Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
November 13th, 2015
Benefits & Administration
Helping Employees See the Value of HSAs
There is a lot of ammunition an employer can use to get employees to switch to or value a health savings account (HSA) paired with a high-deductible health care plan (HDHP), according to Justyn Harkin, a benefits communications specialist at Jellyvision, a provider of interactive software to help employees with benefits and financial decisions. However, even if employees are convinced to sign up for an HDHP with an HSA, they may experience disappointment when they use the plan, so ongoing communications are needed.Read more >
Americans Skeptical About Social Security
It’s a recipe for trouble, says RBC Wealth Management; while a majority of Americans say they will need to rely on Social Security benefits in retirement, most are not hopeful those benefits will be there. Findings from a survey commissioned by RBC, show one group is more concerned than others.Read more >
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2021 Target-Date Fund Survey
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2020 Recordkeeping Survey
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TRIVIAL PURSUITS: Meaning and Origin of the Idiom “Watershed Moment?”
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Essential Considerations for DC Plan Investment Lineups
A recent analysis by Aon shows the average health care rate increase for mid-size and large companies was 3.2% after plan design changes and vendor negotiations in 2015, marking the lowest rate increase since Aon began tracking the data in 1996. However, employees are paying a greater share of health care costs than ever. Aon also found employers are using a number of strategies to manage costs.Read more >
Changes for Social Security Require Revised Education
In the wake of the Bipartisan Budget Act of 2015, changes to several Social Security claiming strategies have caused a flurry of questions from plan sponsors and plan advisers. Kevin McGarry, director of Nationwide Retirement Institute, says the change in file and suspend has led to a lot of media attention. “More participants are asking questions,” he tells PLANSPONSOR. “The need for education has increased, and will likely continue to grow along with interest around the topic.”Read more >
Products, Deals and People
Investment Product News for the Week
BPV Capital Management partners with AJO and SEI to launch large cap value CIT; Prudential Investment Management announces name change.Read more >
Economic Events

In the week ending November 7, the advance figure for seasonally adjusted initial claims for unemployment insurance was 276,000, unchanged from the previous week’s unrevised level, the Labor Department reported. The four-week moving average was 267,750, an increase from the previous week’s unrevised average of 262,750.

The average interest rate for a 30-year, fixed-rate mortgage is 3.98%, up from 3.87% one week ago, according to Freddie Mac. The average interest rate for a 15-year, fixed-rate mortgage is 3.20%, up from 3.09%.

Market Mirror

A deepening slump in prices for oil, metals and other commodities sent stock prices lower yesterday, according to the Associated Press. The Dow shed 254.15 points (1.44%) to close at 17,448.07, the NASDAQ closed 61.94 points (1.22%) lower at 5,005.08, and the S&P 500 decreased 29.04 points (1.40%) to 2,045.96. The Russell 2000 lost 23.27 points (1.98%) to finish at 1,154.80, and the Wilshire 5000 fell 318.29 points (1.47%) to 21,268.38.

On the NYSE, 3.2 billion shares changed hands, with declining issues outnumbering advancing issues more than 4 to 1. On the NASDAQ, 2.7 billion shares traded, with a more than 3 to 1 lead for decliners.

The price of the 10-year Treasury note was down 1/32, bringing its yield up to 2.313%. The price of the 30-year Treasury bond increased 13/32, decreasing its yield to 3.093%.

Investing
October was a slow month for trades in defined contribution (DC) plans as participants transferred an average of 0.018% of total balances per day—the lowest monthly trading level since June 2014, according to the Aon Hewitt 401(k) Index. When participants made trades, they favored fixed income over equities.Read more >
Insurers Prepping for Interest Rate Changes
Insurance companies are actively planning for interest rate changes that will significantly impact the management of investment portfolios, Cerulli Associates finds in a new survey. The effect of interest rate movements on insurers’ portfolios has implications for retirement plan investments.Read more >
Small Talk
ON THIS DATE: In 1775, during the American Revolution, U.S. forces captured Montreal. In 1805, Johann George Lehner, a Viennese butcher, invented a recipe and called it the “frankfurter.” In 1927, the Holland Tunnel opened to the public, providing access between New York City and New Jersey beneath the Hudson River. In 1942, U.S. President Franklin D. Roosevelt signed a measure lowering the minimum draft age from 21 to 18. In 1956, the U.S. Supreme Court struck down laws calling for racial segregation on public buses. In 1971, the U.S. spacecraft Mariner 9 became the first spacecraft to orbit another planet, Mars. In 1977, the comic strip “Li’l Abner” by Al Capp appeared in newspapers for the last time. In 1982, the Vietnam Veterans Memorial was dedicated in Washington, D.C. In 2001, U.S. President George W. Bush signed an executive order that would allow for military tribunals to try any foreigners captured with connections to the terrorist attacks on the United States on September 11, 2001. It was the first time since World War II that a president had taken such action. In 2009, NASA announced that water had been discovered on the moon. The discovery came from the planned impact on the moon of the Lunar Crater Observation and Sensing Satellite (LCROSS).
SURVEY SAYS: Until about 9:30 a.m. yesterday, this week’s survey did not include the section for respondents to make general comments about how they spend their commuting time. So, for the 60 or so responding readers that did not get the chance to make general comments, here is your chance to do so, if you want.Read more >
And now it’s time for FRIDAY FILES!
I need an alarm like this.Read more >

In Sugar Land, Texas, people arriving for work at a shopping center discovered an alligator in the parking lot—an 800-pound alligator! A trapper was called to take the animal away. After discovering the gator was blind in one eye and only had partial vision in the other, it was decided to take the animal to a gator reserve for its safety.

In Tiffin, Ohio, an inebr.iated man asked his neighbor to take him to a gas station to buy barbecue sauce for a chicken dinner. However, store clerks would not let the neighbor drive the man back home and reported it to police—the neighbor was a 9-year-old boy.

In Spartanburg County, South Carolina, police responded to the home of a couple that had called 911 several times. They reported they saw worms and camouflaged people coming out of the floor of their vehicle, as well as possums and people jumping out of their refrigerator and microwave. According to WYFF, when deputies were there, the two said they had photos of the events, but showed them photos of a basketball goal and tree instead. Because the two had rapid eye tremors and rapid heart rates, police suspect they were on dru.gs.

Before launching a bowling ball up a ramp while driving fast, think it through.Read more >

In Fort Lauderdale, Florida, officer Michael Szeliga of the Pinellas County Sheriff’s Department, was scheduled to receive an award at a Mothers Against Dru.nk Driving (MADD) conference, for making more than 100 DUI arrests. However, according to RAWSTORY, when he arrived at the conference, his supervisors encountered him, and described him as being “wasted.” They sent him back to his hotel room to miss out on both the conference and his award.

In Phoenix, Arizona, police responded to a report of shoplifting, and one suspect ran and fled up onto the roof of a Motel 6. He issued a demand for his surrender—special donuts, jelly filled and covered with powdered sugar, the local NBC station reported. Police called a Dunkin Donuts, and the manager agreed to help them out. He delivered the donuts and some coffee, and police apprehended the suspect.

In New Norfolk, Tasmania, Australia, a pregnant woman awoke one morning to find her baby was on its way. She called an Ambulance Tasmania dispatcher who asked to speak to her partner. The dispatcher told her partner, “Have a look and see what you can see.” Her partner then said, “I’m out of here, I’m going to pass out or be sick. I’m going.” According to ABC Australia, the dispatcher coached the woman through the birth herself over the phone.

Have a great weekend!
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 >

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

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