Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
October 18th, 2018
Benefits & Administration
Findings About 401(k) Participation Signal Opportunity for Education
Recently, Capital One conducted a Spark 401k survey of 1,500 adults who are full-time employees ages 18 and older to gauge why employees are participating in their 401(k) plans and why some are not. Stuart Robertson, president of Capital One Advisors 401k Services, told PLANSPONSOR that access to retirement plans continues to be an issue in the small business market. He said most small businesses think they can’t afford to offer a plan or that they have to provide a matching contribution on employee deferrals. According to Robertson, 86% of employees whose companies offer a plan are satisfied with it, and 79% are confident their contribution levels will support them in retirement. So, why are some employees not participating in their employer’s retirement plan, and what would spur them to do so?Read more >
Learning Lessons From ‘High Influence’ Plans
Sitting down with PLANSPONSOR to offer an inside take on the results of the firm’s “Driving Plan Health” report, Mel Hooker, director of relationship management at Wells Fargo Institutional Retirement and Trust, made some important points about “inertia,” and how this theme impacts the retirement plan industry in pervasive and pernicious ways. As Hooker explained, retirement industry practitioners will almost certainly be familiar with the topic of inertia as it pertains to participants. According to Hooker, the conversation around inertia has been immensely helpful for improving the “choice architecture” that surrounds DC plans, but “Where the conversation has not been as advanced is when we are talking about the ways plan sponsors also have their own amount of inertia to grapple with,” Hooker said.Read more >
TRIVIAL PURSUITS: Which are the most northern, southern, eastern and western U.S. States?
2021 Recordkeeping Survey
TRIVIAL PURSUITS: Meaning and Origin of the Idiom “Watershed Moment?”
Participants Will Need Support to Understand Lifetime Income Projections
DB Plans Retain Cost Advantage Over DC Plans
Products, Deals and People
Wolters Kluwer Streamlines Distribution Process with Tracking Software
Along with other features, the software can automate tasks usually performed manually.Read more >
Economic Events
Privately‐owned housing starts in September were at a seasonally adjusted annual rate of 1,201,000, the Census Bureau reported. This is 5.3% below the revise August estimate of 1,268,000, but is 3.7% above the September 2017 rate of 1,158,000. Single‐family housing starts in September were at a rate of 871,000; this is 0.9% below the revised August figure of 879,000. The September rate for buildings with five units or more was 324,000.
Sponsored message from J.P. Morgan
Help your employees understand their Social Security benefits
Invite your employees to a live event with J.P. Morgan’s Sharon Carson, Retirement Strategist, and Tana Seward, Relationship Manager, to help understand the top things they should know about their Social Security benefits.Read more >
Market Mirror

Wednesday, the Dow closed 91.74 points (0.36%) lower at 25,706.68, the NASDAQ was down 2.79 points (0.04%) at 7,642.70, and the S&P 500 was virtually unchanged at 2,809.21. The Russell 2000 lost 7.23 points (0.45%) to finish at 1,589.60, and the Wilshire 5000 decreased 26.18 points (0.09%) to 29,056.22.


The price of the 10-year Treasury note was down 6/32, increasing its yield to 3.190%. The price of the 30-year Treasury bond decreased 20/32, bringing its yield up to 3.369%.
IRS Identifies Retirement Plan Compliance Strategies for 2019
The agency will give greater scrutiny to retirement plan distributions and 403(b) universal availability rules, among other things.Read more >
Appellate Court Revives Putnam Self-Dealing Suit
In a case alleging disloyalty and imprudence against fiduciaries of Putnam Investment’s 401(k) plan, the 1st U.S. Circuit Court of Appeals ruled, “Finding several errors of law in the district court’s rulings, we vacate the district court’s judgment in part and remand for further proceedings.” The Appellate Court revived a prohibited transaction claim and duty of prudence claims, but left dismissed duty of loyalty claims.Read more >
Small Talk
ON THIS DATE: In 1767, the Mason-Dixon line was agreed upon. It was the boundary between Maryland and Pennsylvania. In 1842, Samuel Finley Breese Morse laid his first telegraph cable. In 1867, the U.S. took formal possession of Alaska from Russia. The land was purchased of a total of $7 million dollars (2 cents per acre). In 1873, the first rules for intercollegiate football were drawn up by representatives from Rutgers, Yale, Columbia and Princeton Universities. In 1892, the first long-distance telephone line between Chicago and New York City was opened. In 1898, the American flag was raised in Puerto Rico one year after the Caribbean nation won its independence from Spain. In 1943, the first broadcast of “Perry Mason” was presented on CBS Radio. In 1967, the American League granted permission for the A’s to move to Oakland. Also, new franchises were awarded to Kansas City and Seattle. In 1968, two black athletes, Tommie Smith and John Carlos, were suspended by the U.S. Olympic Committee for giving a “black power” salute during a ceremony in Mexico City. In 1977, Reggie Jackson tied Babe Ruth’s record for hitting three homeruns in a single World Series game. In 1997, a monument honoring U.S. servicewomen, past and present, was dedicated at Arlington National Cemetery.
SURVEY SAYS: Halloween parties are not my favorite, but I usually get invited to one. This week, I’d like to know, is there a Halloween party on your schedule this year, and does it require dressing in costume? 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


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