Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
May 29th, 2015
Benefits & Administration
Government Improves Measure of Retirement Income
A new analysis by the Employee Benefit Research Institute (EBRI) shows that new questions to measure income in the U.S. Census Bureau’s Current Population Survey (CPS) revealed a significant amount of income from individual retirement accounts (IRAs) and 401(k)-type plans was being missed across all levels of income for Americans age 65 or older. However, even using new questions, Social Security remains by far the predominant source of income for Americans of retirement age (65 or older), especially for those with incomes in the bottom half.Read more >
Retirement Readiness Low Among Young and Low-Income
The Federal Reserve Board’s latest survey of the financial and economic conditions of American households finds, in general, many individuals want to save for retirement, but also many individuals—especially those with lower incomes—are failing to do so. Additionally, even among those who are saving for retirement, a majority of respondents indicate that they have no or limited confidence in their ability to manage their retirement investments.Read more >
DC Participants Could More Actively Manage Portfolios
Only 15% of defined contribution (DC) retirement plan participants rebalanced their portfolios in 2014—making it one of the lowest trading years on record, according to Aon Hewitt’s analysis of 138 defined contribution (DC) plans, representing 3.5 million eligible workers. Even when eliminating the participants who are fully invested in target-date funds (TDFs) or other premixed portfolio options—which do not require rebalancing—only 19% rebalanced their portfolios. Rob Austin, director of Retirement Research at Aon Hewitt, in Charlotte, North Carolina, tells PLANSPONSOR that even if participants are all in a TDF or managed account, they should periodically consider whether it is still the right investment for them.Read more >
Products, Deals & People
Bill Bensur has joined the national investment leadership team of Towers Watson and will head the firm’s investment office in Pittsburgh. He will be tasked with expanding both the outsourced chief investment officer (OCIO) and traditional consulting businesses in North America.Read more >
MOST READ ARTICLES
1
2021 Target-Date Fund Survey
2
The DOL Has Begun Retirement Plan Cybersecurity Audits
3
2020 Recordkeeping Survey
4
Differences Between Safe Harbor and Traditional DC Plans
5
Rush of Litigation Against Retirement Plans Expected to Continue
UBA Provides Guide for DOL Health Plan Audit
United Benefit Advisors (UBA) released a resource guide meant to walk employers through the process of an audit of group health plans from the U.S. Department of Labor (DOL). The white paper, “Don’t Roll the Dice on Department of Labor Audits,” includes information about how to prepare for an audit, the best way to acclimate staff to the audit process, what the DOL wants, and the most important elements of complying with requests.Read more >
UBS Global Asset management is launching a target-date collective investment trust (CIT) product line for qualified retirement plans. UBS Global Asset Management Trust Company (UBS), a member of the UBS Global Asset Management division of UBS Group AG, will run the CIT products. The CITs seek to track the performance of the Morningstar Lifetime Allocation Indexes.Read more >
Transamerica Retirement Solutions has updated My TRSRetire, its mobile application for participants. Retirement plan participants have access to all their Transamerica retirement plan accounts, so they can view account and loan balances, current asset allocation, and personal rate of return information. The app also lets participants complete transactions, and users gain a clearer understanding of their personal retirement picture with the app’s OnTrack tool.Read more >
Economic Events

In the week ending May 23, the advance figure for seasonally adjusted initial claims for unemployment insurance was 282,000, an increase of 7,000 from the previous week’s revised level, the Labor Department reported. The four-week moving average was 271,500, an increase of 5,000 from the previous week’s revised average.

The average interest rate for a 30-year fixed-rate mortgage is 3.87%, up from 3.84% one week ago, according to Freddie Mac. The average interest rate for a 15-year fixed-rate mortgage is 3.11%, up from 3.05%.

Market Mirror

U.S. stocks fell slightly Thursday, following a sell-off in the Chinese market and continued worries about the approaching debt payment deadline for Greece, according to the Associated Press. The Dow lost 36.87 points (0.20%) to finish at 18,126.12, the NASDAQ closed 8.62 points (0.17%) lower at 5,097.98, and the S&P 500 slipped 2.69 points (0.13%) to 2,120.79. The Russell 2000 decreased 1.26 points (0.10%) to 1,253.10, and the Wilshire 5000 was down 31.65 points (0.14%) at 22,391.29.

On the NYSE, 3.2 billion shares traded, with 1.4 declining issues for every advancing issue. On the NASDAQ, 2.8 billion shares changed hands, with a 1.2 to 1 ratio of decliners to advancers.

The price of the 10-year Treasury note slipped 3/32, increasing its yield to 2.140%. The price of the 30-year Treasury bond decreased 14/32, bringing its yield up to 2.890%.

Compliance
IRS Announces Another ACA Presentation
The Internal Revenue Service (IRS) announced an additional webinar discussing employer shared responsibility and the Patient Protection and Affordable Care Act (ACA)-required information reporting by employers and providers of minimum essential coverage. “Due to overwhelming interest we are offering another opportunity for those who were not able to attend the previously scheduled events,” the agency said.Read more >
Small Talk

ON THIS DATE: In 1790, Rhode Island became the last of the original thirteen colonies to ratify the U.S. Constitution. In 1848, following approval of statehood by the territory’s citizens, Wisconsin entered the Union as the 30th state. In 1916, the official flag of the president of the United States was adopted. In 1917, John Fitzgerald Kennedy was born into a politically and socially prominent family in Brookline, Massachusetts. In 1953, Edmund Hillary of New Zealand and Tenzing Norgay, a Sherpa of Nepal, became the first explorers to reach the summit of Mount Everest.

 

And now it’s time for FRIDAY FILES!

Some of this guy’s animal impressions are amazing.Read more >
I thought scarecrows were supposed to scare birds AWAY from gardens.Read more >

In Berlin, Germany, a thief broke into the new interior ministry headquarters days before staff moved in—and stole the toilet seats. In addition, the thief stole the faucets and toilet paper holders. “Many of the toilets are unusable. The atmosphere is rather strained,” said an employee who chose to remain anonymous, according the UK’s The Telegraph.

In Aspen, Colorado, a man accused of violating a restraining order came into court and placed a stuffed owl on the table in front of him. According to UPI, the man told the judge: “He’s a very sensitive guy, has law degrees from Yale, Harvard and Stanford. I think he’ll be able to represent me before a public defender comes online.”

In Seattle, Washington, a couple checked online and discovered they had a lottery ticket worth $1 million. Their luck could have turned sour when a thief broke into their car, where the lottery ticket was laying in plain view. However, the thief stole only a pair of sunglasses sitting on top of the ticket and left the ticket in the car.

Ways to trick your sense of touch.Read more >

In Knoxville, Tennessee, a Delta flight from Philadelphia to Atlanta was diverted to Knoxville about 2 p.m. Tuesday due to weather in Georgia. Soon Twitter was abuzz with reports that the captain and crew had ordered pizza for the whole plane, according to the Associated Press. Delta spokesman Morgan Durrant said the pizza party was part of a new airline policy. “It’s part of an effort company-wide when weather disrupts our operation to get food and beverages to delayed customers,” Durrant told CNN.

In Chongqing, China, the goalkeeper for the Chongqing Lifan soccer team was sipping on his water bottle next to the goal during a game when a midfielder for the Lianoning Whowin team kicked the ball into the untended goal. UPI reports that the goalkeeper, who apologized to the team in private, was fined $8,064 for missing the goal, which cost Chongqing their lead and led to the game finishing in a tie.

In Quincy, Illinois, a couple, married for 59 years and having 12 children, welcomed their 100th grandchild recently. They have 53 grandchildren, 46 great-grandchildren, and the birth of a great-great-grandson on April 8 brought the total to 100.

Have a great weekend, everyone! I’ll see many of you at the PLANSPONSOR National Conference next week. Please say hello.
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 >

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

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