PLANADVISER Weekend Newsdash
Week ending January 4th, 2019

Happy Friday, readers! It’s a common saying in the retirement plan industry that the back-end of the savings effort (i.e., spending down accumulated assets in a sustainable and efficient way) is far more complicated than the accumulation effort. This is because plan participants all have different longevity expectations, different beliefs about how they would like to live in retirement, and different conclusions about how to weigh longevity risk versus the risk of under-consumption. Making matters even more difficult, survey data shows that plan sponsors are not necessarily thinking strictly about annuities when contemplating the addition of an in-plan retirement income option. Despite this, recordkeepers and asset managers most commonly point to an annuity-based product as being top-of-mind for plan sponsor clients. Will 2019 deliver greater clarity on this vexing topic?

Income in Retirement
Advisers, Providers and Sponsors View In-Plan Income Differently
According to Cerulli research, the various parties involved in the implementation of an in-plan retirement income solution are often not on the same page about basic terminology and definitions. Read more >
Treasury Calls for More In-Plan Lifetime Retirement Income Products
The department believes an oversight bureau, created to assess the financial strength of annuity providers, would help employers and advisers become more comfortable including annuities in retirement plans. Read more >
Advisers Play a Key Role in Estimating Monthly Income in Retirement
Nearly all of those who work with an adviser feel they have prepared themselves well for estimating their monthly income needs in retirement, Voya Financial learned in a survey. Read more >
SEC Considers New Annuity and Life Insurance Summary Disclosures
The proposal is intended to help investors better understand these contracts’ features, fees and risks, and to more easily find the information needed to make an informed investment decision. Read more >
Experts Probe Potential Signs of Variable Annuity Sales Recovery
Variable annuities continue to face challenges in the wake of transaction processing disruptions caused by the now-vacated DOL fiduciary rule; however, experts anticipate sales to recover as business processes normalize and newer product types come to market. Read more >
Exploring How Sponsors Can Offer Guaranteed Lifetime Income
One option is through a profit sharing plan that invests the money in an annuity once a participant retires. Read more >
MOST POPULAR STORIES
Principal Reveals Eagerly Awaited Wells Fargo Platform Integration Strategy

Principal is incorporating capabilities from the Wells Fargo Institutional Retirement and Trust platform into its own proprietary recordkeeping system, which will serve Principal and transitioning Wells Fargo customers moving forward.

SECURE Act Ensnared in Senate After Flying Through House
Washington insiders say Senator Ted Cruz is probably the biggest roadblock to the SECURE Act being passed in the near-term under unanimous consent; among other issues, he wants the bill to allow people to use tax-advantaged 529 college savings accounts to pay for home school expenses.
Jumbo Imprudence Alleged in H.E. Butt ERISA Challenge

Plaintiffs says defendants failed to properly monitor and control the plan’s expenses, and allowed the plan to become one of the most expensive “jumbo” 401(k) plans in the country.

Fiduciary Advisory Firms Sue to Block SEC’s Reg BI

Two advisory firms argue they are harmed by the “best interest” rule because it causes them a competitive disadvantage with respect to broker/dealers, and because the rule will increase rather than abate investor confusion.

MIT ERISA Lawsuit Parties Announce Settlement

Trial was to begin on the case September 16.

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

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