Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
September 21st, 2015
Benefits & Administration
Are Americans Over-Confident About Retirement?
Measuring and comparing retirement confidence around the world yields some interesting results. State Street Global Advisors (SSGA) certainly found this in its third annual Global Retirement Survey, which delved into retirement contribution and participation levels in the U.S., U.K., Ireland and Australia. While the U.K. showed the greatest rise in percentage points from the previous survey, from 24% to 43%, in confidence levels, the U.S. had the highest level overall (51%). But that level of confidence does not necessarily reflect whether Americans are on track for a successful retirement, researchers warn.Read more >
Student loan debt is putting Millennials in a bind when it comes to retirement savings. A survey conducted in April by the Investor Protection Institute (IPI) found half of Millennials (49%) have college-related debt, including 20% with debt of $1,000 to $20,000, 16% with $20,000 to $50,000 and 13% with $50,000 or more. Just 38% of the respondents are already saving and investing for retirement, but others cited hindrances caused by student loans.Read more >
TRIVIAL PURSUITS: What do the M’s stand for in M&Ms?
2022 Recordkeeping Survey
TRIVIAL PURSUITS: Meaning and Origin of the Idiom “Watershed Moment?”
Maximum Benefit and Contribution Limits Table 2023
TRIVIAL PURSUITS: How Many States Are in More Than One Time Zone?
2015 PLANSPONSOR TDF Buyer's Guide
Two significant themes can be inferred from this year’s collection of data for the 2015 PLANSPONSOR Target-Date Fund (TDF) Buyer’s Guide: 1) Asset managers are deeply committed to target-date fund solutions, as indicated by an exceptionally high survey participation rate, and 2) in their evolution, target-date fund solutions have moved far past any predicted 2.0 stage.Read more >
Products, Deals & People
Enhanced Retirement Solutions, a retirement plan consulting firm, will now offer third-party administration (TPA) services. This will include plan design, documentation, compliance support and administration.Read more >
Paul Neveu has been promoted to president of BPAS plan administration and recordkeeping services. He will lead all the firm’s defined contribution and VEBA services, including sales, marketing, daily administration, programming and trust operations, plan consulting, implementation, operations, and related areas, as well as the BPAS Fiduciary Services division.Read more >
Sponsored message from T. Rowe Price
Visit the Sponsored Retirement Resource Center to catch up on topics to be discussed at the upcoming 2015 PLANADVISER National Conference. Read more >
Economic Events
THE ECONOMIC WEEK AHEAD: Today, the National Association of Realtors will report about existing home sales for August. Thursday, the Labor Department will release its initial claims report, and the Census Bureau will report about durable goods orders for August and new home sales for August.
Market Mirror

U.S. stock indices fell Friday due to investors’ concern about the outlook for global growth after the Federal Reserve decided to hold off raising interest rates, according to the Associated Press. The Dow fell 289.95 points (1.74%) to 16,384.79, the NASDAQ was down 66.72 points (1.36%) at 4,827.23, and the S&P 500 closed 34.21 points (1.72%) lower at 1,955.99. The Russell 2000 decreased 17.21 points (1.46%) to 1,163.47, and the Wilshire 5000 lost 329.00 points (1.57%) to finish at 20,678.73.

On the NYSE, 3.2 billion shares changed hands, with declining issues outnumbering advancing issues more than 2 to 1. On the NASDAQ, 2.8 billion shares traded, with a near 2 to 1 lead for decliners.

The price of the 10-year Treasury note increased 16/32, bringing its yield down to 2.134%. The price of the 30-year Treasury bond climbed 1 14/32, decreasing its yield to 2.934%.

WEEK’S WORTH: For the week ending September 18, the Dow lost 0.29%, the NASDAQ was up 0.10%, and the S&P 500 finished 0.24% lower. The Russell 2000 gained 0.49%, and the Wilshire 5000 was down 0.06%.

Two Alternatives in Guidance About State-Run Plans
As many states are leading the charge to expand retirement plan access to private-sector employees, President Obama earlier this year asked the Department of Labor (DOL) to issue guidance for states about how to move forward. According to a blog post by Secretary of Labor Thomas Perez, the proposal has been sent to the Office of Management and Budget (OMB) for review, and it includes two alternatives for expanding access to retirement plans.Read more >
9th Circuit Weighs In on Successor Withdrawal Liability
In determining whether an employer was subject to the Multiemployer Pension Plan Amendments Act (MPPAA) rules for withdrawal liability when a contributing employer ceased operations, a district court misapplied the continuity of the workforce factor in determining whether another company was a successor employer, an appellate court found. The 9th U.S. Circuit Court of Appeals said the district court had given too much weight to the continuity of the workforce factor. The appellate court held that the most important factor in assessing whether an employer is a successor for purposes of withdrawal liability is whether there is substantial continuity in the business operations between the predecessor and successor, and it gave a method by which that should be measured.Read more >
Participant Could Get Relief for Document/SPD Difference
The 6th U.S. Circuit Court of Appeals has determined that a pension plan’s summary plan description (SPD) failed to provide all the information required by the Employee Retirement Income Security Act (ERISA) about eligibility for supplemental benefits, so a participant who relied on the SPD and expected those benefits may be due relief. Citing the Supreme Court decision in CIGNA Corp. v. Amara, the appellate court said that under ERISA Section 502(a)(3), a material conflict between the SPD and plan document can give rise to a claim for equitable relief.Read more >
Small Talk
ON THIS DATE: In 1897, the New York Sun ran the “Yes, Virginia, there is a Santa Claus” editorial. It was in response to a letter from 8-year-old Virginia O’Hanlon. In 1937, J.R.R. Tolkien’s “The Hobbit” was first published. In 1948, Milton Berle debuted as the host of “The Texaco Star Theater” on NBC-TV. The show later became “The Milton Berle Show.” In 1970, “NFL Monday Night Football” made its debut on ABC-TV. The game was between the Cleveland Browns and the New York Jets. In 1981, the U.S. Senate confirmed Sandra Day O’Connor to be the first female justice on the U.S. Supreme Court. In 1996, the board of the all-male Virginia Military Institute voted to admit women.
SURVEY SAYS: Last week, I asked NewsDash readers, “Is your boss from a different ‘generation’ than you, and does this cause you issues at the workplace?” There wasn’t a wide variety of generational differences between responding readers and their bosses. However, among those who are from different generations than their bosses, there are quite a few issues. From the list, the issue most selected (36.4%) was “gap in knowledge about, or difference in use of, technology.” More than 27% chose “all of the above.” Comments from readers spanned from “It is nice to be of the same generation as the boss. Having shared generational experiences makes it easier to ‘get’ each other” to “Even though we were born during the same generation, my boss is from a different planet, therefore, we differ in many ways.” Some readers expanded on the differences between their bosses and them, and one “boss” commented that he was “gettin’ schooled” by the other two generations. Editor’s Choice goes to the reader who said, “I’m a Gen-Xer and my boss is from the Silent generation—did you forget that there are people older than Baby Boomers still in the workforce?” Thanks to those who participated in the survey!Read more >
Share the good news with a friend! Pass the Dash along – and tell your friends/associates they can sign up for their own copy.Read more >

Editorial: Alison Cooke Mintzer


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