PLANSPONSOR Weekend Newsdash
Week ending December 1st, 2017

Hello, PLANSPONSOR readers! This week we focus on plan design and administration. A survey found some health care organizations are moving from 403(b) plans to 401(k)s and most, no matter which type of plan they offer, are revamping them to attract more talent. AB suggests six ways defined contribution (DC) plan sponsors can improve their plans. Willis Towers Watson found that while most employees want employers to offer tools to help them improve their financial situation, many balk at receiving targeted, personalized messages. However, Professor Shlomo Benartzi, business school professor at the University of California, Los Angeles (UCLA), Anderson School of Management, shared some tricks for using technology to nudge employees to save more. He said digital displays are attractive to participants because they are anonymous and there is no judgment. Cambridge Associates suggested defined benefit (DB) plan fiduciaries should coordinate across four “levers” that can help improve funded status and mitigate negative impacts of under-funding on corporate financials. Enjoy this edition of PLANSPONSOR Weekend!

Editor's choice
Data and Research
Health Care Organizations Move From 403(b)s to 401(k)s
To retain and attract staff, many health care organizations have been shoring up their retirement plans and, in many cases, updating them to look more like those found in the private sector. Transamerica also found that many health care organizations are moving away from 403(b) plans to 401(k) plans. Read more >
Data and Research
AB Outlines Six Ways to Improve DC Plans Markedly
There are steps that defined contribution (DC) plan sponsors can be taking to improve their plans now, AB says in a new blog, “Six Steps to Take DC Plans to the Next Level.” Read more >
Data and Research
Half of Employees Don’t Want Personalized Messages About Saving for Retirement
Willis Towers Watson found that 53% of employees would like their employers to offer tools to help them improve their financial situation. However, 57% do not want their employer to send personalized messages to people facing important financial decisions. Read more >
Administration
Digital Nudges the Next Step in Improving Participant Retirement Savings
Professor Shlomo Benartzi, business school professor at the University of California, Los Angeles (UCLA), Anderson School of Management, says technology can be used immediately to improve retirement plan participation and savings rates. Read more >
Administration
DB Plan Sponsors Should Balance Four Levers to Improve Funding
No lever alone is enough to close the pension funding gap, according to a report from Cambridge Associates. Read more >
MOST POPULAR STORIES
AT&T Sued Over Calculation of Early Retirement Benefits

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.

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.

New Lawsuit Highlights Importance of Cybersecurity for Retirement Plans

A former 401(k) plan participant is suing the plan sponsor and plan providers after unauthorized distributions were made from her account.

IRS Releases 2019-2020 Priority Guidance Plan

The IRS invites public comments and suggestions about guidance.

DC Plans 3.0 Will Really be Tailored to Individual Situations

Bob Collie, head of research at the Thinking Ahead Institute, tells PLANSPONSOR version 3.0 will be customized by “hyper-customization and integrated whole-of-life wealth management” that takes into account all of a person’s savings.

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

Advertising: advertise@strategic-i.com

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