Happy Holiday celebrations, PLANSPONSOR readers! As we focus on investing, studies show Americans are unsure about what stock market volatility will do to their plans for retirement, and pre-retirees and retirees may be unsuitably invested. Plan sponsors are still being questioned about their use of company stock in their retirement plans, and CVS won confirmation that its plan’s stable value fund was not improper. Institutional investors are seeing hope for good returns in focused strategies, and the active versus passive debate still lives on. Enjoy this edition of PLANSPONSOR Weekend!
The lawsuit alleges that Gannett Co., its benefit plans committee and other fiduciaries’ decision to concentrate plan investments in Gannett’s parent company common stock was a breach of their fiduciary duties under the Employee Retirement Income Security Act (ERISA) and caused a loss of approximately $135 million.
Read more >
Steve Deschenes, product management and analytics director at Capital Group, says, “The active-passive debate is an industry discussion which distracts investors from what can have a real impact on their portfolios.”
Read more >
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.
Employers are encouraging the use of biosimilars instead of specialty pharmacy products, creating an environment that makes it clear and easy for employees to opt for high-value services, and engaging effective programs to help manage anxiety and stress.
The Retirement Savings Selector Tool for Small Businesses was created to help small businesses identify a retirement savings option that may be a fit for their business by answering a few quick and easy questions.