The Big Picture: Trends in Defined Contribution Plans
Investors in 401(k) plans may not be saving enough for retirement, on average, but they’re saving more than headline numbers would suggest. In a wide-ranging panel discussion at the 2013 SVIA Fall Forum, Elizabeth Heffernan, vice president of investment product management at Fidelity Investments, said the average account balance in plans for which Fidelity provides […]
Shields Says Income Inequality Could Be “Sleeper Issue” of 2016 Election
There are plenty of issues that could define the 2016 presidential election. Republicans and Democrats could still be fighting about taxes and spending, foreign policy, and even healthcare. But nationally known columnist and political commentator Mark Shields says that income equality could be the issue that determines who will occupy the White House next. According […]
Evaluating Fiduciary Risks
Over the past decade, the retirement plan industry has been subject to a wave of litigation under the Employee Retirement Income Security Act. Allegations have included breaches of fiduciary duty in connection with excessive fees for both investment management and record-keeping services. In a presentation at the 2013 SVIA Fall Forum, Jeremy Blumenfeld, a partner […]
Stable Value Roundtable
What’s happening in the stable value market? Seven experts from diverse sectors of the industry brought participants at the 2013 SVIA Fall Forum up to speed during a lively roundtable discussion in Washington, D.C. Among the highlights: Wrap diversification: A preference for having multiple wrap contract providers for a stable value fund still persists among […]
Building an Optimal Investment Lineup for a Defined Contribution Plan
Are you a plan sponsor or consultant looking to create a great investment lineup for a defined contribution plan? David Blanchett, head of retirement research for Morningstar Investment Management, offers this advice: Don’t start with a goal of building the best lineup possible. Instead, start with your end point in mind: building the lineup that […]
Columnist Sees “Crescendo of Errors” in Washington
The political divisiveness that has characterized Washington, D.C. over the past few years reached new highs in October 2013, first when Congress allowed the federal government to shut down, and then when it came perilously close to allowing the U.S. to default on its debt. To Michael Barone, syndicated columnist and senior political analyst with […]
Potential Regulatory Changes Cloud Outlook at Front End of Yield Curve
The front end of the yield curve—home to conservative investments such as money market funds, short-term investment funds (STIFs), and even stable value—has been challenging for the past few years, not just for individual investors, but for institutions as well, including corporate sponsors of defined contribution plans. Corporations have record amounts of cash on their […]
Wells Fargo Economist Sees US Consumer Spending in Seventh Inning of Rebound
The U.S. still hasn’t recovered fully from the Great Recession of 2008-2009, but it’s getting closer. Jay Bryson, managing director and global economist for Wells Fargo, told participants at the 2013 SVIA Fall Forum that he foresees real U.S. gross domestic product growing by about 2.5 percent in 2014 and 2.75 percent in 2015. That […]
How United Technologies Revamped its 401(k) Plan
Plenty of employers offer 401(k) plans because it seems like a good idea. Maybe the competition does it. Maybe employees like them. Perhaps the boss wants one. United Technologies Corp., a global manufacturer that generated $57.7 billion in revenue in 2012, has bigger ambitions for its 401(k). As Kevin Hanney, the company’s director of defined […]
