Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
October 23rd, 2017
2017 DC Survey
2017 Defined Contribution (DC) Survey Extended Through November 3!
There is still time to join thousands of plan sponsors who have responded to our annual survey of defined contribution plan design trends and recordkeeper satisfaction. Don’t miss this opportunity to benchmark your plan or nominate your recordkeeper/account service team for our annual Best in Class awards. Results from the survey will be shared with all respondents after the survey close and will be published in PLANSPONSOR magazine throughout 2018, so please consider responding today! Read more >
Webcast Event
Are you sure your retirement plan investments aren’t charging your employees too much? Did you know that mutual funds aren’t the only investments out there to choose from when building an investment lineup? Join Steven Glasgow, a nationally-recognized retirement plan advisor with Avondale Partners LLC, tomorrow as he discusses which investment vehicles his clients have been using to mitigate these risks and the successes they’ve had doing so. The call will include a look into Collective Investment Trusts (CITs), investments that have been around for years but are just now being made available to all plans, regardless of size. Read more >
MOST READ ARTICLES
1
AT&T Sued Over Calculation of Early Retirement Benefits
2
Congressional Leaders Want SECURE Act Passage in 2019
3
New Lawsuit Highlights Importance of Cybersecurity for Retirement Plans
4
IRS Releases 2019-2020 Priority Guidance Plan
5
DC Plans 3.0 Will Really be Tailored to Individual Situations
Benefits & Administration
What Is a True-Up Match?
Plan sponsors, advisers and providers are always recommending defined contribution (DC) plan participants defer enough of their salaries into the plan to receive the full employer match contribution. In order to make sure participants are maximizing their retirement savings, plan sponsors may offer a true-up match. Read more >
Slight Increase in Mortality Gives Pension Plans a Break
With life expectancies declining slightly, pension plan obligations are reduced between 0.7% and 1.0%, the Society of Actuaries says. Read more >
Sponsored message from BlackRock
Fixed Income: How Active Do You Want to Go?
The Fed’s policy of normalization sounds reassuring. But it may shift uncertainty from short-term rates to further along the yield curve. See what this means for today’s fixed income market. Read more >
Products, Deals and People
Retirement Industry People Moves
Willis Towers Watson appoints head of Delegated Investment Solutions; Director of Fund Administration joins Triloma; Mercer hires two relationship managers in Milwaukee office; and more. Read more >
Economic Events

After three straight monthly declines, existing-home sales slightly reversed course in September, but ongoing supply shortages and recent hurricanes muted overall activity and caused sales to fall back on an annual basis, according to the National Association of Realtors. Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, rose 0.7% to a seasonally adjusted annual rate of 5.39 million in September from 5.35 million in August. Last month’s sales pace is 1.5% below a year ago and is the second slowest over the past year (behind August).

 

THE ECONOMIC WEEK AHEAD: Wednesday, the Census Bureau will report about durable goods orders and new home sales for September. Thursday, the Labor Department will issue its initial claims report.

Market Mirror

Friday, the Dow climbed 165.59 points (0.71%) to 23,328.63, the NASDAQ closed 23.99 points (0.36%) higher at 6,629.05, and the S&P 500 increased 13.11 points (0.51%) to 2,575.21. The Russell 2000 was up 7.20 points (0.48%) at 1,509.24, and the Wilshire 5000 gained 129.84 points (0.49%) to finish at 26,769.73.

 

The price of the 10-year Treasury note decreased 17/32, bringing its yield up to 2.381%. The price of the 30-year Treasury bond fell 1 5/32, increasing its yield to 2.896%.

 

WEEK’S WORTH: For the week ending October 30, the Dow climbed 2.00%, the NASDAQ was up 0.35%, and the S&P 500 gained 0.86%. The Russell 2000 increased 0.44%, and the Wilshire 5000 finished 0.72% higher.

Compliance
IRS Issues Memorandum on Plan Loan Cure Periods
The Internal Revenue Service (IRS) has issued a memorandum on defined contribution (DC) plan loan cure periods for participants who have failed to make installment payments. On a regular basis the IRS notes that loans, as long as they are not for the purchase of a primary home, can be repaid in five years and that payments are due at the end of the month for the repayment term of the loan. But should a participant miss a payment, according to the memorandum, they can take care of that payment by the last day of the calendar quarter following the previous quarter in which the payment was due, the IRS says. They can also refinance a loan—but it will still be due on the original due date. Read more >
From the Magazine
Minutes Essential
Meeting minutes are critically important. Attorneys from Drinker Biddle and Reath LLP discuss the do’s and don’ts of taking them and focus on the procedural issues associated with taking minutes. Read more >
Small Talk

ON THIS DATE: In 1864, during the U.S. Civil War, Union forces led by General Samuel R. Curtis defeated the Confederate forces in Missouri that were under General Stirling Price. In 1915, approximately 25,000 women demanded the right to vote with a march in New York City. In 1929, the Dow Jones Industrial Average plunged starting the stock-market crash that began the Great Depression. In 1946, the United Nations General Assembly convened in New York for the first time. In 1956, NBC broadcasted the first videotape recording. The tape of Jonathan Winters was seen coast to coast in the U.S. In 1958, Russian poet and novelist Boris Pasternak was awarded the Nobel Prize for literature but was forced to refuse the honor due to negative Soviet reaction. Pasternak won the award for writing “Dr. Zhivago.” In 1973, U.S. President Richard M. Nixon agreed to turn over the subpoenaed tapes concerning the Watergate affair. In 1995, Russian President Boris Yeltsin and U.S. President Bill Clinton agreed to a joint peacekeeping effort in the war-torn Bosnia. In 2001, NASA’s Mars Odyssey spacecraft began orbiting Mars. In 2010, it became the longest-operating spacecraft ever sent to Mars.

SURVEY SAYS RESPONSES: Last week, I asked NewsDash readers, which method of travel they think would be the most enjoyable way to travel across the country, and how long would they like their trip to be to give time to stop at desired destinations. Car was the No. 1 method of travel responding readers think would be the most enjoyable way to travel across the country (41.2%), followed by RV or camper (30%). By far, more than one month was the length of time respondents would like their trip to be to give time to stop at desired destinations (40.7%); one month came in a distant second (24.7%). In verbatim comments, bicycle was added to the list of most enjoyable ways to travel. Some readers have already traveled across the country, and others say it is on their “bucket list.” U.S. parks were common recommended destinations. Editor’s Choice goes to the reader who said: “This country has many, many wonderful sights to see. It would be nice to have more than a month to visit the various parts of the country and learn more about the local attractions. If/when retirement ever arrives, traveling in a camper or RV throughout the country is one of those ‘bucket list’ items that I would like to check off.” Thanks to all who participated in the survey! Read more >
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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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