Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
October 30th, 2017
Benefits & Administration
Continued Analysis Shows Consistent 401(k) Participation Increases Savings
An annual update of a longitudinal analysis of 401(k) plan participants drawn from the Employee Benefit Research Institute (EBRI)/Investment Company Institute (ICI) 401(k) database continues to show consistency is key in building retirement assets. The average 401(k) plan account balance for consistent participants rose each year from 2010 through year-end 2015. Overall, the average account balance increased at a compound annual average growth rate of 13.9% from 2010 to 2015, to $143,436 at year-end 2015. Read more >
There Is Value in Ongoing Benefits Education
Most employers inform their workforce about their health, retirement and financial wellness benefits once a year—at open enrollment, Benz Communications maintains in its report, “The Value of Investing in Benefits Communication.” The problem with that is people encounter personal, health or financial crises at unexpected times outside that narrow window. The paper shares tips for communicating to employees and the value of doing so. Read more >
Returns Boost Pension Funded Ratios in Q3 2017
Funded status of the typical corporate pension plan increased by 1% or 2% over the quarter, depending on the model tracked. Read more >
MOST READ ARTICLES
1
AT&T Sued Over Calculation of Early Retirement Benefits
2
Congressional Leaders Want SECURE Act Passage in 2019
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Social Security Administration Announced COLA for 2020
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New Lawsuit Highlights Importance of Cybersecurity for Retirement Plans
5
IRS Releases 2019-2020 Priority Guidance Plan
PLANSPONSOR Research
2017 PLANSPONSOR 403(b)/457 Buyer’s Guide
The 403(b) Buyer’s Guide shows the providers who service this market, what they focus on in terms of market segment, and the services they provide to 403(b) plan sponsors. Read more >
Products, Deals and People
Retirement Industry People Moves
Mercer hires Principal of Client Management; AndCo employs retirement plan consultant to support fiduciary and plan governance; Consultant named ASPPA president; and more. 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 >
Economic Events

THE ECONOMIC WEEK AHEAD: Tomorrow, the Conference Board will reveal its Consumer Confidence Index for October. Wednesday, the Census Bureau will report about construction spending in September. Thursday, the Labor Department will issue its initial claims report. Friday, the Bureau of Labor Statistics will reveal the unemployment rate for October, and the Census Bureau will report about factory orders for September.

Market Mirror

Friday, the Dow was up 33.33 points (0.14%) at 23,434.19, the NASDAQ climbed 144.49 points (2.20%) to 6.701.26, and the S&P 500 closed 20.67 points (0.81%) higher at 2,581.07. The Russell 2000 increased 10.86 points (0.73%) to 1,508.31, and the Wilshire 5000 gained 218.72 points (0.82%) to finish at 26,817.34.

 

The price of the 10-year Treasury note increased 13/32, bringing its yield down to 2.419%. The price of the 30-year Treasury bond climbed 27/32, decreasing its yield to 2.928%.

 

WEEK’S WORTH: For the week ending October 27, 2017, the Dow finished 0.45% higher, the NASDAQ gained 1.09%, and the S&P 500 increased 0.23%. The Russell 2000 was down 0.06%, and the Wilshire 5000 was up 0.18%.

Compliance
Treasury Calls for the Creation of an Annuity Oversight Bureau
The Treasury Department believes that if an expert bureau were created to assess the viability of annuity providers, retirement plan sponsors would be more inclined to offer in-plan guaranteed lifetime income options. Read more >
Industry Voices
Should Foreign Nationals Participate in Your Company’s U.S.-Based 401(k)?
Andrew S. Zito, executive vice president, Retirement Plan Services of the LAMCO Advisory Services, discusses the considerations for helping foreign nationals decide whether to participate in a company’s U.S.-based 401(k). Read more >
Small Talk

ON THIS DATE: In 1735, John Adams, the second President of the United States, was born in Braintree, Massachusets. In 1831, escaped slave Nat Turner was apprehended in Southampton County, Virginia, several weeks after leading the bloodiest slave uprising in American history. In 1875, the constitution of Missouri was ratified by popular vote. In 1894, the time clock was patented by Daniel M. Cooper of Rochester, New York. In 1938, Orson Welles’ “The War of the Worlds” aired on CBS radio. The belief that the realistic radio dramatization was a live news event about a Martian invasion caused panic among listeners. In 1943, in Moscow, a declaration was signed by the governments of the Soviet Union, the United Kingdom, the United States and China called for an early establishment of an international organization to maintain peace and security. In 1953, General George C. Marshall was awarded the Nobel Peace Prize. In 1972, U.S. President Richard Nixon approved legislation to increase Social Security spending by $5.3 billion. In 1993, Martin Fettman, America’s first veterinarian in space, performed the world’s first animal dissections in space, while aboard the space shuttle Columbia. In 2001, Michael Jordan returned to the NBA with the Washington Wizards after a 3 1/2 year retirement. The Wizards lost 93-91 to the New York Knicks.

SURVEY SAYS RESPONSES: Last week, I asked NewsDash readers, “Do you have plans to dress up in costume for Halloween this year?” I also asked them to share the most creative costumes they’ve seen or come up with. Two-thirds (66.7%) of responding readers indicated they have no plans to dress up for Halloween this year. Nineteen percent each said they would dress up for answering the door for trick-or-treaters and for trick-or-treating with their children. Only about one in 20 (4.8%) will be dressing up for Halloween at work, and 9.5% said they would for a social gathering. Among the submissions of creative costumes, two I especially liked were: “Someone just had a label on them that said ‘98.4 degrees.’ They were a ‘Temp.’” and “I painted a box to look like a night stand and went as…a one night stand.” In verbatim comments, several just pointed out the fun of the holiday, but notably some said the fun part included children. A couple mentioned a simple costume or outfit just to commemorate the day. Editor’s Choice goes to the reader who said: “Unfairly we hate dressing up but we make our dog wear a costume. This year our Golden Retriever will wear the lion’s mane similar to the commercial. In past years he has been a wide retriever with his football jersey.” A big thank you 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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