Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
October 1st, 2014
Benefit Briefs
Workers in Generation Y want advice on budgeting, saving and how to manage student loan debt, says TIAA-CREF, but they aren’t necessarily eager for professional advice. A new TIAA-CREF survey finds Gen Y relies predominately on personal networks for financial advice, with adults ages 18 to 34 being more likely than the general population to involve their parents (47% vs. 19%), extended family (22% vs. 14%) and other trusted adults (31% vs. 21%) in their search for advice. Thirty-seven percent also involve a spouse or partner for help with their finances.Read more >
Employers Look to Enhance 401(k) Investments
A new study finds many U.S. employers are replacing single, standalone investment options with multi-manager, “white-labeled” choices that can be easier for participants to use and understand. According to the Towers Watson 2014 Defined Contribution (DC) Survey, many plan sponsors are also implementing custom target-date fund (TDF) solutions and outsourcing some or all of their daily 401(k) plan oversight.Read more >
Buyer's Market
The Retirement Advantage Inc. (TRA) has introduced a series of plan design solutions aimed at helping employers in various industries to boost their employees’ retirement readiness. TRA says the new plan designs are tailored specifically for the following industries: physicians and health care; engineering, computer services and technical consulting; law offices; accounting; financial services; real estate; and manufacturing.Read more >
LPL Adds Financial Wellness Content to Platform
LPL Financial LLC is expanding its Worksite Financial Solutions platform to include workshops and webcasts developed and delivered by Financial Finesse’s team of financial planners. The new Financial Finesse workshops and webcasts are highly interactive and focus on engaging participants through case studies, competitions and real-time calculations that show how financial decisions made today may impact an employee’s financial health over time.Read more >
TIAA-CREF launched the TIAA-CREF Lifecycle 2060 and Lifecycle Index 2060 Funds, as well as the TIAA-CREF Emerging Markets Debt Fund. The Lifecycle 2060 and Lifecycle Index 2060 Funds are the latest additions to TIAA-CREF’s Lifecycle Funds series and Lifecycle Index Funds series. Both Lifecycle series include 11 funds offered in five-year target-date increments, as well as a Retirement Income Fund. The new funds will follow the same glide path as other funds in their respective series.Read more >
Industry Voices
Industry Voice: Are Your Employees Ready for Retirement?
Helping employees plan for retirement requires more than just having a 401(k) ticking over in a portfolio or moving investments around chasing a higher rate of return. Rather, it should be about the retirement readiness for both participants and their employers. Employers who help their employees with retirement readiness can potentially help create a more efficient company retirement program, save time and money with plan design, and increase employee engagement and loyalty. Plus, there may be additional long-term cost savings on employee benefit programs such as health care by having employees retire on time instead of prolonging their length of employment.Read more >
Economic Events
The Conference Board Consumer Confidence Index, which had increased in August, declined in September. The Index now stands at 86.0 (1985=100), down from 93.4 in August. The Present Situation Index decreased to 89.4 from 93.9, while the Expectations Index dropped to 83.7 from 93.1 in August.
Market Mirror
Tuesday, the Dow closed 28.32 points (0.17%) lower at 17,042.90, the NASDAQ was down 12.46 points (0.28%) at 4,493.39, and the S&P 500 slipped 5.51 points (0.28%) to 1,972.29. The Russell 2000 fell 16.23 points (1.45%) to 1,101.68, and the Wilshire 5000 lost 81.55 points (0.39%) to finish at 20,760.46.   On the NYSE, 3.2 billion shares traded, with 1.7 declining issues for every advancing issue. On the NASDAQ, 2.8 billion shares changed hands, with more than 2 to 1 lead for decliners.   The price of the 10-year Treasury note was down 6/32, bringing its yield up to 2.502%. The price of the 30-year Treasury bond decreased 27/32, increasing its yield to 3.210%.
Financial Sense
Retirement Plans Eye PIMCO Total Return with Caution
Outsized redemptions from PIMCO’s $221.6 billion flagship fund are a concern for retirement plan advisers, sponsors and participants. Any immediate redemptions following Friday’s sudden departure of the fund’s portfolio manager, Bill Gross, will be driven by individual participants, Jeff Holt, an analyst with Morningstar, tells PLANSPONSOR. The next, possibly more critical pressure on the fund’s assets would be retirement plan sponsors removing the PIMCO Total Return fund from their investment lineups, he says.Read more >
Small Talk
Some Workplace Buzzwords Continue to Annoy
Today’s workplace is awash with buzzwords and clichés, but certain terms and phrases are more common—and annoying—than others, according to an Accountemps survey of human resources (HR) managers. Some of the most annoying or overused phrases or buzzwords in the workplace cited by managers included out-of-pocket, deep dive, forward-thinking, dynamic, let me get back to you, pick your brain, employee engagement, and LOL. Managers also seem uncomfortable with employees’ or coworkers’ venting about their workloads and salaries, and some words or phrases mentioned have been cited in previous surveys by Accountemps.Read more >
ON THIS DATE: In 1890, an act of Congress created Yosemite National Park. In 1908, the first production Model T Ford was completed at the company’s Piquette Avenue plant in Detroit. In 1924, future President James Earl Carter was born in Plains, Georgia. Carter, who preferred to be called “Jimmy,” was the son of a peanut farmer and was the first president to be born in a hospital. In 1946, 12 high-ranking Nazis were sentenced to death by the International War Crimes Tribunal in Nuremberg. In 1961, New York Yankee Roger Maris hit his 61st home run of the season, beating Babe Ruth’s major league record of 60. In 1962, Johnny Carson took over from Jack Paar as host of the late-night talk program “The Tonight Show.” Carson went on to host “The Tonight Show Starring Johnny Carson” for three decades. In 1971, Walt Disney World opened in Orlando, Florida. In 2013, espionage and military thriller author Tom Clancy, whose books include “The Hunt for Red October” and “Patriot Games,” died in Baltimore at age 66 following a brief illness.
WEDNESDAY WISDOM: “Nothing is impossible, the word itself says ‘I’m possible!’” —Audrey Hepburn
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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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