Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
September 6th, 2017
Benefits & Administration
EBRI Sees a Rebound in Small Employers Offering Health Coverage
Over the last year, perhaps with the strengthening economy and lower unemployment rates, there is evidence of what may be a rebound in employment-based health insurance coverage offer rates among firms with 10 to 999 employees, according to an EBRI Notes article from the Employee Benefit Research Institute. Since passage of the Affordable Care Act (ACA), smaller firms have shown a steady, though not precipitous, decline in offer rates. However, from 2015 to 2016, for employers with 10 to 24 employees, those offering health benefits increased from 48.9% to 49.4%. However, for the future, EBRI suggests it’s possible certain public policy changes, if adopted, may drive some employers—larger and smaller employers alike—away from offering health benefits. Read more >
Retirement Plan Practices Under Question for New Generation of Savers
Members of Generation Z (ages 16 to 23) are receptive to retirement plan communication and education and have exciting potential to be financially prepared for retirement by age 70, according to a June survey of 2,000 members of Generation Z conducted by EACH Enterprise. Findings suggest standard defined contribution (DC) plan practices may create obstacles to the retirement success of workforce entrants. For example, immediate eligibility and no entry age requirement would help Generation Z benefit from the time value of money. Read more >
Award Nominations
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 >
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Economic Events

New orders for manufactured durable goods in July, down three of the last four months, decreased $16.8 billion or 6.8% to $228.9 billion, virtually unchanged from the previously published decrease, the Census Bureau announced. This followed a 6.4% June increase. Transportation equipment, also down three of the last four months, drove the decrease, $17.6 billion or 19.2% to $74.1 billion. New orders for manufactured nondurable goods increased $1.0 billion or 0.4% to $237.4 billion.

Market Mirror

Yesterday, the Dow fell 234.25 points (1.07%) to 21,753.31, the NASDAQ closed 59.76 points (0.93%) lower at 6,375.57, and the S&P 500 was down 18.70 points (0.76%) at 2,457.85. The Russell 2000 decreased 13.92 points (0.98%) to 1,399.65, and the Wilshire 5000 lost 192.63 points (0.75%) to finish at 25,524.66.

 

The price of the 10-year Treasury note decreased 14/32, bringing its yield up to 2.168%. The price of the 30-year Treasury bond fell 1 2/32, increasing its yield to 2.779%.

Sponsored message from Charles Schwab Retirement Plan Services Inc.
Workplace Financial Wellness
Insights on definition, design, and what’s driving decisions for financial wellness programs in the workplace. Read more >
Compliance
IRS Again Extends Closed DB Plan Nondiscrimination Relief
The Internal Revenue Service (IRS) has issued Notice 2017-45, which extends the temporary nondiscrimination relief for closed defined benefit (DB) plans that is provided in Notice 2014-5, by making that relief available for plan years beginning before 2019 if the conditions of Notice 2014-5 are satisfied. Read more >
Industry Voices
Barry’s Pickings Online: A Parade of the Ridiculous
Michael Barry, president of the Plan Advisory Services Group, discusses possible implications of the DOL fiduciary rule and how the agency missed fixing what needs to be fixed. Read more >
Investing
401(k) Participant Investing Much Different From 20 Years Ago
Looking over 20 years of the Alight Solutions 401(k) Index (formerly the Aon Hewitt 401(k) Index), two major trends have emerged— 401(k) portfolio allocations have changed dramatically, and trading activity has steadily decreased except when market corrections occur, according to an analysis by Alight Solutions. The analysis finds that in 1997, the asset class with the greatest amount of participant balances was company stock (29%). Read more >
Small Talk
This year’s entering college class of 2021 doesn’t remember when a “phone” wasn’t also a video game and a research library. Ask them about the whine of a dial-up modem, and you can likely expect a blank stare. These are among the items in this year’s Beloit College Mindset List, the 20th such release since the list was first compiled in 1998. The List’s current subjects are the last class to be born in the 1900s—the last of the Millennials. Read more >

ON THIS DATE: In 1620, the Pilgrims left on the Mayflower from Plymouth, England, to settle in the New World. In 1876, the Southern Pacific rail line from Los Angeles to San Francisco was completed. In 1899, Carnation processed its first can of evaporated milk. In 1901, U.S. President William McKinley was shot and mortally wounded (he died eight days later) by Leon Czolgosz, an American anarchist. In 1909, Robert Peary, American explorer, sent word that he had reached the North Pole. He had reached his goal five months earlier. In 1943, the youngest player to appear in an American League baseball game was pitcher Carl Scheib of the Philadelphia Athletics. Scheib was 16 years, eight months and five days old. In 1975, Martina Navratilova requested political asylum while in New York for the U.S. Open Tennis Tournament. In 1995, Cal Ripken played his 2,131st consecutive game setting a new record. Lou Gehrig previously held the record. In 2002, in New York, the U.S. Congress convened at Federal Hall for a rare special session. The session was held in New York to express the nation’s mourning for the loss on September 11, 2001, and unity in the war against terrorism.

 

 

WEDNESDAY WISDOM: “Have patience. All things are difficult before they become easy.”—Saadi, medieval period Persian poet

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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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