Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
September 20th, 2017
Benefits & Administration
PBGC Premiums Driving DB Plan Sponsors to Fund, De-Risk
Eighty percent of defined benefit (DB) plan sponsors have accelerated funding, largely due to increasing Pension Benefit Guarantee Corporation (PBGC) fees and the prospect of lower corporate taxes, according to results of the Mercer/ CFO Research 2017 Risk Survey, “Adventures in Pension Risk Management.” In addition, nearly 60% of survey respondents intend to terminate their plans within the next ten years, and more than eight in ten respondents say they either have a “dynamic de-risking strategy in place” or “are currently considering one.”Read more >
Products, Deals and People
Who’s Working for You?: ARA
In a series of articles, PLANSPONSOR is profiling industry groups that work for retirement and health plan sponsors to protect them from onerous burdens and help them with plan design and administration. In this article, we profile the American Retirement Association (ARA).Read more >
Lincoln Retirement Plan App Available on Apple Watch
Participants can check their account balances and view their retirement income projection, as well as see their asset allocation and three most recent transactions on the watch.Read more >
MassMutual Launches Tool to Gauge DB Plan Health
As part of the analysis of pension investments, the PensionSmart Analysis tool can examine different investment “glide path” options to help sponsors achieve specific goals related to funding and liability matching.Read more >
MOST READ ARTICLES
1
IRS Announces 2020 Contribution and Benefit Limits
2
Maximum Benefit and Contribution Limits Table 2020
3
IRS Proposes Update to Mortality Tables Used to Calculate RMDs
4
Employees Are Making Each Other Sick
5
Congressional Leaders Want SECURE Act Passage in 2019
FutureFuel.io Aims to Bring Student Loan Refinancing to the Mobile Age
The firm has expanded its platform and initiated new partnerships to help employers easily roll out student loan refinancing as an employee benefit.Read more >
Economic Events

Privately-owned housing starts in August were at a seasonally adjusted annual rate of 1,180,000, the Census Bureau reported. This is 0.8% below the revised July estimate of 1,190,000, but is 1.4% above the August 2016 rate of 1,164,000. Single-family housing starts in August were at a rate of 851,000; this is 1.6% above the revised July figure of 838,000. The August rate for units in buildings with five units or more was 323,000.

Sponsored message from Milliman
Imagine a retirement plan with predictable contributions and lifelong income. Sound impossible? We’re actuaries – we’ll show you the math. Click to watch our video.Read more >
Market Mirror

Tuesday, the Dow closed 39.45 points (0.18%) higher at 22,370.80, the NASDAQ increased 6.68 points (0.10%) to 6,461.32, and the S&P 500 was up 2.78 points (0.11%) at 2,506.65. The Russell 2000 was virtually unchanged at 1,440.40, and the Wilshire 5000 gained 60.95 points (0.23%) to finish at 26,023.23.

 

The price of the 10-year Treasury note was down 3/32, increasing its yield to 2.242%. The price of the 30-year Treasury bond decreased 11/32, bringing its yield up to 2.816%.

Compliance
Voya Sued for Charging Excessive Fees to Small Retirement Plan
A participant in the Cornerstone Pediatric Profit Sharing Plan has filed suit against Voya Financial and its subsidiary Voya Retirement Insurance and Annuity Company for violating the Employee Retirement Income Security Act (ERISA) by the way it charged fees. The lawsuit alleges that asset-based fees led to the plan paying $1,819 per participant for recordkeeping services in 2015.Read more >
Plaintiffs Target DST Systems and Ruane Advisory for Fiduciary Failures
According to plaintiffs, Ruane’s flagship fund and a fund in which DST System’s profit sharing plan invested, the Sequoia Fund, contained more than $25 billion in assets until the firm “engaged in a misguided and reckless investment strategy.”Read more >
PBGC Proposes Changes to Form 5500 Reporting by DB Plans
The agency is proposing two modifications for multiemployer plans and one modification for single-employer plans.Read more >
Retirement Tax Reform Discussion with Senior Senate Staffer
“In terms of the legislative agenda going forward, there is definitely a discussion of a pivot to tax reform,” said Elisabeth Bell, tax counsel for Senator Ben Cardin; she also warned the potential for health care reform is far from settled.Read more >
Ask the Experts
RMDs and Rehires
“Let’s say I rehire someone who previously worked here, and had previously commenced required minimum distributions since he/she was over 70 ½. Can he/she cease such distributions upon rehire (assuming this is not a 403(b) plan where required distributions might be made from other plans)?”Read more >
Small Talk

ON THIS DATE: In 1881, Chester A. Arthur became the 21st president of the U.S. President James A. Garfield had died the day before. In 1946, the first Cannes Film Festival premiered. The original premier was delayed in 1939 due to World War II. In 1963, U.S. President John F. Kennedy proposed a joint U.S.-Soviet expedition to the moon in a speech to the U.N. General Assembly. In 1984, “The Cosby Show” premiered on NBC-TV. In 1995, AT&T announced that it would be splitting into three companies. The three companies were AT&T, Lucent Technologies, and NCR Corp. In 1995, the U.S. House of Representatives voted to drop the national speed limit. This allowed the states to decide their own speed limits.

 

 

WEDNESDAY WISDOM: “Trust your hunches. They’re usually based on facts filed away just below the conscious level.”—Joyce Brothers, psychologist and TV personality

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

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