PLANSPONSOR Weekend Newsdash
Week ending September 28th, 2018

Investing is a big part of managing a defined benefit (DB) plan. DB plan sponsors must constantly look for ways to match assets with liabilities and improve their funded status. In addition, for those considering a pension risk transfer (PRT) strategy, funded status and asset allocation are important. Alternatives to traditional stock and bond investments have been considered, and useful. Some DB plans, especially larger ones, feel the need to incorporate activism in their investment selection. But, all investment considerations should begin with the realization of the duty to keep employees’ best interest in mind. This edition of PLANSPONSOR Weekend offers food for thought regarding DB plan investing.

Editor's choice
Trade War Effects on Retirement Plans
What plan sponsors should consider as trade wars intensify. Read more >
Fixed-Income ETFs Used to Address Bond Market Issues
“A majority of institutions around the world now consider bond ETFs as an alternative for fixed-income exposure and liquidity,” says Greenwich Associates Managing Director Andrew McCullum. Read more >
Data and Research
Institutional Investors Entering New Asset Classes, Paying Less in External Fees
Cost reductions are evident across asset classes—not just in equity. Read more >
MassMutual Paper Serves As Primer for PRT Considerations
“While PRT can be a highly effective tactic for plan sponsors to reduce risk and shift liabilities off their books,” MassMutual says, “it’s possible to increase pension costs and risks if a PRT is not executed with long-term goals in mind.” Read more >
Plan Sponsors Need the Right Motivations for Choosing ESG Investments
Political motivations and investor recommendations can result in choosing a low-performing investment for a retirement plan. Read more >
House Committee Advances Bill to Establish Union Pension Lifeline Program

The legislation aims to establish a 30-year loan program and new financial assistance for financially troubled multiemployer pension plans.

The Senate Math That Could Block SECURE Act
Senate floor time is at a premium ahead of the 2020 presidential election—so much so that even legislation that passed the House with a near-unanimous bipartisan vote is not guaranteed to become law.
Open MEPs Not for Every Plan Sponsor
If legislation passes to allow for open multiple employer plans (MEPs) for plan sponsors without a common nexus, experts believe they will offer benefits to plan sponsors, but there would be some considerations to explore before joining one.
Adidas Sued Over Excessive Fees for 401(k) Participants

Plaintiffs in the lawsuit argue that passive funds would have resulted in better returns net of fees that the actively managed funds offered in the plan.

Employers Encouraged to Offer Multi-Dimensional Wellness Programs

Among those that include physical, social, financial, community and mental health, employee productivity is higher.

Editorial: Alison Cooke Mintzer

Advertising: Paul Zampitella

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