Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
September 21st, 2018
From the Magazine
Getting Them Back on Track
In 2016, employee tenure with an employer, for all wage and salary workers ages 25 and older, was 5.1 years—down from a high of 5.5 years in 2014 and up from the 4.7-year median seen between 1998 and 2002. Even 35 years ago, around the beginning of the 401(k)’s ascendance, the median tenure was 5.0 years. In other words, historically, most workers have changed jobs many times during their careers, and all evidence suggests they will continue to do so, according to research from the Employee Benefit Research Institute (EBRI). Yet, when it comes to retirement, the defined contribution (DC) plan system is not set up to help participants maximize their savings over their working lives. Persistent job changes may bring career growth, but there can also be ramifications, which could include the reduction of the worker’s retirement plan savings rate. Any time an employee switches jobs, he is at risk. Read more >
PLANSPONSOR Research
PLANSPONSOR Defined Contribution Survey Open
Sponsors of defined contribution (DC) plans are invited to respond to our annual DC Survey through September 28. The survey is our largest and most important research project of the year, but we need your help for it to be a success. Read more >
Benefits & Administration
How Sponsors Can Offer Guaranteed Lifetime Income
DIETRICH and OneAmerica Retirement Services hosted a webinar that explored the need for guaranteed lifetime income, the obstacles sponsors face when trying to offer in-plan annuities, and one way to offer guaranteed lifetime income outside of a 401(k) plan. Read more >
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DC Plans 3.0 Will Really be Tailored to Individual Situations
Economic Events

In the week ending September 15, the advance figure for seasonally adjusted initial claims for unemployment insurance was 201,000, a decrease of 3,000 from the previous week’s unrevised level of 204,000, the Labor Department reported. This is the lowest level for initial claims since November 15, 1969, when it was 197,000. The four-week moving average was 205,750, a decrease of 2,250 from the previous week’s unrevised average of 208,000. This is the lowest level for this average since December 6, 1969, when it was 204,500.

 

Existing-home sales remained steady in August after four straight months of decline, according to the National Association of Realtors. Sales gains in the Northeast and Midwest canceled out downturns in the South and West. Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, did not change from July and remained at a seasonally adjusted rate of 5.34 million in August. Sales are now down 1.5% from a year ago (5.42 million in August 2017).

 

The average interest rate for a 30-year fixed-rate mortgage is 4.65%, up from 4.60% one week ago, according to Freddie Mac. The average interest rate for a 15-year fixed-rate mortgage is 4.11%, up from 4.06%.

Sponsored message from Vanguard
How TDFs can help combat inflation
Can target-date funds (TDFs) withstand increasing inflationary pressures? We believe so, all while providing long-term growth in excess of inflation. Read more >
Market Mirror

Thursday, the Dow climbed 251.22 points (0.95%) to 26,656.98, the NASDAQ closed 78.19 points (0.98%) higher at 8,028.23, and the S&P 500 increased 22.80 points (0.78%) to 2,930.75. The Russell 2000 was up 17.25 points (1.01%) at 1,720.18, and the Wilshire 5000 gained 229.94 points (0.76%) to finish at 30,462.29.

 

The prices of both the 10-year Treasury note and 30-year Treasury bond were down 1/32, increasing their yields to 3.066% and 3.199%, respectively.

Products, Deals & People
Principal Expands Financial Wellness Program
Principal Milestones, which includes iGrad’s Enrich financial wellness program, helps participants access comprehensive financial education resources all in one place. Read more >
Investment Product and Service Launches
MassMutual debuts RetireSMART TDF series with J.P. Morgan glide paths, while AXA doubles down on SRI/ESG integration. Read more >
Small Talk

ON THIS DATE: In 1792, the French National Convention voted to abolish the monarchy. In 1784, “The Pennsylvania Packet and Daily Advertiser” was published for the first time in Philadelphia. It was the first daily paper in America. In 1893, Frank Duryea took what is believed to be the first gasoline- powered automobile for a test drive. The “horseless carriage” was designed by Frank and Charles Duryea. 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 1949, Communist leaders proclaimed The People’s Republic of China. In 1957, “Perry Mason”, the television series, made its debut on CBS-TV. In 1970, “NFL Monday Night Football” made its debut on ABC-TV. The game was between the Cleveland Browns and the New York Jets. The Browns won 31-21. In 1973, Henry Kissinger was confirmed by the U.S. Senate to become 56th Secretary of State. He was the first naturalized citizen to hold the office of Secretary of State. In 1981, the Senate confirmed Sandra Day O’Connor to be the first female justice on the U.S. Supreme Court. In 1996, the board of all-male Virginia Military Institute voted to admit women.

 

 

No FRIDAY FILES this week.

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

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