PLANSPONSOR Weekend Newsdash
Week ending August 24th, 2018

Defined benefit (DB) plans require much work and attention, especially regarding investments. Many DB plan sponsors are using a liability-driven investing approach to make sure the assets held for the plan match the liability of the benefits it needs to pay. However, DB plans need growth as well to improve their funded status. In this week’s edition of PLANSPONSOR Weekend, we offer insights from various entities about improving investment performance and cost for DB plans.

Editor's choice
Lawsuit Challenges Benefit Cuts Under the Multiemployer Pension Reform Act
Plaintiffs seek government compensation for participants “prevented from accessing their own financial property.” Read more >
Is the Risk-Matching Precision of SMAs Worth the Cost and Complexity?
Recent Vanguard research explores the defined benefit (DB) plan risk-matching precision behind separately managed accounts (SMAs) and whether other investment vehicles, including collective investment trusts (CITs) and mutual funds, can equate that effectiveness. Read more >
Institutional Investors Need to View ETFs Differently
Investors and broker-dealers should start treating exchange-traded funds (ETFs) as an asset class all their own, Kevin McPartland, with Greenwich Associates suggests. Read more >
Fees Negatively Correlated With Public Plans’ Ability to Meet Benchmarks
Alternative investments charge higher fees than traditional asset classes such as public equities and fixed income, and according to a study, these fees, in particular, may play a meaningful role in public plan underperformance. Read more >
PanAgora Suggests New Investing Strategy for Public DB Plans
“A cap-weighted strategy skews its way toward the largest stocks, but if plan sponsors own equities in a much more balanced way, it will help with stability,” says Bryan Belton, director, multi asset, at PanAgora Asset Management. Read more >
AT&T Sued Over Calculation of Early Retirement Benefits

The plaintiffs say the plan’s terms reduce benefits using “Early Retirement Factors” and “Joint and Survivor Annuity Factors” which result in plan participants receiving less than the actuarial equivalent of their vested accrued benefit, as required by ERISA.

Congressional Leaders Want SECURE Act Passage in 2019

Based on the conversations industry advocates are having in Washington, none of the leadership in the Senate or the House opposes passage of the SECURE Act.

New Lawsuit Highlights Importance of Cybersecurity for Retirement Plans

A former 401(k) plan participant is suing the plan sponsor and plan providers after unauthorized distributions were made from her account.

IRS Releases 2019-2020 Priority Guidance Plan

The IRS invites public comments and suggestions about guidance.

DC Plans 3.0 Will Really be Tailored to Individual Situations

Bob Collie, head of research at the Thinking Ahead Institute, tells PLANSPONSOR version 3.0 will be customized by “hyper-customization and integrated whole-of-life wealth management” that takes into account all of a person’s savings.

Editorial: Alison Cooke Mintzer


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