Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
February 27th, 2018

HSAs in Retirement Planning

A 2017 report by the Employee Benefits Research Institute (EBRI) said that, last year, a 65-year-old man needed $73,000 in savings and a 65-year-old woman $95,000 for each to have a 50% chance of being able to cover premiums and median prescription drug expenses in retirement. If they wanted a 90% chance of having enough saved, the man would need $131,000 and the woman, $147,000. Read more >
Accelerating DB Funding an Important Strategy to Discuss
Tax reform has only increased the incentive to accelerate contributions to defined benefit plans, and there will still be incentives in the future, but plan sponsors won’t benefit if they don’t lock in those gains. Read more >
Court Finds Transamerica Not a Fiduciary in Fee Case
The same group of plaintiffs previously filed a lawsuit against John Hancock with similar allegations and a similar result. Read more >
Plaintiffs Won the Balance of ERISA Class Certification Motions in 2017
The number of Employee Retirement Income Security Act lawsuits winning class certification in 2017 far outstripped the number of suits within which class action status was denied; attorneys with Seyfarth Shaw offer detailed analysis of all the ongoing cases. Read more >
Americans Unprepared for Health Care Costs in Retirement
From a survey that Ipsos conducted for RBC, the firm learned that 80% of respondents are concerned about funding the cost of health care in retirement. However, only 56% have factored health care into their retirement planning, and of this group, 50% said they think they probably underestimated the true cost of health care in retirement.  Read more >
Supreme Court Rules Against Northwestern University in Fee Case
What the Supreme Court’s Northwestern Ruling Means in Practice
Class Certified in 401(k) Plan Trustees’ Lawsuit Against John Hancock
Another Stressed Union Pension to Get PBGC Support
Advisers Can Address Participant Savings Gaps With New Retirement Readiness Calculator
Sponsors Making Deliberate Enhancements to Retirement Plans
“Helping employees with their long-term financial security has emerged as a very high priority for employers,” says Tammy Hughes, senior retirement consultant at Willis Towers Watson. “With most employers now offering a DC plan as their primary retirement savings vehicle, they have become very focused on how to improve their plans and deliver better outcomes to participants. The enhancements they are making should go a long way toward encouraging greater participant savings as well as wiser investment decisions.” Read more >
Retirement Plans Give Workers a Sense of Financial Security
Among those in households with incomes between $70,000 and $150,000, 65% say they feel more secure because of workplace benefits, but this is only true for 42% of those with incomes of less than $45,000. MassMutual says this may indicate a need for more financial education in the workplace. Read more >
Market Mirror
Yesterday, the Dow climbed 399.28 points (1.58%) to 25,709.27, the NASDAQ closed 84.07 points (1.15%) higher at 7,421.46, and the S&P 500 gained 32.30 points (1.18%) to finish at 2,779.60. The Russell 2000 was up 10.15 points (0.65%) at 1,559.33, and the Wilshire 5000 increased 299.34 points (1.05%) to 28,709.44.   The prices of the 10-year Treasury note and the 30-year Treasury bond each were up 1/32, decreasing their yields to 2.863% and 3.155%, respectively.
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