PLANSPONSOR Weekend Newsdash
Week ending January 8th, 2016
Happy Friday, PLANADVISER readers. It may be a new calendar year, but the professionals running retirement plans are still concerned with the same serious fiduciary risks that have long-troubled the 401(k) industry. They’re also facing renewed rounds of market volatility and a global economic picture that has many worried about what comes next. Whatever happens in 2016, stick with for the latest news and breaking information.
Editor's choice
'Largely Unpredictable' Which Clients Could be Sued by Participants
One attorney specializing in ERISA litigation suggests the pace of lawsuits has increased fairly substantially in the last year, with signs of even more momentum in 2016. Even more concerning, he says, “there’s no plan design panacea that will prevent all possible challenges. It’s unpredictable who will get sued.” Read more >
Bob Doll Peers Into His Crystal Ball for 2016
Recent equity price swings aside, Bob Doll predicts the economy will keep on muddling through in 2016; investors will have to jump some hurdles, but there is still room for optimism. Read more >
A New Look at Social Security Income Replacement Rates
The Congressional Budget Office has performed a new analysis of pre-retirement income replacement rates limited to workers’ “last five years of substantial earnings, adjusted for growth in prices.” Not as grim as other analyses, the report still shows many will have to save much more for a comfortable retirement.  Read more >
PPA Vision of More Informed Investors Has Progressed
A short series of papers published by Vanguard shows knowledge of investing principles and fund features directly impacts the likelihood of investing success, even in product categories designed to put most decisionmaking in the hands of professionals. Read more >
Clients Will See Little Effect from SEC Liquidity Risk Efforts
The agency explains that it is proposing a new rule 22e–4 under the Investment Company Act, which would require mutual funds to establish liquidity risk management programs. Read more >
Confusion Abounds After Fifth Circuit Decision Vacates DOL Fiduciary Rule

The latest decision out of the Fifth U.S. Circuit Court of Appeals throws a dramatic new element of confusion into the epic regulatory saga that has been the rollout of the Department of Labor fiduciary rule.

Will SCOTUS Decide the Fate of the DOL Fiduciary Rule?

Some ERISA attorneys argue the Fifth Circuit decision last week to vacate entirely the DOL’s fiduciary rule expansion makes a Supreme Court decision on the matter inevitable; others are less sure that a decisive SCOTUS decision could be forthcoming, instead expecting the SEC to take the lead; still others admit they have little idea how the regulatory picture will shake out, recommending patience and ongoing compliance.

Many Americans Would Forego Social Security Payments for Student Loan Debt Forgiveness

The Student Security Act of 2017​ would grant $550 in student loan forgiveness for each month a student debtor was willing to raise his or her full retirement age, or $6,600 per year.

Nearly Three-Quarters of Boomers Want to Delay Retirement

More than three in 10 have no retirement budget.

DISRUPTION: Insider Service and Strategy Talk With PGIM
In an exclusive interview with PLANADVISER, PGIM Head of Institutional Defined Contribution Josh Cohen offers some guidance to advisers speaking with plan sponsors about litigation, fiduciary risk and progressive plan design.

Editorial: Alison Cooke Mintzer

Advertising: Paul Zampitella

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