| 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 > |
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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 > | News from PLANSPONSOR.com
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