Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
September 1st, 2015
Benefits & Administration
Pre-Retirees Are Pro-Automatic Retirement Savings
Pre-retirees between the ages of 50 and 62 say they are very comfortable with automatic deposits to their 401(k), mortgage or permanent life insurance, a New York Life survey found. Nearly two-thirds (64%) say that automatic saving gives them more confidence heading into retirement than other forms of savings. However, nearly half (46%) say it is difficult for them to save anything above what is being automatically routed to their 401(k) due to the financial demands they are facing. What advice do they give younger generations?Read more >
Products, Deals & People
The Plan Sponsor Council of America (PSCA) has prepared resources retirement plan sponsors may use for a plan participant educational campaign corresponding with 401(k)/403(b) Day.Read more >
MOST READ ARTICLES
Compliance
New Financial Audit Rule Increases Requirements for Plan Sponsors
Research
2021 Recordkeeping Survey

2021 Plan Sponsor of the Year
Market Mirror

Major U.S. stock indices closed lower yesterday as they ended what the Associated Press reports as their worst month in three years. The Dow decreased 114.98 points (0.69%) to 16,528.03, the NASDAQ fell 51.82 points (1.07%) to 4,776.51, and the S&P 500 lost 16.60 points (0.83%) to finish at 1,972.27. The Russell 2000 was down 3.53 points (0.30%) at 1,159.38, and the Wilshire 5000 closed 165.35 points (0.79%) lower at 20,802.96.                       

On the NYSE, 3.2 billion shares traded, with 1.3 declining issues for every advancing issue. On the NASDAQ, 2.7 billion shares changed hands, with an even split between advancers and decliners.

The price of the 10-year Treasury note was down 10/32, increasing its yield to 2.216%. The price of the 30-year Treasury bond decreased 31/32, bringing its yield up to 2.961%.

Compliance
IRS Issues Funding Rule Guidelines for Certain Pensions
The Internal Revenue Service (IRS) has issued guidance about certain issues relating to the Cooperative and Small Employer Charity Pension Flexibility Act (CSEC Act), which was enacted April 7, 2014. The CSEC Act specifies minimum funding requirements and related rules that apply with respect to certain defined benefit pension plans maintained by groups of cooperatives and related entities and groups of charities. How do these rules differ from Pension Protection Act (PPA) rules?Read more >
DOL Seeks $1.6M in Losses for Profit Sharing Plan
A health care company filed no annual reports, did not perform valuations and took more than $1.6 million in improper distributions in violation of the Employee Retirement Income Security Act (ERISA), the Department of Labor (DOL) alleges.Read more >
From the Magazine
Avoiding Mismatched Matches
What can plan sponsors do to avoid miscalculating employer match contributions to their defined contribution (DC) plans?Read more >
Investing
Share Class Offerings Shift with Fiduciary Focus
A focus on fairness and fiduciary fitness is driving many investment product providers to implement R6 share classes and other institutional offerings with zero revenue sharing. Overall, according to the August issue of The Cerulli Edge, nearly 60% of asset managers will make changes to share class offerings heading into 2016.  In this group, one-quarter plans to add share classes, “primarily cited as R6 or some zero revenue share class,” and a similar number will move away from share classes that generate revenue through commissions or sales fees. What happened to the expected increase in use of collective investment trusts?Read more >
Small Talk

ON THIS DATE: In 1799, The Bank of Manhattan Company opened in New York City. It was the forerunner of Chase Manhattan. In 1807, former U.S. Vice President Aaron Burr was found innocent of treason. In 1878, Emma M. Nutt became the first female telephone operator in the U.S., working for the Telephone Dispatch Company of Boston. In 1922, the first daily news program on radio was “The Radio Digest,” on WBAY radio in New York City. In 1939, World War II began when Germany invaded Poland. In 1970, the last episode of “I Dream of Jeannie” aired on NBC-TV. The show premiered on September 18, 1965. In 1972, America’s Bobby Fischer beat Russia’s Boris Spassky to become world chess champion. In 1979, the U.S. Pioneer 11 became the first spacecraft to visit Saturn. In 1985, the Titanic was found by Dr. Robert Ballard and Jean Louis Michel in a joint U.S. and French expedition. The wreck site is located 963 miles northeast of New York and 453 miles southeast of the Newfoundland coast. In 1998, the Intermodal Surface Transportation Efficiency Act of 1991, which required front air bags on both sides for all cars and light trucks sold in the United States, went into effect.                                   

 

TUESDAY TRIVIA: The word “checkmate” in Chess comes from the Persian phrase “shah mat,” which means, “The King is dead.”

TRIVIAL PURSUITS: How long was the longest chess game in history?Read more >
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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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