Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
November 14th, 2018
Benefits & Administration
Even the Most Reliable Data Suggests Households Will Fall Short of Retirement Income Goals
Looking at the various sources of households’ estimated retirement income, the Center for Retirement Research at Boston College found that even the one it felt was most reliable shows roughly half of households are likely to fall short of a target replacement rate of 75%. Read more >
Study Finds Link Between Lower Participation and Fewer Choices in K-12 403(b) Plans
A decrease in investment choice and reduced access to advisers leads to lower retirement plan participation by employees in public education 403(b) plans, according to research published by the National Tax-Deferred Savings Association (NTSA). The research, based on data from nearly 4,500 school districts across the United States, found 25% greater participation in plans with 15 or more investment providers compared to plans with only one provider, and there is a 203% increase in average contribution rates among plans providing access to 15 or more providers compared to plans with only one provider. Read more >
Middle Class Workers Report Mixed Financial Feelings
A survey of more than 1,000 Americans, commissioned by CUNA Mutual Group, found few feel prepared for retirement, with only 28% saying they’ll be able to retire with financial confidence in their lifetime. In fact, many seem to be more focused on short-term goals. Read more >
MOST READ ARTICLES
1
IRS Announces 2019 HSA Contribution Limits
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4% Rule Not a Reliable Retirement Income Withdrawal Strategy for All People
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Lawsuit Argues MetLife Pension Calculations Use Outdated Mortality Table
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Financially Well Employees Buoy the Bottom Line
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401(k) Plan Sponsors Enhancing Plan Design
Products, Deals and People
Fidelity Publishes Global Retirement Guidelines
The new guidelines offer a practical framework to help global and regional employers better understand how much money different workers need to save for a stable retirement. Read more >
Market Mirror

Tuesday, the Dow lost 100.69 points (0.40%) to finish at 25,286.49, the NASDAQ was virtually unchanged at 7,200.88, and the S&P 500 was down 4.04 points (0.15%) at 2,722.18. The Russell 2000 decreased 3.99 points (0.26%) to 1,514.80, and the Wilshire 5000 closed 42.95 points (0.15%) lower at 28,061.18.

The price of the 10-year Treasury note was up 12/32, decreasing its yield to 3.141%. The price of the 30-year Treasury bond increased 14/32, bringing its yield down to 3.363%.

Sponsored message from TIAA
Overcoming Recruitment and Retention Challenges in the Healthcare Market. Read more >
Compliance
DOL Clarifies Fiduciary Roles in Auto-Portability Solution
The Department of Labor (DOL) says plan sponsors have fiduciary responsibility for selecting and monitoring Retirement Clearinghouse’s Auto-Portability Solution, but once assets have been transferred from a plan sponsor’s retirement plan, it is no longer a fiduciary with respect to those assets.   Read more >
Ask the Experts
Suspending Mandatory 403(b) Contributions After a Hardship Withdrawal
“Our plan is a 403(b) plan that has elective deferrals AND a mandatory employee contribution that is a condition of employment and thus is excluded from the 402(g) limit on elective deferrals. Our plan allows for hardship distributions and follows the safe harbor, including the six-month suspension of contributions following a hardship distribution. I know that I need to suspend the elective deferrals, but what about the mandatory contributions? Should those be suspended as well?” Read more >
Small Talk

ON THIS DATE: In 1832, the first streetcar went into operation in New York City. The vehicle was horse-drawn and had room for 30 people. In 1851, Herman Melville’s novel “Moby Dick” was first published in the U.S. In 1881, Charles J. Guiteau’s trial began for the assassination of President James Garfield. In 1922, the British Broadcasting Corporation (BBC) began domestic radio service. In 1935, President Franklin D. Roosevelt proclaimed the Philippine Islands a free commonwealth after its new constitution was approved. In 1968, Yale University announced it was going co-educational. In 1969, Apollo 12 blasted off for the moon from Cape Kennedy, Florida. In 1972, Blue Ribbon Sports became Nike. In 1995, the U.S. government instituted a partial shutdown, closing national parks and museums while most government offices operated with skeleton crews.

 

WEDNESDAY WISDOM: “The greatest remedy for anger is delay.”—Lucius Annaeus Seneca, Roman philosopher

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

Advertising: Paul Zampitella paul.zampitella@strategic-i.com

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