Week ending April 21st, 2017

Hello, PLANSPONSOR readers! Despite news reports of struggling retirees, this week, the Investment Company Institute found they have adequate income replacement. But, research from Morningstar shows those of us not yet retired need nudges to improve savings. Retirement plan consultants make recommendations for defined contribution (DC) plan investment lineups, while research from Pew reveals defined benefit (DB) plans’ move to alternative investments actually results in more volatility. Also, time is running out for those plan sponsors with individually designed plans who want to adopt a pre-approved plan now that the Internal Revenue Service (IRS) determination letter program has changed. Enjoy your weekend!

Editor's choice

Data and Research

ICI Measures Adequate Income Replacement

Research findings show Social Security benefits and retirement income from employer-sponsored retirement plans, annuities, and IRAs together provide substantial income for U.S. retirees. Read more >

Administration

Participants Must Be ‘Nudged’ Toward Higher Savings Rates

New research by Morningstar suggests plan sponsors may benefit from increasing default savings rates, relying on opt-out auto escalation features, and stretching the employer match. Read more >

Investing

Target-Date Fund Reviews a Top Priority for Plan Sponsors

Consultants responding to a PIMCO survey make recommendations for defined contribution (DC) plan investment lineups. Read more >

Investing

Public Pension Shift to Alternatives Results in More Volatility

Data from Pew does not reveal a best or one-size-fits-all approach to successful investing, but there is a uniform need for full disclosure on investment performance and fees. Read more >

Compliance

DC Plan Sponsors Have Until May 1 to Adopt Pre-Approved Plan

Plan sponsors with individually designed plan documents may want to adopt a pre-approved plan since the end of the IRS determination letter program. Read more >

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MOST POPULAR STORIES

House Committee Advances Bill to Establish Union Pension Lifeline Program

The legislation aims to establish a 30-year loan program and new financial assistance for financially troubled multiemployer pension plans.

The Senate Math That Could Block SECURE Act

Senate floor time is at a premium ahead of the 2020 presidential election—so much so that even legislation that passed the House with a near-unanimous bipartisan vote is not guaranteed to become law.

Adidas Sued Over Excessive Fees for 401(k) Participants

Plaintiffs in the lawsuit argue that passive funds would have resulted in better returns net of fees that the actively managed funds offered in the plan.

Open MEPs Not for Every Plan Sponsor

If legislation passes to allow for open multiple employer plans (MEPs) for plan sponsors without a common nexus, experts believe they will offer benefits to plan sponsors, but there would be some considerations to explore before joining one.

Employers Encouraged to Offer Multi-Dimensional Wellness Programs

Among those that include physical, social, financial, community and mental health, employee productivity is higher.

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

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

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