Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
November 15th, 2018
Benefits & Administration
Analysis Shows Impact of Financial Wellness Programs on Retirement Readiness
When workers are continuously engaged in a financial wellness program, they increase their retirement contribution rates by 38%, and the average age at which workers could retire and replace 80% of their income moves from 68.5 to 66.96, according to Financial Finesse. Read more >
Boost in Balances Giving Retirement Savers False Sense of Security About Retiring Early
MassMutual urges pre-retirees to calculate their projected income and expenses in retirement because although retirement plan balances are healthier than they were five years ago, they may not necessarily be sufficient to support the income needed for so many early retirements. Read more >
Eighty Percent of Employers Focusing on Reducing Health Benefit Costs
However, while 71% of employers see a positive impact on company health benefit costs from wellness programs, more than one-third say they do not offer these programs, the Transamerica Center for Health Studies found. Read more >
Having a ‘Planning Mindset’ Associated With Positive Retirement Outcomes
Wells Fargo uncovered four specific participant characteristics that correlate with a significantly better financial life. 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
3
Lawsuit Argues MetLife Pension Calculations Use Outdated Mortality Table
4
Financially Well Employees Buoy the Bottom Line
5
401(k) Plan Sponsors Enhancing Plan Design
Economic Events

In October, the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3% seasonally adjusted (SA); rising 2.5% over the last 12 months, not seasonally adjusted (NSA), the Bureau of Labor Statistics reports. The index for all items less food and energy rose 0.2% in October, SA; up 2.1% over the year, NSA.

 

Real average hourly earnings decreased 0.1% over the month in October, SA. Average hourly earnings increased 0.2% and CPI-U increased 0.3%. Real average weekly earnings increased 0.1% over the month.

Sponsored message from Franklin Templeton
A New Idea to Improve DC Plans
As Americans approach retirement, their needs change. This calls for an approach to enhancing DC plans with more tools, communications, and income solutions for near retirees. The solution? The Retirement Tier. Read more >
Market Mirror

Wednesday, the Dow fell 205.99 points (0.81%) to 25,080.50, the NASDAQ lost 64.48 points (0.90%) to finish at 7,136.39, and the S&P 500 closed 20.60 points (0.76%) lower at 2,701.58. The Russell 2000 decreased 12.30 points (0.81%) to 1,502.51, and the Wilshire 5000 shed 207.41 points (0.74%) to close at 27,853.78.

 

The price of the 10-year Treasury note increased 6/32, bringing its yield down to 3.122%. The price of the 30-year Treasury bond was up 2/32, decreasing its yield to 3.360%.

Compliance
Regulators Release Informational Copies of 2018 Form 5500
The Department of Labor (DOL)’s Employee Benefits Security Administration (EBSA), the IRS and the Pension Benefit Guaranty Corporation (PBGC) released advance informational copies of the 2018 Form 5500 Annual Return/Report and related instructions. The advance copies of the 2018 Form 5500 are for informational purposes only and cannot be used to file a 2018 Form 5500 Annual Return/Report. Modifications to the Form 5500 and Form 5500-SF and their schedules and instructions have been highlighted. Read more >
ERISA Litigation Landscape Mapped by LexisNexis
With the launch of its latest analytics module, Lex Machina has uncovered a variety of trends across all the flavors of Employee Retirement Income Security Act (ERISA) litigation. For example, the vast majority of ERISA cases are either settled pre-trial or were dismissed via summary judgment or contested dismissals. According to the analytics platform, fewer than 2% of cases proceed to trial. Read more >
Investing
SRI Holdings in ERISA Plans Gaining Ground, but Concerns Remain
The U.S. Sustainable Investment Forum (U.S. SIF) recently published the “Report on U.S. Sustainable, Responsible and Impact Investing Trends 2018” that includes data indicating growth in the use of what it calls sustainable, responsible and impact (SRI) investment options in Employee Retirement Income Security Act (ERISA) retirement plans. The organization reports an uptick in SRI holdings from 2014 to 2016. Despite the uptick in ERISA plans using SRI investment options, some are still wary of doing so. What would encourage more of what the industry calls environmental, social and governance (ESG) offerings in retirement plans? Read more >
Small Talk

ON THIS DATE: In 1777, the Continental Congress approved the Articles of Confederation, precursor to the U.S. Constitution. In 1864, Union Gen. William T. Sherman and his troops began their “March to the Sea” during the U.S. Civil War. In 1867, the first stock ticker was unveiled in New York City. In 1901, Miller Reese patented an electrical hearing aid. In 1920, the League of Nations met for the first time in Geneva, Switzerland. In 1926, the National Broadcasting Co. (NBC) debuted with a radio network of 24 stations. In 1939, President Franklin Roosevelt laid the cornerstone of the Jefferson Memorial in Washington, D.C. In 1969, in Washington, D.C., a quarter of a million protesters staged a peaceful demonstration against the Vietnam War. In 1992, Richard Petty drove in the final race of his 35-year NASCAR career. In 1999, representatives from China and the United States signed a major trade agreement that involved China’s membership in the World Trade Organization (WTO). In 2005, in Amiens, France, Isabelle Dinoire became the first person to undergo a partial face transplant.

SURVEY SAYS: Does your company do anything for employees for Thanksgiving? Read more >
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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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