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Week ending March 10th, 2017 |
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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! |
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| 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. | |
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