Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
November 20th, 2015
Benefits & Administration
EBRI Looks at Retirement Spending After Retirement
The first two years of retirement bring a modest drop in spending for the majority of Americans, according to new research from the Employee Benefit Research Institute (EBRI). Still, nearly half of retired households (approximately 46%) wind up spending modestly more than they did just before retirement, EBRI says. “That declines over time, and by the sixth year of retirement, just a third spend more than they did pre-retirement.”Read more >
In the third quarter of 2015 U.S. group pension buy-out sales reached $3.2 billion, according to a LIMRA Secure Retirement Institute sales survey. Trends show more small and medium-sized companies are seeking pension buy-outs, LIMRA says.Read more >
MOST READ ARTICLES
1
SECURE Act 2.0 Passed Unanimously by Ways and Means Committee
2
2020 Recordkeeping Survey
3
Forces Come Together to Make PRTs More Attractive
4
Building Inclusivity Into Employee Benefits
5
DC Plan Participants Need More Than Jargon
Excise Tax Avoidance Strategies Reduce Employer Health Costs
The business imperative to control health benefit cost growth has taken on a new urgency with the fast-approaching implementation of the excise, or “Cadillac,” tax Affordable Care Act’s (ACA’s) provision, Mercer notes. According to the National Survey of Employer-Sponsored Health Plans, conducted annually by Mercer, employer actions to reduce their exposure to the 40% excise tax, which goes into effect in 2018, helped hold growth in health benefits cost per employee to just 3.8% in 2015, for a third straight year of increases below 4%. It will get harder over the years to avoid the excise tax, Mercer says.Read more >
Though not without their struggles, education and retirement system initiatives in other countries can be examples for the U.S.Read more >
Millennials face a unique set of obstacles when saving for retirement, says a new study by Schwab Retirement Plan Services. An unwillingness to sacrifice things they believe add to their present quality of life is one of them.Read more >
Products, Deals and People
Investment Product Launches for the Week
Acuitas establishes new long/short equity option designed for retirement plans, and LGIMA touts new liability-based funds for small and mid-sized pensions.Read more >
Economic Events

In the week ending November 14, the advance figure for seasonally adjusted initial claims was 271,000, a decrease of 5,000 from the previous week’s unrevised level of 276,000, the Labor Department reported. The four-week moving average was 270,750, an increase of 3,000 from the previous week’s unrevised average of 267,750.

The average interest rate for a 30-year fixed-rate mortgage is 3.97%, down from 3.98% one week ago, according to Freddie Mac. The average interest rate for a 15-year fixed-rate mortgage is 3.18%, down from 3.20%.

Market Mirror

Thursday, the Dow was down 4.41 points (0.02%) at 17,732.75, the NASDAQ decreased by 1.56 (0.03%) to 5,073.64, and the S&P 500 slipped 2.34 points (0.11%) to 2,081.24. The Russell 2000 lost 5.02 points (0.43%) to finish at 1,166.72, and the Wilshire 5000 closed 31.59 points (0.15%) lower at 21,606.42.

On the NYSE, 3.2 billion shares traded, with a slight lead for advancers. On the NASDAQ, 2.7 billion shares changed hands, with 1.3 declining issues for every advancing issue.

The price of the 10-year Treasury note slipped 1/32, increasing its yield to 2.250%. The price of the 30-year Treasury bond was up 4/32, decreasing its yield to 3.007%.

Compliance
The agency will share examination program priorities for the new year, among other things.Read more >
From the Magazine
Insights: Happily Ever After
This year, our 2015 Defined Contribution (DC) Survey finds more sponsors say they formally evaluate their provider annually, up to 64% from 30% in 2010—experts generally suggest every three years or so is sufficient. We’ve also seen a continued trend of long-tenured relationships with recordkeepers; 48% of plan sponsors have spent seven years or more with their providers. Some naysayers have suggested that these two data points are at odds—in other words, if plan sponsors really are reviewing their providers regularly, tenures should start to shorten. I don’t agree. In fact, I think there may be reasons that more frequent benchmarking can lead to longer provider tenures.Read more >
Industry Voice
Industry Voice: DOL Reversal on ESG Investing
US SIF and its members and colleagues consistently communicated to the Department of Labor (DOL) that previous guidance about environmental, social and governance (ESG) investing within retirement plans placed improper obstacles between fiduciaries and their legal obligation to serve the best interests of their participants and beneficiaries. But, after more recent guidance, the Employee Retirement Income Security Act (ERISA) will no longer stand in the way of plans more fully considering ESG issues going forward.Read more >
Small Talk

ON THIS DATE: In 1789, New Jersey became the first state to ratify the Bill of Rights. In 1945, twenty-four Nazi leaders went before an international war crimes tribunal in Nuremberg, Germany. In 1962, the Cuban Missile Crisis ended. The Soviet Union removed its missiles and bombers from Cuba and the U.S. ended its blockade of the island. In 1986, the one billionth Little Golden Book was printed. The title was The Poky Little Puppy. In 1998, forty-six states agreed to a $206 billion settlement of health claims against the tobacco industry. The industry also agreed to give up billboard advertising of cigarettes. In 2001, the U.S. Justice Department headquarters building was renamed the Robert F. Kennedy building by President George W. Bush.

 

And now it’s time for FRIDAY FILES!

Here are some recipes in which you can use leftover Thanksgiving food or ingredients.Read more >
You can use the Google search bar for more than just searching content.Read more >
In Minturn, Colorado, a public restroom was named winner of the 2015 Cintas’ America’s Best Restroom Awards. According to UPI, the town of Minturn is set to receive $2,500 worth of restroom services provided by Cintas. The restrooms are made of 320 fabricated wood pieces and feature turquoise walls and steel butterflies on the ceilings. Cintas annually compiles a list of the nation’s best bathrooms based on a set of criteria including cleanliness, visual appeal, innovation, functionality and unique design elements. The list of ten finalists is then put to a national vote to determine the winner.Read more >

In Somerset, Pennsylvania, a 47-year-old woman crashed her car, was arrested for DU.I, tested for blood-alcohol levels and then released. After her release from the state police barracks, the woman offered a stranger $3 for a ride back to her crashed vehicle, which she entered and began driving. According to WTAE in Pittsburgh, police said the woman again lost control of the car and sideswiped a parked car, then crashed into a shed. She was charged the same day for a second DU.I.

In Devon, England, a 16-year-old student changed his naturally blond hair to a reddish-pink. But, his school didn’t like it, so he was told to go home and not return until his hair ‘meets the published requirements.’ According to the UK’s Metro, the student’s dad claims that there is no rule against a student dyeing his or her hair any color.

What is it about cucumbers that spook cats?Read more >

In New York City, a 27-year-old real estate broker and her friend were apparently so disorderly when they hopped into a cab that the driver drove them to the 13th Precinct police station. The Gothamist reports that, when the cab driver got out of the cab to enter the police station, the broker hopped behind the wheel and drove away. Police were able to catch up with her when she was forced to pull over to throw up.

In St. Augustine, Florida, a woman was shopping in a Walmart one night when she heard someone running behind her. Before she could turn around, an 18-year-old man struck her with a pillow. The woman told the man “that’s not really cool,” but he just laughed. Jacksonville’s CBS News station reported that police were called because the woman was scared and upset. The man told police it was a joke, and that he uses it as an unorthodox method to meet people.

In Louisville, Kentucky, there is a new scourge in the city housed inside Metro Government’s own offices. According to INSIDER Louisville, Metro Planning & Design Services manager Joe Reverman sent an email to department staff and administrators saying, “We have recently discovered mass quantities of boogers on the two walls around the urinal in the 3rd floor men’s restroom.” The email threatened retribution, and advised everyone to be lookout for and report suspicious activity. In a follow-up email, Heather Plowman, an executive administrator of Develop Louisville, gave Metro Planning & Design employees tips about how to properly dispose of their boogers, and she said signs were being made to give them a daily reminder of such procedures.

Have a wonderful 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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