Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
May 5th, 2015
Benefits & Administration
Having a Plan for Retirement Increases Confidence
Forty-five percent of respondents to a survey from Deloitte Center for Financial Services feel “very secure” in having enough savings and income to maintain a comfortable retirement lifestyle. Those with a formal plan for retirement savings and income were more than twice as likely to say they feel secure about their retirement as individuals without one. The survey reveals the workplace is emerging as a potentially fruitful venue for engaging individuals in broader retirement planning.Read more >
The funded status of the typical U.S. corporate pension plan increased 2.9 percentage points in April to 90.1%, according to the BNY Mellon Investment Strategy and Solutions Group (ISSG). ”Corporate plans are seeing the benefits of a slight rise in interest rates, which have increased for three consecutive months and are pushing down liabilities,” says Andrew D. Wozniak, head of fiduciary solutions, ISSG.Read more >
Most Employees Plan to Partially Retire
A new study from HSBC finds more than four in 10 working Americans plan to semi-retire when leaving the full-time work force—nearly double the number of current retirees who report that they left full-time work in steps (22%). In today’s world, the process of retiring is often more of a gradual transition, with many opting for a move into semi-retirement first, explains Charlie Nunn, group head of wealth management at HSBC. He adds that respondents gave different reasons for wanting to enter into semi-retirement, with more saying they’ll do so by choice than by necessity.Read more >
Nurses need financial guidance, Fidelity finds in a study, and when they use advice or education offered by their employers, about one-third take a specific action, mostly to boost plan contributions. Retirement guidance in the workplace may be underutilized, but the study also finds that 85% of those who don’t take advantage of it would be motivated to do so if they were given options that enhanced accessibility.Read more >
UAW Members Ratify Contracts With Big 3 Automakers
Ask the Experts
Can a Plan Sponsor Limit Hardship Distributions?
Deals and People
Nomination Period Open for 2024 Plan Sponsor of the Year Awards
PLANSPONSOR’s 2015 Participant Survey
For most Americans, the road to retirement is a long and often uphill journey. Along the way, future retirees encounter a wide range of partners willing to lend support; employers, advisers, investment and service providers—even the federal government—all seek to provide guardrails that can serve to keep savers on track. Overall, the system seems to be working: People are generally moving in the right direction by increasing their savings amount, but our annual Participant Survey finds that workers participating—or not—in employer-sponsored plans still find themselves a long way from the summit.Read more >
Sponsored message from Empower
A Closer Look at Empower Retirement
How is Empower Retirement rethinking retirement in America? To find out, watch Alison Cooke Mintzer, our own editor in chief, interview Ed Murphy.Read more >
Products, Deals & People
SEI Institutional Group announced the launch of two institutional funds created to align with the investment directives set forth by the United States Conference of Catholic Bishops (USCCB). The goal of the Catholic Values Equity Fund and the Catholic Values Fixed Income Fund is to provide Catholic institutions with high quality, multi-manager products that align with their core values, without sacrificing diversification or return potential, SEI says.Read more >
Mercer Tools Support Value-Based Health Care Strategies
Mercer has launched a suite of solutions to help employers navigate the growing market for value-based health care. Molly Loftus, chief actuary for health and benefits at Mercer in Hartford, Connecticut, explains to PLANSPONSOR that value-based care is a term used by health care organizations (HCOs) and accountable care organizations (ACO) to describe a financing mechanism by which health care providers earn incentives for managing costs and improving quality of care. A portion of the revenue stream which goes to the provider system goes into a pool of funds for paying these incentives. Traditionally, providers have been paid incentives based on how many times they do a procedure and how complicated the procedure is.Read more >
ShareBuilder 401k, a specialist in exchange-traded fund (ETF)-based retirement plans for employers of all sizes, is waiving new plan setup fees from May 4 through May 17. The firm says it often hears from smaller employers that even modest plan startup costs have prevented wider plan ownership among America’s small-business population.Read more >
Economic Events
New orders for manufactured goods in March, up following seven consecutive monthly decreases, increased $9.6 billion or 2.1% to $476.5 billion, the U.S. Census Bureau reported. This followed a 0.1% February decrease. Shipments, up two consecutive months, increased $2.3 billion or 0.5% to $482.2 billion. Unfilled orders, up following three consecutive monthly decreases, increased $1.0 billion or 0.1% to $1,157.3 billion. Inventories, down three of the last four months, decreased $1.1 billion or 0.2% to $649.1 billion.
Market Mirror

Yesterday, the Dow increased 46.34 points (0.26%) to 18,070.40, the NASDAQ was up 11.54 points (0.23%) at 5,016.93, and the S&P 500 closed 6.17 points (0.29%) higher at 2,114.46. The Russell 2000 climbed 5.11 points (0.42%) to 1,233.21, and the Wilshire 5000 gained 65.91 points (0.30%) to finish at 22,313.90.

On the NYSE, 3.2 billion shares changed hands, and on the NASDAQ, 2.8 billion shares traded, with 1.4 advancing issues for every declining issue on both exchanges.

The price of the 10-year Treasury note was down 6/32, increasing its yield to 2.140%. The price of the 30-year Treasury bond decreased 29/32, bringing its yield up to 2.877%.

From the Magazine
Voice: Drafting Plan Committee Charters
It is important to recognize that, whenever a plan committee comes together, it is likely to be subject to the entity’s overarching governance structure. Governance decisions and the development process for establishing a charter should involve legal counsel. A charter should reflect the plan sponsor’s and/or committee’s approach to governance and risk management, as well as describe best practices for members.Read more >
Small Talk

ON THIS DATE: In 1862, the Battle of Puebla took place. The victory of the Mexican Army over occupying French forces is celebrated as Cinco de Mayo Day. In 1865, the Thirteenth Amendment was ratified, abolishing slavery in the U.S. In 1891, Music Hall was dedicated in New York City. It was later renamed Carnegie Hall. In 1925, John T. Scopes, a biology teacher in Dayton, Tennessee, was arrested for teaching Darwin’s theory of evolution. In 1961, from Cape Canaveral, Florida, Navy Commander Alan Bartlett Shepard Jr. was launched into space aboard the Freedom 7 space capsule, becoming the first American astronaut to travel into space. In 1966, Willie Mays broke the National League record for home runs when he hit his 512th. In 1979, Peaches & Herb reached No. 1 on the Billboard pop chart with “Reunited.”


TUESDAY TRIVIA: The honey bee is the only bee species that dies after stinging someone. It has a barbed stinger which pulls away from its stomach along with a poison sac after stinging. The stomach rupture kills it.

TRIVIAL PURSUITS: Now, we are not surprised that professional athletes make more than the U.S. president, but the first time it happened, people were astonished. Who was the first professional athlete to make more than the U.S. president at the time?Read more >
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News from


Copyright © Asset International, Inc., 2015.

All rights reserved.  No reproduction without prior authorization.

Editorial: Alison Cooke Mintzer


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