Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
November 27th, 2017
From the Magazine
Navigating RMDs
Required minimum distributions (RMDs) are mandatory, annual withdrawals that participants must take when they turn 70 1/2 years old and are no longer employed, or when they work past that age then retire. Internal Revenue Service (IRS) rules apply to holders of 401(k), 403(b) and profit-sharing plans, as well as individual retirement accounts (IRAs), SEPs [simplified employee pension plans] and SIMPLE [savings incentive match plan for employees] IRAs. For IRAs, SIMPLE IRAs and SEPs, participants must take the RMD at 70 1/2, regardless of employment status. Sponsors need to know the required minimum distribution rules, as well as exceptions, how to calculate them, how recordkeepers help, how RMDs apply to beneficiaries, whether they apply to annuities, the consequences of not taking RMDs and tasks that may get overlooked.Read more >
Products, Deals and People
Retirement Industry People Moves
Nikki Newton is appointed president of Ivy Distributors Inc.; John Hancock Retirement Plan Services forms a new leadership team charged with enhancing the delivery of large customized retirement plans.Read more >
TRIVIAL PURSUITS: Residents of the Island of Misfit Toys
2021 Recordkeeping Survey
Federal Student Loan Forbearance Is Ending, but Many Employees Aren’t Prepared
Federal Student Loan Forbearance Is Ending, but Many Employees Aren’t Prepared
Satisfying Electronic Disclosure Requirements for SPDs to New Hires
Economic Events

New orders for manufactured durable goods in October decreased $2.8 billion or 1.2% to $236.0 billion, the U.S. Census Bureau announced. This decrease, down following two consecutive monthly increases, followed a 2.2% September increase. Excluding transportation, new orders increased 0.4%. Excluding defense, new orders decreased 0.8%. Transportation equipment, also down following two consecutive monthly increases, drove the decrease, $3.5 billion or 4.3% to $77.1 billion.


In the week ending November 18, the advance figure for seasonally adjusted initial claims for unemployment insurance was 239,000, a decrease of 13,000 from the previous week’s revised level of 252,000, the Labor Department reported. The four-week moving average was 239,750, an increase of 1,250 from the previous week’s revised average of 238,500.


The average interest rate for a 30-year fixed-rate mortgage is 3.92%, down from 3.95% one week ago, according to Freddie Mac. The average interest rate for a 15-year fixed-rate mortgage is 3.32%, up from 3.31%.
Sponsored message from DST Systems
BEST PRACTICES FOR ADDRESSING AUTOMATIC PARTICIPANT ROLLOVERSSaving plan sponsors time and money while reconnecting participants with their retirement savingsRead more >
Market Mirror

Friday, the Dow gained 31.81 points (0.14%) to finish at 23,557.99, the NASDAQ closed 21.80 points (0.32%) higher at 6,889.16, and the S&P 500 increased 5.34 points (0.21%) to 2,602.42. The Russell 2000 was up 2.40 points (0.16%) at 1,519.16, and the Wilshire 5000 climbed 50.53 points (0.19%) to 27,058.83.


The price of the 10-year Treasury note was down 7/32, increasing its yield to 2.343%. The price of the 30-year Treasury bond decreased 16/32, bringing its yield up to 2.764%.


WEEK’S WORTH: For the week ending November 24, the Dow was up 0.89%, the NASDAQ gained 1.57%, and the S&P 500 increased 0.91%. The Russell 2000 climbed 1.76%, and the Wilshire 5000 finished 1.00% higher.
Wells Fargo 401(k) Participant Files Excessive Fee, Self-Dealing Suit
Throughout the complaint, the plaintiff alleges that the plan’s fiduciaries’ lack of a systematic and unbiased review process caused participants to pay an unnecessarily high expense ratio for both Wells Fargo proprietary investments and nonproprietary investments.Read more >
2017 Year-End Deadlines and Tips for Retirement Plans
Kyle Woods, senior associate at Alston & Bird, says in past years there have been significant year-end deadlines for retirement plans, but this year, due to fewer legislative changes that require plan amendments and the end of cycle filing for determination letters, there aren’t really many must-do items for the end of 2017. But, there are a few to note. He and Elizabeth Thomas Dold, principal at Groom Law Group, Chartered, also offer year-end tips for retirement plan sponsors.Read more >
Experts Push for Sponsor Courage When Offering In-Plan Lifetime Income
Drew Carrington, head of institutional defined contribution at Franklin Templeton Institutional, broadly speaking, says plan sponsors should feel encouraged to offer more opportunities for lifetime income planning within their DC plan offering. Instead of waiting for more regulation, Carrington likes to talk about what plan sponsors can do right now with respect to retirement income—and their options are broader than any single investment option. Tim Brown, senior vice president and head of life and income funding solutions with MetLife’s retirement and income solutions group, says most plan sponsors believe the safe harbor needs to be strengthened, but he also points out an important caveat: Insurance carriers have to abide by strict state regulations, and part of the DOL’s guidance in this area with respect to satisfying the fiduciary duty of prudence is to allow plan sponsors to rely on state audits and regulations for judging the appropriateness and strength of annuity providers.Read more >
Small Talk
ON THIS DATE: In 1779, the College of Pennsylvania became the University of Pennsylvania. It was the first legally recognized university in America. In 1910, New York’s Pennsylvania Station opened. In 1934, the U.S. bank robber George “Baby Face” Nelson was killed by FBI agents near Barrington, Illinois. In 1973, the U.S. Senate voted to confirm Gerald R. Ford as vice president after the resignation of Spiro T. Agnew. In 2008, the ocean liner Queen Elizabeth 2 (QE2) was taken out of service after more than 30 years. The ship was launched on September 20, 1967.
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Editorial: Alison Cooke Mintzer


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