Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
November 17th, 2015
Benefits & Administration
Retirement Guidance Needs More Focus on Gen X
Two-thirds (64%) of Gen Xers find themselves frozen by uncertainty whenever they think about retirement, according to the Generations Apart study, commissioned by Allianz Life Insurance Company of North America. This paralysis means they don’t take any positive actions to secure their financial future, despite their skepticism about Social Security and Medicare. The study revealed the type of guidance Gen X needs.Read more >
Men are likelier to have a kicked-back attitude about saving and investing, where women exhibit higher levels of anxiety, according to a study about women’s retirement planning perspectives by the Insured Retirement Institute (IRI).Read more >
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HSAs Can Be Like DC Plans for Retirement Health Costs
Health savings accounts can be used much like defined contribution plans to save for retirement, and the key to growth is investing them. “Most of Americans are unprepared for health care costs in retirement, and an HSA is the best way to save for that,” said Eric Roberts, a consultant at Nyhart Actuary & Employee Benefits, during a webcast hosted by the Healthcare Trends Institute. Of course, the key to growing HSA savings is to invest the money.Read more >
Market Mirror

The stock market closed solidly higher yesterday, led by gains in energy companies as the price of oil turned higher, the Associated Press reported. The Dow gained 237.77 points (1.38%) to finish at 17,483.01, the NASDAQ increased 56.73 points (1.15%) to 4,984.62, and the S&P 500 climbed 30.10 points (1.49%) to 2,053.14. The Russell 2000 was up 9.53 points (0.83%) at 1,156.08, and the Wilshire 5000 closed 291.18 points (1.38%) higher at 21,334.84.

On the NYSE, 3.2 billion shares traded, with a more than 2 to 1 lead for advancers. On the NASDAQ, 2.7 billion shares changed hands, with 1.5 advancing issues for every declining issue.

The price of the 10-year Treasury note slid 2/32, increasing its yield to 2.275%. The price of the 30-year Treasury bond decreased 8/32, bringing its yield up to 3.066%.

Sponsored message from Wells Fargo
PLANSPONSOR interviews Joe Ready
Stephen Moylan interviews Joe Ready, EVP at Wells Fargo Institutional Retirement and Trust. Ready discusses the evolution of 401(k) plans and the future of retirement planning.Read more >
Compliance
State Street’s Handling of GM Stock Gets Court Blessing
After much back and forth, an appellate court has finally dismissed a lawsuit against State Street Bank and Trust Company over its handling of the employee stock ownership portion of General Motors (GM) 401(k) plan. Recognizing that it cannot rely on a presumption of prudence following the Supreme Court’s decision in Fifth Third Bank v. Dudenhoeffer, the 6th U.S. Circuit Court of Appeals said it evaluated State Street’s actions according to a prudent-process standard.Read more >
DOL Issues Guidance About State-Run Plans for Private Sector
The U.S. Department of Labor (DOL) has published a notice of proposed rulemaking and an interpretive bulletin meant to guide states as they create programs to help people without access to retirement plans at work save and invest for their long-term future. The Department’s Interpretive Bulletin 2015-02 sets forth its current view concerning the application of the Employee Retirement Income Security Act (ERISA) to “certain state laws designed to expand the retirement savings options available to private sector workers through ERISA-covered retirement plans.” The Department separately released a proposed regulation describing safe-harbor conditions it would like to set up for states and employers to avoid creation of ERISA-covered plans as a result of state laws that require private sector employers to implement in their workplaces state-administered payroll deduction individual retirement account (IRA) programs, commonly referred to as auto-IRAs.Read more >
From the Magazine
Implementation of Money Market Fund Regulations
The U.S. Securities and Exchange Commission (SEC) is reforming the rules for money market funds. This will have an impact on retirement plans. Money market funds (MMFs) have been used by 401(k) and 403(b) plans to provide a simple, stable and liquid source of income, despite their low returns. The new rules will require committees to re-examine the role of the MMF in their plans and determine which type of fund meets those needs. When the SEC reforms go into effect next October, there will be three main types of these funds.Read more >
Investing
Volatility and geopolitical challenges aside, experts at one ERISA-focused law firm are hearing more frequent inquiries from qualified U.S. retirement plans about investing in domestic Chinese markets. Why the interest to invest in China and Shanghai?Read more >
Small Talk
ON THIS DATE: In 1777, Congress submitted the Articles of Confederation to the states for ratification. In 1800, the U.S. Congress held its first session in Washington, DC, in the partially completed Capitol building. In 1869, the Suez Canal, connecting the Mediterranean and the Red seas, was inaugurated in a ceremony attended by French Empress Eugénie, wife of Napoleon III. In 1958, the Kingston Trio’s “Tom Dooley” hit No. 1 on the Billboard pop chart. In 1962, Washington’s Dulles International Airport was dedicated by U.S. President Kennedy. In 1997, Mario Lemieux was voted into the National Hockey League (NHL) Hall of Fame.
TRIVIAL PURSUITS: While the average person may know that Superman’s alter ego is Clark Kent, and may perhaps know a few other superheroes’ alter egos, one would have to be a superhero aficionado to keep up with all of them. See how many alter egos of popular superheroes you can think of before moving on to the answers.Read more >
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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