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.
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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.”
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A retiree’s investment portfolio is a large factor in determining an optimal, safe withdrawal rate in retirement, but longevity, expected spending and whether guaranteed retirement income is available plays a part as well.
The availability of Roth contributions has doubled in the last decade, and more plan sponsors are using a default deferral rate with automatic enrollment that is higher than 3%, a Plan Sponsor Council of America survey found.