Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
October 4th, 2017
Benefits & Administration
Latinos Seeking Retirement Planning Assistance from Employers
More than half (71%) of middle-income Hispanics feel they are behind on preparing for retirement as opposed to 63% of the general population, according to a recent study commissioned by Massachusetts Mutual Life Insurance Company. The survey also found that 63% of Latinos wish their employers would provide a greater degree of education on saving for retirement. The Mass Mutual Hispanic Middle America Financial Security Study also shed some light on the types of financial services Hispanics are seeking from their employers. About 79% want financial planning services, 70% want Social Security counseling. Read more >
Ask the Experts
403(b) Contributions for No-Compensation Clergy
“I work for a denominational church plan sponsor who maintains a 403(b) plan. We have a clergy member who has NOT taken a vow of poverty, but who has another job for which he receives a salary, in addition to being a pastor at one of our churches. Because he has another source of income, he has agreed with his church not to take a salary for his work there. However, his church would like to make a retirement plan contribution on his behalf to the denominational 403(b) plan, even though he has no salary. Can the church make such an employer contribution to the 403(b) plan? If so, what is the maximum that the church may contribute on his behalf? He is employed directly by the church rather than being a self-employed minister, if that makes a difference.” Read more >
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Products, Deals and People
Stadion TDF Launch Offers Multiple Glide Paths
The solution offers three levels of risk within the same TDF family, leveraging exchange-traded funds wrapped within collective investment trusts to keep costs as low as possible. Read more >
HealthEquity and Ubiquity Announce HSA Partnership
Ubiquity Retirement + Savings announced a partnership with HealthEquity, Inc., a national provider of health savings accounts (HSA) as a non-bank custodian, meant to encourage individuals to save toward their future while also saving for health care expenses. According to the firms, the integration of Ubiquity Retirement + Savings and HealthEquity services will encourage employers and their employees to invest in both HSAs and 401(k)s. The end goal is to help participants maximize tax benefits, contribution rates, investment returns and overall savings. Read more >
Sponsored message from Vanguard
Target-Date Funds: Built to Weather Volatility Uncertainty is often the cause of knee-jerk reactions by investors. Many DC plan sponsors select target-date funds (TDFs) as their plan’s qualified default investment alternative to curb emotional investing. Read more >
Market Mirror

Tuesday, the Dow climbed 84.07 points (0.37%) to 22,641.67, the NASDAQ closed 15.00 points (0.23%) higher at 6,531.71, and the S&P 500 increased 5.46 points (0.22%) to 2,534.58. The Russell 2000 was up 2.49 points (0.16%) at 1,511.96, and the Wilshire 5000 gained 68.96 points (0.26%) to finish at 26,425.21.

The price of the 10-year Treasury note was up 6/32, decreasing its yield to 2.322%. The price of the 30-year Treasury bond increased 10/32, bringing its yield down to 2.860%.

Compliance
TDF Underlying Funds and Revenue-Sharing Disclosure Claims Dismissed in Lawsuit
A federal court judge has dismissed claims against Verizon Communications retirement plan fiduciaries and Fidelity Investments over underlying investments in target-date funds (TDFs) and a lack of disclosures about revenue sharing in participant fee statements. The participant only prevailed in moving forward a claim that Verizon allowed an imprudent investment option to continue to be offered in its retirement plans. Read more >
PBGC Issues Guidance About Active Participant Reduction Reportable Event
A technical update provides an alternative method for determining whether reporting an attrition event to the Pension Benefit Guaranty Corporation (PBGC) is required. Read more >
MPRA’s Reality
The Multiemployer Pension Reform Act (MPRA) requires the Treasury to review pension plan’s applications for benefit suspensions, but the process is different than plan sponsor applicants and industry experts expected. Michael Scott, executive director of the National Coordinating Committee for Multiemployer Plans (NCCMP) says technical corrections to MRPA are needed to ensure it’s implemented as intended. Read more >
Barry’s Pickings Online
Stakes for Retirement Savings in Tax Reform
Michael Barry, president of the Plan Advisory Services Group, discusses what is at stake for retirement savings in tax reform. Read more >
Small Talk
It’s that time of year again; the Ig Nobel prizes have been awarded. Among 2017 Ig Nobel prize winners were Marc-Antoine Fardin, who won the Physics Prize, for using fluid dynamics to probe the question “Can a Cat Be Both a Solid and a Liquid?” And, be honest, haven’t you always wondered why older men have big ears? Wonder no more, because James Heathcote won the Anatomy Prize for his medical research study about this issue. Read more >

ON THIS DATE: In 1535, the first complete English translation of the Bible was printed in Zurich, Switzerland. In 1648, the first volunteer fire department was established in New York by Peter Stuyvesant. In 1777, at Germantown, Pennsylvania, Patriot forces and British forces both suffer heavy losses in battle. The battle was seen as British victory, which actually served as a moral boost to the Americans. In 1893, the first professional football contract was signed by Grant Dibert for the Pittsburgh AC. In 1895, the first U.S. Open golf tournament took place in Newport, Rhode Island. Horace Rawlins, 19 years old, won the tournament. In 1931, the comic strip “Dick Tracy” made its debut in the Detroit Daily Mirror. The strip was created by Chester Gould. In 1933, “Esquire” magazine was published for the first time. In 1957, “Leave it to Beaver” debuted on CBS-TV. In 1957, the Soviet Union launched Sputnik I into orbit around the Earth. It was the first manmade satellite to enter space. In 1958, British Overseas Airways Corporation became the first jetliner to offer trans-Atlantic service to passengers with flights between London, England and New York. In 1976, Barbara Walters joined Harry Reasoner at the anchor desk of the “ABC Evening News” for the first time. In 2001, NATO granted the United States open access to their airfields and seaports and agreed to deploy ships and early-warning radar planes in the war on terrorism.

 

 

WEDNESDAY WISDOM: “This is the precept by which I have lived: Prepare for the worst; expect the best; and take what comes.”—Hannah Arendt, political theorist

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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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