Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
May 9th, 2018

Corporate 401(k) <$10mm PolyQuest, Inc.

Full profiles of the 2018 Plan Sponsor of the Year Winners are now online. Read how PolyQuest, Inc. has been very proactive in creating a great retirement plan for employees.Read more >
Webcast Event
Join us tomorrow for the webcast, “Using Employee Data to Select an Optimal Default: Where Can Managed Accounts Fit?”Read more >
Benefit and Administration
Plan Distribution Behavior Dictated By Plan Design
Because individuals’ financial needs in retirement can vary over time and from one person to another, it is crucially important that a defined contribution (DC) plan offer an array of retirement income and distribution options, according to the latest research from the Defined Contribution Institutional Investment Association (DCIIA). According to “Design Matters: Plan Distribution Options,” DC plan sponsors are increasingly concerned about effectively providing participants with the retirement income flexibility they need and want after separation from active service. However, they face uncertainty about what are the best approaches.Read more >
Financial Wellness Education Key to Participants’ Trust in Retirement Plan Providers
Americans who participate in 401(k) plans are increasingly more trusting of the financial firms they rely on to manage their retirement savings, according to the National Association of Retirement Plan Participants (NARPP) 2018 Participant Trust and Engagement study, which tracks the attitudes and behaviors of 4,500 retirement plan participants from across the country. The study shows that higher levels of trust lead to better financial decision-making which includes higher rates of savings, increased commitment to savings, and increased loyalty to providers.Read more >
Finalized Form 5500 Changes Add to Plan Sponsors’ Responsibilities
2021 Recordkeeping Survey
Employees Cite Several Reasons for Not Participating in Financial Wellness Programs
TRIVIAL PURSUITS: Which are the most northern, southern, eastern and western U.S. States?
Considerations to Help DC Plan Sponsors Regroup for the New Year
State Pension Plans Reverse Two Consecutive Years of Return Declines
“A primary driver of the improvement in the funding ratio was the increase in global equity values for the 12-month period ending June 30, 2017,” notes Ned McGuire, managing director and a member of the Pension Risk Solutions Group of Wilshire Consulting.Read more >
2018 Planning & Progress Study: Many Expect to Delay Retirement
Nearly eight in 10 people say they are “extremely” or “somewhat” concerned about affording a comfortable retirement, and two-thirds of U.S. adults believe there is a real chance they will outlive their savings, according to the Northwestern Mutual 2018 Planning & Progress Study. The study found about one in three Americans have less than $5,000 in retirement savings, and one in five have no individual private retirement savings at all. And, three-quarters of Americans believe it is “not at all likely” or only “somewhat likely” that Social Security will be available when they retire.Read more >
Market Mirror

Tuesday, the Dow was up 2.89 points (0.01%) at 24,360.21, the NASDAQ increased 1.69 points (0.02%) to 7,266.90, and the S&P 500 was virtually unchanged at 2,671.92. The Russell 2000 gained 7.44 points (0.47%) to finish at 1,586.39, and the Wilshire 5000 increased 12.93 points (0.05%) to 27,828.60.

The price of the 10-year Treasury note decreased 7/32, bringing its yield up to 2.976%. The price of the 30-year Treasury bond was down 3/32, increasing its yield to 3.129%.

Industry Voices
Options for Unaffordable Pensions: Funding Waivers and In-Kind Contributions
In Part II of a series, Michael Kreps and Mark Carolan of Groom Law Group discuss funding waivers and in-kind contributions as options for unaffordable pensions.Read more >
Ask the Experts
Can a Church Have Two 403(b)s With Two Different Vendors?
“A church has a 403(b) plan that covers two pastors—one of which who wishes to continue his contributions to the current plan, and another who wants to start a new 403(b) with a separate 403(b) plan provider. Can the church have two separate plans with two separate vendors?”Read more >
Institutional Investor Returns Pulled Down by Market Losses
Institutional assets tracked by the Wilshire Trust Universe Comparison Service (Wilshire TUCS) saw a median return of -0.47% for all plan types in the first quarter and a median one-year gain of 9.51%. “This quarter marked the first negative quarter since third quarter of 2015,” says Jason Schwarz, president, Wilshire Analytics and Wilshire Funds Management. “Returns for the quarter pulled the one-year return of 9.51% for the year ending March 31, 2018, down from 14.72% for the year ending December 31, 2017.” Wilshire TUCS first quarter returns were weighed down by losses across all major asset classes.Read more >
Small Talk
Reports from the Society of Actuaries (SOA) reveal the funded status for pension plans of professional athletes. The National Hockey League (NHL) is doing better than the National Football League (NFL) and the National Basketball Association (NBA), with a funded ratio for funding purposes of 137% and a funded ratio based on market value of 50%.Read more >

ON THIS DATE: In 1926, Americans Richard Byrd and Floyd Bennett became the first men to fly an airplane over the North Pole. In 1955, West Germany joined NATO. In 1961, Jim Gentile (Baltimore Orioles) set a major league baseball record when he hit a grand slam home run in two consecutive innings. The game was against the Minnesota Twins. In 1994, Nelson Mandela was chosen to be South Africa’s first black president.


WEDNESDAY WISDOM: “Only do what your heart tells you.”—Princess Diana

Share the 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


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