PLANSPONSOR Weekend Newsdash
Week ending April 27th, 2018

Hello, PLANSPONSOR readers. After hearing witnesses shared the history of multiemployer plans, the newly formed Joint Select Committee on Solvency of Multiemployer Pension Plans is calling on retirement industry experts and the public to provide information about the funding and risk management challenges plaguing the U.S. multiemployer pension system. A study suggests institutional investors are leaving money on the table by using familiar investment vehicles like bonds without first looking to see if they could obtain the same exposure efficiently with another product like an exchange-traded fund (ETF) or a future. MassMutual aims to help defined benefit (DB) plan sponsors with a new quarterly market update and commentary about economic and regulatory conditions and their impact on managing pension obligations. You’ll find all this and more DB plan-related news in this edition of PLANSPONSOR Weekend.

Editor's choice
Compliance
New Joint Committee Seeks Input on PBGC Solvency, Multiemployer Pensions
U.S. Senators Orrin Hatch and Sherrod Brown are seeking public and industry input on ways to improve the solvency of multiemployer pension plans and the Pension Benefit Guarantee Corporation. Read more >
Investing
Institutional Investors Could Enhance Returns With Better Vehicle Selection
“Portfolio managers and their trading desks primarily choose [investment] instruments based solely on personal experience rather than through an analytical process,” says Kevin McPartland, with Greenwich Associates. Read more >
Administration
Study Finds Different Paths for Corporate and Public Pensions
A global survey of 300 pension funds explores the commonalities and differences between corporate and public-sector defined benefit (DB) plans and finds corporate plans are winding down as public plans are strengthening themselves for the long run. Read more >
Compliance
Court Finds DB Plan Change Does Not Violate ERISA or ADEA
Northern Trust amended its benefit formula in 2012 and provided a transitional benefit that assumed salary increases of 1.5% per year, and the court found expectations of higher salary increases was not part of an “accrued benefit.” Read more >
Investing
ETF Investment Flourishes in Institutional Market
A new exchange-traded fund (ETF) market analysis from Greenwich Associates shows institutions continue relying on ETFs as “a liquid, fast and relatively low-cost tool in a wide range of tactical tasks,” such as managing cash flows and making nimble changes to their portfolios. Read more >
Products
MassMutual Introduces New Report to Guide DB Plan Sponsors
The quarterly Defined Benefit Market Update and Commentary is designed to support DB plan sponsor clients and potential clients in the ongoing management of their plans and includes data on interest rates, bond and equity markets, and commentary on economic and regulatory matters. Read more >
MOST POPULAR STORIES
IRS Announces 2019 HSA Contribution Limits

For an individual with family coverage, the 2019 health savings account (HSA) contribution limit is $7,000, up from the recently reset $6,900 limit for 2018.

4% Rule Not a Reliable Retirement Income Withdrawal Strategy for All People
A retiree’s investment portfolio is a large factor in determining an optimal, safe withdrawal rate in retirement, but longevity, expected spending and whether guaranteed retirement income is available plays a part as well.
Lawsuit Argues MetLife Pension Calculations Use Outdated Mortality Table

A newly filed complaint takes issue with the way MetLife calculates the actuarial equivalence of different types of annuity benefit options available in the firm’s pension plan.

401(k) Plan Sponsors Enhancing Plan Design

The availability of Roth contributions has doubled in the last decade, and more plan sponsors are using a default deferral rate with automatic enrollment that is higher than 3%, a Plan Sponsor Council of America survey found.

Financially Well Employees Buoy the Bottom Line

According to John Hancock data, helping employees reduce their financial worries is well worth employer’s time and attention.

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

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

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