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401(k) Inventor Offers New Way for Employers to Reward and Incentivize Employees

"Ted Benna, the 'Father of the 401(k),' is pushing a new incentive plan employers could offer rank-and-file employees.... [M]oney put into it, exclusively by employers, would grow tax-deferred much like a 401(k).... Employers would reward workers a flat-dollar amount or a percentage of compensation to the account ... [T]he minimum amount that can be withdrawn is $500 and only one withdrawal per year is permitted."

Retirement Plans Retreat from Active Funds, Flock to Investment Trusts

"Assets in collective investment trusts, or CITs, run by T. Rowe Price Group Inc soared 54 percent last year to $88.9 billion. And assets in 16 CITs managed by Fidelity Investments rose 31 percent to $85.6 billion ... The trend reflects a broader shift of money from more expensive funds run by stock-pickers to cheaper options that passively track indexes. Actively managed funds suffered $207.5 billion in net withdrawals across the United States last year[.]"

Average Retirement Balance Hits Record on 401(k) 'Autopilot'

"The average balance in a 401(k) defined-contribution account at Fidelity Investments hit a record $95,500 in the first quarter, up more than 9 percent from a year earlier ... 27 percent of workers in a Fidelity plan increased their contributions, as a percentage of their salaries, over the past 12 months.... In the first quarter, 68 percent of the rise in savings rates of workers under age 30 was due to automated increases[.]"

How Much Cash Would It Take to Get You to Delay Retirement?

"[Researchers] assigned an 'approximate actuarially fair' dollar amount of $60,000 to the value of waiting four years after people could first claim -- so, until age 66 -- to apply for their benefit. The researchers asked people between the ages of 50 and 70 to assume they were 62, single, and could afford to wait to claim.... Thirty-four percent said they'd take less than $60,000 if they didn't have to work during the wait; the average amount was $53,711. It fell to 30 percent if they had to work half-time during the wait, and the average dollar amount required to wait went up to $61,406."

Is the Government Trying to Create 'Obamacare for Your 401(k)'?

"Many see [the proposed DOL rule] as another government overreach that assumes we're too dense to sensibly navigate our accounts without federal hand-holding, giving rise to the moniker 'Obamacare for your 401(k).' Then again, many who see it that way are in the finance industry and have a clear stake in government keeping its hands off."

Supreme Court Halts ACA Contraception Mandate in Pennsylvania Case

"[Justice] Alito's order halted a February ruling from the [Third Circuit] that decided the opt-out form didn't stop the nonprofits from exercising their religion.... Justices will consider a similar case during a conference next week, which concerns Catholic charities from Tennessee and Michigan ... Last month, the Supreme Court struck down a lower court's ruling requiring the University of Notre Dame to follow the birth control mandate." [Zubik v. Burwell, No. 14A106 (U.S. Apr. 15, 2015)]

Secrecy in Pension Investments Triggers Legislative Brawl in North Carolina

"A legislative fight between North Carolina Treasurer Janet Cowell and a state employee association is signaling growing tension over disclosure practices as public pensions seek to improve returns with alternative investments.... North Carolina has about $18.7 billion of alternative investments, or 21.5 percent of its assets.... The pension lagged behind both of its benchmarks for private equity and hedge funds for the past 10 years ... [T]he state paid $416.2 million to firms hired to manage pension money last fiscal year, according to its annual report. A footnote says that it didn't disclose all fees[.]"

401(k) Contributions Will Be Cash-Flow Negative in 2016

"[Cerulli Associates] estimates ... that $300 billion flowed into the system in 2012 while $276 billion flowed out as cash, as retirees made withdrawals or rolled over funds into IRAs. By 2016, inflows will increase to $364 billion, but outflows will increase to $366 billion Fund managers will face greater competition as workers role 401(k) funds into IRAs."

New York Catholic Organizations Win Court Challenge to Obamacare Contraception Mandate

"[Federal district court Judge Brian] Cogan barred the government from enforcing the mandate against Catholic Health Care System, Catholic Health Services of Long Island, Cardinal Spellman High School and Monsignor Farrell High School.... The U.S. [had] issued a rule exempting the archdiocese [itself], but schools and health-care affiliates were still subject to the law, which takes effect Jan. 1. Cogan wrote: The groups 'have demonstrated that the mandate, despite accommodation, compels them to perform acts that are contrary to their religion... And there can be no doubt that the coercive pressure here is substantial.'" [Roman Catholic Archdiocese of New York et al. v. Sebelius, 12 Civ. 2542 (E.D.N.Y. Dec. 16, 2013)]

401(k) Salary Deferrals: Better as Single-Sum, or Divided Per-Paycheck?

"If your plan allows you to max out with one contribution or just a few over several pay periods -- and still get your full match -- well, then, putting your money to work sooner than later is likely a wise move, particularly if you have a bullish outlook for the year. But you may find restrictions or drawbacks at the plan level. Seventy-one percent of employers issue their match on a payroll basis, calculating it as a percentage of your compensation during that payroll period[.]"