PLANSPONSOR Weekend Newsdash
Week ending August 11th, 2017
NOTE FROM THE EDITOR
Happy Friday, readers! This week’s news roundup features articles on investing. Active fixed-income allocations are moving into risky territory. Corporate funds posted the highest returns among institutional investors in the second quarter. While usage of Roth 401(k)s is still quite small, at 13%, the popularity of Roth 401(k)s is growing. Some plan sponsors are using both target-date funds and managed accounts as their qualified default investment alternative, moving older investors into the managed accounts. While managed accounts are customized for each participant, experts say they can be benchmarked against participant’s goals, such as when they want to retire or how much they want to save. We hope you find our coverage helpful and informative.
Editor's choice
Investing
False Sense of Security Surrounds Active Fixed-Income Allocations
Experts with Charles Schwab warn that a decade of generally stable credit markets has some investors feeling a false sense of security about “stretching for yield” within near retirees’ target-date funds. Read more >
Investing
Corporate Funds Post Highest Returns Among Institutional Investors in Q2 2017
Corporate funds saw a quarterly gain of 3.13%, compared to a median return of 2.88% for all plan types, according to the Wilshire TUCS. Read more >
Investing
Thirteen Percent of Workers Are Saving in a Roth 401(k)
This is up from 8% in 2011.   Read more >
Investing
Hybrid QDIAs Can Help Preserve Retirement Income
DC plan sponsor clients can leverage both TDFs and managed accounts together to maximize outcomes. Read more >
Investing
Benchmarking Managed Accounts Against Participant Goals
Some industry experts believe managed account performance should not be benchmarked against an index but instead against an investor’s unique individual goals. Read more >
MOST POPULAR STORIES
Tax Bill Passed By Senate Backs Off 457(b), 403(b) Plan Changes

It appears some last-minute amendments have largely removed controversial provisions from the Senate’s version of tax reform legislation that would have had a big impact on governmental 457 and nonprofit 403(b) plan sponsors.

Pass-Through Tax Reform Impact on Small Businesses May Be Mitigated via Roth

The American Retirement Association says that tax reform could be a disincentive for small businesses to offer retirement plans; however, as one reader shares, there are counter considerations having to do with Roth 401(k) options that could mitigate some of the concern.

Settlement Ends Fujitsu Lawsuit Filed Over Plan Fees, Custom TDFs

In their lawsuit, the plaintiffs called the Fujitsu plan one of the most expensive in the country and specifically called out the design and implementation of the plan’s custom target-date funds.

Congressional Democrats Continue Push on Butch Lewis Act

The legislation would take steps to provide additional anti-cutback protections for Teamsters, miners, and other unionized American workers who have paid significant sums into multiemployer pension funds.

Education on Lifetime Income Needed in Not-for-Profit Sector
In-plan lifetime income options can secure certain benefits participants may not find in retail solutions, suggests a new study by TIAA.

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

Advertising: Paul Zampitella paul.zampitella@strategic-i.com

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