most compelling opportunities in the equity markets today.Read more >
Small Talk
ON THIS DATE: In 1864, the Territory of Montana was organized. In 1865, arrangements were made in New Orleans for the surrender of Confederate forces west of the Mississippi. In 1868, U.S. President Andrew Johnson was acquitted, by one vote, of all charges in his impeachment trial. In 1896, the Dow Jones Industrial Average appeared for the first time in the Wall Street Journal. In 1946, a patent was filed in the United States for an H-bomb. In 1948, the U.S. Congress passed Public Law 557 which permanently established the Civil Air Patrol as the Auxiliary of the new U.S. Air Force. In 1959, the word “Frisbee” became a registered trademark of Wham-O. In 1969, the Apollo 10 astronauts returned to Earth after a successful eight-day dress rehearsal for the first manned moon landing. In 1972, the Strategic Arms Limitation Treaty (SALT I) was signed by the U.S. and USSR. The short-term agreement put a freeze on the testing and deployment of intercontinental and submarine-launched ballistic missiles for a five-year period. In 1973, Kathy Schmidt set an American women’s javelin record with a throw of 207 feet, 10 inches. In 1975, American stuntman Evel Knievel suffered severe spinal injuries in Britain when he crashed while attempting to jump 13 buses in his car. In 1978, the first legal casino in the Eastern U.S. opened in Atlantic City, New Jersey. In 1998, the U.S. Supreme Court ruled that Ellis Island was mainly in New Jersey, not New York. In 1998, the U.S. Supreme Court ruled that police officers in high-speed chases are liable for bystander injuries only if their “actions shock the conscience.”
SURVEY SAYS: Plan leakage is a concern for defined contribution (DC) plan participants’ retirement readiness. This week, I’d like to know have you taken a loan, hardship or other in-service distribution, or have you cashed out a plan upon a job change, and do you regret having done so? You may respond to this week’s survey by 6 p.m. Pacific time today.Read more >
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Editorial: Alison Cooke Mintzer


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