PLANSPONSOR Weekend Newsdash
Week ending March 10th, 2017
Let’s look at this past week on the positive side! For instance, if President Donald Trump’s pro-growth economic strategies are implemented, defined contribution (DC) and defined benefit (DB) plans may benefit. Besides that, increasingly, more participants in need of funds now avoid tapping their 401(k) plan by using profits from their company stock plan, often a savings vehicle used alongside a retirement plan. Additionally, a spike was reported in adoption of health savings accounts (HSAs); over 40% of enrollees plan to use them to save for impending medical needs. Four in 10 DB plan sponsors reported being very interested in pension risk transfer (PRT) products, which is a 10% jump in such interest compared with data gathered in 2014; these products allow an employer to transfer pension liability to an insurer, with some positive results. And a challenge for plan sponsors and advisers…sixty-one percent of Americans between the ages of 55 and 75 believe having guaranteed income is a smart and sound benefit according to a new survey, but they need assistance sorting this out. Have a great weekend!  
Editor's choice
Investing
Can President Trump’s Economic Plans Boost Real Assets in the DC Space?
President Trump’s infrastructure spending proposal and other pro-growth economic strategies could have a positive effect on real assets if they are successfully implemented; DC and DB plans may be able to capitalize.   Read more >
Investing
ESPPs a Useful Stopgap for 401(k) Loans, Fidelity Says
Workers are using the profits from their employee stock purchase programs (ESPPs) wisely, such as paying down debt or reinvesting the money in their retirement plan.  Read more >
Participants
Despite High Costs, HSAs See Increase in Enrollment
More than 40% of those who own HSAs plan to use the funds for future medical costs.  Read more >
Administration
Growing Plan Sponsor Interest in Pension Risk Transfer
A growing number of DB plan sponsors are considering PRT products at a time when PBGC premiums have increased by more than 300%, a new study finds.   Read more >
Data and Research
Older Folks Eager for Guaranteed Income But Don't Know Much About It
Ninety percent want their financial adviser to help them devise a retirement income strategy, and 61% want them to educate them about income products.  Read more >
MOST POPULAR STORIES
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 alison.mintzer@strategic-i.com

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

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