Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
November 3rd, 2015
Benefits & Administration
Employers Unprepared for Post-ACA Reform
“Preparing for a post-health care reform era” is a vital benefits objective, say 61% of plan sponsors surveyed in the Guardian Workplace Benefits Study, but just four in 10 feel prepared to meet it. As employers face this myriad of reforms and regulations, 60% admit they need help managing the ACA terrain, with three trends—increased outsourcing, reliance on private exchanges, and consideration of self-insurance—gaining momentum. Read more >
Americans Share Financial Regrets
Although 59% of Americans set a goal to save for retirement in 2015, only 31% are doing so, according to a new survey of 1,000 people with investable assets between $50,000 and $250,000 conducted by Bank of America and Merrill Edge. Thirty-six percent of respondents said they wish they had stuck to a budget in the past five years. While 51% set a goal to pay down debt in 2015, only 38% accomplished this.Read more >
MOST READ ARTICLES
1
2021 Plan Sponsor of the Year
2
How to Effectively Measure Retirement Plan Success
3
2020 Recordkeeping Survey
4
CARES Act Considerations: CRDs, RMDs, Taxes and More
5
Settlement Reached in Insperity 401(k) Excessive Fee, Self-Dealing Suit
PLANSPONSOR Awards
We are now accepting nominations for the 2016 PLANSPONSOR Plan Sponsor of the Year awards. We are looking for plans of all types—pension (private and public), 401(k), 403(b), 457, public DC, etc.—and of all sizes. Nominations close November 4.Read more >
Webcast Event
The retirement market is maturing as transformative trends play out. Join SEI experts John Alshefski and Robert Muse, as well as Strategic Insight’s Bridget Bearden, as they discuss dynamics in the retirement market today and opportunities going forward. The discussion will cover regulatory focus on improving retirement outcomes; product innovation leading to solution-oriented strategies; and growing participant awareness of retirement income needs.Read more >
Economic Events
The U.S. Census Bureau of the Department of Commerce announced that construction spending during September was estimated at a seasonally adjusted annual rate of $1,094.2 billion, 0.6% above the revised August estimate of $1,087.5 billion. The September figure is 14.1% above the September 2014 estimate of $959.2 billion. During the first nine months of this year, construction spending amounted to $786.6 billion, 10.5% above the $711.8 billion for the same period in 2014.
Market Mirror

Stocks posted solid gains Monday, adding to last month’s big advances and pushing the Dow Jones industrial average into positive territory for 2015, according to the Associated Press. The Dow was up 165.22 points (0.94%) at 17,828.76, the NASDAQ gained 73.40 points (1.45%) to finish at 5,127.15, and the S&P 500 increased 24.69 points (1.19%) to 2,104.05. The Russell 2000 climbed 24.23 points (2.09%) to 1,186.09, and the Wilshire 5000 closed 249.29 points (1.15%) higher at 21,897.79.

On the NYSE, 3.2 billion shares changed hands, with advancing issues outnumbering declining issues more than 4 to 1. On the NASDAQ, 2.7 billion shares traded, with a more than 3 to1 lead for advancers.

The price of the 10-year Treasury note was down 7/32, increasing its yield to 2.171%. The price of the 30-year Treasury bond decreased 14/32, bringing its yield up to 2.946%.

Compliance
Lawsuit Questions Custom Target-Date Fund Construction
A participant in retirement plans sponsored by Intel Corporation has filed a lawsuit claiming custom-built investment portfolios within the plan are too heavily invested in imprudent investments. The gravamen of the complaint is that the asset-allocation models adopted by the retirement plans’ investment committee departed dramatically from prevailing standards employed by professional investment managers and plan fiduciaries, and as a result, caused participants to suffer massive losses and excessive fees. However, the lawsuit more subtly hints that what some would call “best practices” in defined contribution retirement plans caused a great number of participants to be invested in these alleged improper investments.Read more >
From the Magazine
A Suggested Compliance Guide
To help sponsors ensure they are in line with best practices, we have compiled a list of suggested review items gathered from conversations across the industry, with advisers, recordkeepers and attorneys, among other experts. This list is by no means exhaustive but intended to be a reference guide. Non-ERISA (Employee Retirement Income Security Act) 403(b) plans may need to adhere to comparable rules specified by state law. The sponsors of those plans should consult with legal counsel to ascertain whether they are complying with applicable laws, but this checklist may also be used as a guide for non-ERISA plans.Read more >
Investing
Q3 Market Drop Socks It to Institutional Investors
In the third quarter, institutional asset owners lost 4.6% at the median, according to Northern Trust Universe data. However, corporate Employee Retirement Income Security Act (ERISA) plans were the relative best performer among plan types. The data shows how asset allocation affected the numbers.Read more >
Small Talk
ON THIS DATE: In 1507, Leonardo DaVinci was commissioned by the husband of Lisa Gherardini to paint her. The work is known as the Mona Lisa. In 1796, John Adams was elected the 2nd U.S. President. In 1911, Chevrolet Motor Car Company was founded by Louis Chevrolet and William C. Durant. In 1973, the U.S. launched the Mariner 10 spacecraft. It became the first spacecraft to reach the planet Mercury. In 1975, “Good Morning America” premiered on ABC-TV. In 1992, Carol Moseley-Braun became the first African-American woman U.S. senator. In 2005, Walt Disney Pictures released “Chicken Little.” It was the first Disney film completely created with computer animation. In 2014, in New York City, One World Trade Center opened for business.
TRIVIAL PURSUITS: The word “brand” typically refers to the proprietary name of a company or product, but that doesn’t make sense in the phrase “brand new.” Ever wondered why we say something is “brand new?”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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