PLANSPONSOR Weekend Newsdash
Week ending December 22nd, 2017

Happy Friday, PLANSPONSOR readers! This week, we’ll center on defined benefit (DB) plans. First up, with 2017 coming to a close, brush up on provider options with our Defined Benefit Administration Survey, published in the April/May edition of PLANSPONSOR. Then, read up on the recently updated mortality tables from the Internal Revenue Service (IRS), applied for calendar year 2019. Nextif you’ve wondered why liability-driven investment (LDI) strategies are steadily popping up in pension plans, a new survey from Cerulli Associates can answer your question. Eighty-one percent of survey respondents indicated the top factor driving the appeal of LDI. In a different survey, Cerulli explores how economic, social and governance investing (ESG) is paving their way towards the defined benefit spectrum, and NCPERS research covers why policymakers should avoid diminishing public pensions. All this and more on this week’s edition of PLANSPONSOR Weekend. Have a great weekend, and a wonderful holiday to those celebrating!

Defined Benefit Administration Survey
Although published earlier this year, the end of the year can present a good opportunity to review provider options. Read more >
IRS Issues Mortality Tables to Be Used for DB Plans in 2019
The updated mortality improvement rates and static tables apply for purposes of calculating the funding target and other items for valuation dates occurring during calendar year 2019. Read more >
More DB Plans Using LDI Strategies
Eighty-one percent of pension plan professionals say funded status volatility is their top motivating factor for pursuing an LDI strategy. Read more >
DB Plans, Retail Investors Expected to Embrace ESG
Cerulli even expects environmental, social and governance investing to become “the baseline of how portfolios are constructed.” Read more >
Data and Research
Public Pensions Have Been Able to Pay Promised Benefits
New research shows that funding status has little correlation with a pension fund’s ability to pay its promised benefits, and NCPERS urges policymakers to stop trying to shut down public pensions. Read more >
J.P. Morgan Agrees to Settle Stable Value Funds Suit

The firm has agreed to pay $75 million to settle litigation brought by multiple retirement plan participants alleging J.P. Morgan invested its stable value funds in risky assets.

SECURE Act Passes House, Bringing Calls for Senate Collaboration

Reflecting on the much-anticipated House vote, Kevin Walsh, principal with Groom Law Group, said today is an important day for the retirement industry, but it’s not the end of the story.

Individuals, Employers and Government All Play a Part in Retirement Readiness

A new research report and Catherine Collinson, with Transamerica Center for Retirement Studies, lay out steps all three can take to improve retirement confidence and readiness in America.

Participant Loans: A Fiduciary Storm Brewing?
Bruce Ashton, with Drinker Biddle & Reath, discusses the fiduciary risk defined contribution (DC) plan sponsors could face when participants default on plan loans.
What to Know About Financial Audits Filed with Form 5500s
Plan sponsors required to file a financial audit along with their Form 5500 should know how regulators use the information and how to pick the best auditor.

Editorial: Alison Cooke Mintzer

Advertising: Paul Zampitella

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