Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
November 9th, 2017
Benefits & Administration
Health Benefit Plan Sponsors Looking at New Ways to Cut Costs
As health plan cost growth continues to outpace wage increases and consumer price inflation, plan sponsors have turned to pharmacy management programs as the main strategy to keep annual increases in the single-digits. National Health Practice Leader Ed Kaplan adds, “Rather than simply continuing to shift costs to participants, plan sponsors will look to aggressively drive utilization to high-quality, low-cost providers. Strategies that mitigate risk such as wellness programs can also pay long-term dividends.” Segal says medical plan trends are projected to be slightly higher than 2017 projections. Price inflation—not utilization—is the leading driver of trend. Read more >
Another Multiemployer Plan Approved for Benefits Reductions Under MPRA
In a letter, the Board of Trustees of the International Association of Machinists Motor City Pension Plan was notified that its application to reduce pension benefits under the Multiemployer Pension Reform Act of 2014 (MPRA) meets the requirements for approval. Some industry experts say the process of applying for benefit suspensions is proving more stringent than applicants and industry experts had anticipated. Read more >
MOST READ ARTICLES
1
SECURE Act Passes House, Bringing Calls for Senate Collaboration
2
J.P. Morgan Agrees to Settle Stable Value Funds Suit
3
Individuals, Employers and Government All Play a Part in Retirement Readiness
4
Participant Loans: A Fiduciary Storm Brewing?
5
What to Know About Financial Audits Filed with Form 5500s
Millennials Very Receptive to Investment Advice
Nearly two-thirds, 64%, of Millennials, those between the ages of 25 and 36, say they are very or extremely confident making investment decisions on their own, Schwab Retirement Plan Services found in a survey. But, Millennials have less saved in a 401(k) than older generations, so 64% think they would benefit from financial advice. Read more >
Products, Deals and People
Retirement Clearinghouse Releases Findings From Auto Portability Use
A new report documents the key findings from auto portability’s inaugural market launch with Retirement Clearinghouse. Results from the firm’s product use by one plan sponsor found that upon consolidation, workers’ median plan account balance increased by 46% and the combined future value of their preserved savings was more than $3 million at normal retirement age. Read more >
Sponsored message from AVIVA INVESTORS
What the yield curve says-and doesn’t say-about the economy
The U.S. yield curve has historically been an accurate barometer of the economic outlook, but the recent flattening may not necessarily point to a recession. James McAlevey, senior fixed income manager at Aviva Investors, explains why. Read more >
Market Mirror

Wednesday, the Dow was up 6.13 points (0.03%) at 23,563.36, the NASDAQ climbed 21.34 points (0.325) to 6,789.12, and the S&P 500 increased 3.74 points (0.14%) to 2,594.38. The Russell 2000 gained 2.64 points (0.18%) to finish at 1,481.73, and the Wilshire 5000 closed 37.37 points (0.14%) higher at 26,892.52.

 

The price of the 10-year Treasury note was down 5/32, increasing its yield to 2.333%. The price of the 30-year Treasury bond decreased 8/32, bringing its yield up to 2.791%.

Compliance
Mercer Makes Proposals for Addressing America’s Retirement Security
Creating open multiple employer plans (MEPs), encouraging the use of lifetime income products and removing impediments to employers maintaining defined benefit (DB) plans are just a few of Mercer’s suggestions. Read more >
From the Magazine
Employer Generosity Grows
Employer dollars as a percentage of employee defined contribution (DC) retirement plan savings trended upward between 2009 and 2014, then slightly dipped in 2015, according to data from BrightScope—like PLANSPONSOR, a Strategic Insight company. Read more >
Small Talk

ON THIS DATE: In 1857, the “Atlantic Monthly” first appeared on newsstands and featured the first installment of “The Autocrat of the Breakfast Table” by Oliver Wendell Holmes. In 1906, U.S. President Theodore Roosevelt left for Panama to see the progress on the new canal. It was the first foreign trip by a U.S. president. In 1935, United Mine Workers president John L. Lewis and other labor leaders formed the Committee for Industrial Organization. In 1961, Major Robert White flew an X-15 rocket plane at a world record speed of 4,093 mph. In 1965, the great Northeast blackout occurred as several states and parts of Canada were hit by a series of power failures lasting up to 13 1/2 hours. In 1967, a Saturn V rocket carrying an unmanned Apollo spacecraft blasted off from Cape Kennedy on a successful test flight. In 1982, Sugar Ray Leonard retired from boxing. In 1984, a bronze statue titled “Three Servicemen,” by Frederick Hart, was unveiled at the site of the Vietnam Veterans Memorial in Washington, D.C. In 1989, Communist East Germany opened its borders, allowing its citizens to travel freely to West Germany. In 1997, Barry Sanders (Detroit Lions) became the first player in NFL history to rush for over 1,000 yards in nine straight seasons. In the same game Sanders passed former Dallas Cowboy Tony Dorsett for third place on the all-time rushing list. In 2004, U.S. First Lady Laura Bush officially reopened Pennsylvania Avenue in front of the White House to pedestrians.

SURVEY SAYS: A tax reform bill was introduced by the U.S. House of Representatives last week. This week, I’d like to know, of the provisions affecting retirement plans, which do you think would be MOST beneficial to retirement savers? You may respond to this week’s survey by 6 p.m. Pacific time today. 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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