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
IRS Announces 2020 Contribution and Benefit Limits

The contribution limit for employees who participate in 401(k), 403(b) and most 457 plans is increased from $19,000 to $19,500.

Maximum Benefit and Contribution Limits Table 2020

Maximum Benefit/Contribution Limits for 2015 through 2020, with a downloadable PDF of limits from 2010 to 2020.

IRS Proposes Update to Mortality Tables Used to Calculate RMDs

The life expectancy tables and applicable distribution period tables in the proposed regulations reflect longer life expectancies than the tables in the existing regulations.

Employees Are Making Each Other Sick

Having too much work to do and feeling pressure from employers are some reasons employees report coming into work while under the weather.

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.

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

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