Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
September 25th, 2017

2018 Annual Plan Sponsor and Adviser Award Nominations Are Open

Nomination forms for the 2018 PLANSPONSOR Plan Sponsor of the Year awards and Retirement Plan Adviser of the Year awards are now available. Read more >
Benefits & Administration
Cost Strategies and Vendor Contracting Employers’ Top Health Plan Concerns
As health care plan utilization places second in rising medical costs, the runner-up still isn’t going unnoticed among plan sponsors. When asked to rank cost-management strategies implemented by group health plans in 2017, survey respondents to a recent survey by the Segal Group listed prescription drug cost management strategies and improved vendor contracting as plan sponsors’ main concerns. “Using specialty pharmacy management; intensifying pharmacy management programs; contracting with value-based providers; increasing financial incentives in wellness design; and adopting a high deductible health plan (HDHP),” were the top five recorded by plan sponsors. Read more >
Parents Sacrificing Retirement Savings to Pay for Children’s College
T. Rowe Price’s 2017 Parents, Kids & Money Survey, which sampled parents of 8-to-14 year olds nationally, revealed that parents are still willing to scale back their retirement in order to cover their children’s college education. More parents are saving for their children’s college than their own retirement: 53% of parents are saving for their children’s college and 49% are saving for their own retirement. Children’s education is the second most common reason parents tap retirement savings, the survey found. Read more >
MOST READ ARTICLES
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House Committee Advances Bill to Establish Union Pension Lifeline Program
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Open MEPs Not for Every Plan Sponsor
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Products, Deals and People
Retirement Industry People Moves
FS Investments expands real estate investment efforts; Franklin Templeton hired ETF portfolio VP; DWC – The 401(k) Experts to merge with Hawkins Retirement; and more. Read more >
Economic Events

THE ECONOMIC WEEK AHEAD: Tomorrow, the Conference Board will release its Consumer Confidence Index for September, and the Bureau of Labor Statistics will report about new home sales for August. Wednesday, the Census Bureau will report about durable goods orders for August. Thursday, the Labor Department will issue its initial claims report.

Market Mirror

Friday, the Dow was down 9.64 points (0.04%) at 22,349.59, the NASDAQ was up 4.23 points (0.07%) at 6,426.92, and the S&P 500 increased by 1.62 (0.06%) to 2,502.22. The Russell 2000 closed 6.60 points (0.46%) higher at 1,450.78, and the Wilshire 5000 increased 19.17 points (0.07%) to 26,001.28.

 

The price of the 10-year Treasury note was up 6/32, decreasing its yield to 2.257%. The price of the 30-year Treasury bond increased 11/32, bringing its yield down to 2.786%.

 

WEEK’S WORTH: For the week ending September 22, the Dow finished 0.36% higher, the NASDAQ finished 0.33% lower, and the S&P 500 was up 0.08%. The Russell 2000 gained 1.33%, and the Wilshire 5000 increased 0.24%.

Compliance
Case Against University of Pennsylvania 403(b) Plan Dismissed
U.S. District Judge Gene E. K. Pratter of the U.S. District Court for the Eastern District of Pennsylvania dismissed all claims against the University of Pennsylvania and its vice president of human resources that they violated their fiduciary duties under the Employee Retirement Income Security Act (ERISA) by causing 403(b) plan participants to pay excessive fees and by offering an array of investment choices, many of which the plaintiff says underperformed. The judge basically found many of the allegations stated normal business practices and the plaintiff did not offer enough arguments to support her claims. Read more >
From the Magazine
Cybersecurity Concerns
Almost every day the news reports a high-profile story involving cybersecurity fraud. While cyberattacks on ERISA [Employee Retirement Income Security Act] plans have not resulted in such grandscale coverage—as those of us in the retirement plan industry are well aware—those attacks do happen, and both the plans and vendors can be the victims. Thus, if a cybersecurity attack has not yet threatened your plan, the question really isn’t if one will occur but when. Read more >
Small Talk

ON THIS DATE: In 1513, the Pacific Ocean was discovered by Spanish explorer Vasco Nunez de Balboa when he crossed the Isthmus of Panama. He named the body of water the South Sea. In 1789, the first U.S. Congress adopted 12 amendments to the Constitution. Ten of the amendments became the Bill of Rights. In 1847, during the Mexican-American War, U.S. forces led by General Zachary Taylor captured Monterrey Mexico. In 1890, the Sequoia National Park was established as a U.S. National Park in Central California. In 1890, Mormon President Wilford Woodruff issued a Manifesto in which the practice of polygamy was renounced. In 1965, Willie Mays, at the age of 34, became the oldest man to hit 50 home runs in a single season. In 1995, Ross Perot announced that he would form the Independence Party. In 2001, Michael Jordan announced that he would return to the NBA as a player for the Washington Wizards.

SURVEY SAYS RESPONSES: Last week, I asked NewsDash readers, “Do you think basic financial education should be taught in K-12 schools, and if so, starting at what grade?” Not surprisingly, the majority of respondents (95.8%) do think basic financial education should be taught in K-12 schools. However, 2.8% said it should not and 1.4% had no opinion. Asked what grade basic financial education should start, the majority of readers (55.7%) selected elementary grades (K-5). Twenty percent said Grade 6, 2.9% said Grad 7, 7.1% chose Grade 8, 8.6% selected Grade 9, 2.9% said Grade 10, and Grades 11 and 12 were each chosen by 1.4% of respondents. There were many comments by readers about the importance of starting financial education early, even before children start school. Some noted that parents should also teach these skills, while others noted that if children learn in school, they may be able to help their parents. A few readers even gave ideas for how to teach children basic financial concepts. Editor’s Choice goes to the reader who said: Just like English, Math, Science and Social Studies requirements, there should be mandatory classes (to graduate) for home economics.” Thanks to everyone who participated in the survey! Read more >
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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

Advertising: Paul Zampitella paul.zampitella@strategic-i.com

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