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What's New from EBRI
The “retirement consumption puzzle”—The standard economic model of life-cycle consumption predicts consumption is continuous through retirement and does not drop. However, the evidence on this has been mixed, with some reports showing that households significantly reduce consumption precisely at the ages associated with retirement and others showing small or no change in household consumption following retirement. This apparent contradiction between the life-cycle model and measured behavior is referred to as “the retirement consumption puzzle.”
 
New research from EBRI, analyzing the spending patterns of a fixed group of households up to six years after their retirement, finds that average spending in retirement clearly falls in the first two years in retirement. However, it also finds that nearly half (45.9 percent) of retired households actually spent more than they did just before retirement. That declines over time, and by the sixth year of retirement, just a third (33.4 percent) spend more than they did preretirement.
 
The EBRI analysis also found that households that spent more in the first two years of retirement were not exclusively high-income households, but were distributed across all income levels. MORE.

Save the Date—EBRI’s Dec. 10 policy forum: EBRI’s 77^th biannual policy forum will be held Thursday, Dec. 10, in Washington. The half-day forum runs from 8:00 a.m. to noon, and will have three panels of experts presenting on:

• What Moves the Retirement Readiness Needle During the Accumulation Period: Quantification of Risks and Evaluation of New Proposals.
• The Cadillac Tax and the Future of Employment-Based Health Benefits
• The Impact of Likelihood of Retirement Success on DC Participant Behavior

 The event is free and you can register for it online here.
 

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EBRI in the Media

Regulatory Items
IRS:  Transitional Amendments to Satisfy the Market Rate of Return Rules for Hybrid Retirement Plans; Final regulations [as published in the Federal Register on Nov. 16, 2015 -- Effective Date: These regulations are effective on November 16, 2015. -- Applicability Date: These regulations generally apply to plan amendments made on or after September 18, 2014 (or an earlier date as elected by the taxpayer). These regulations cease to apply for amendments made on or after the first day of the first plan year that begins on or after January 1, 2017 (or, for collectively bargained plans, on or after a later date specified in the regulations).]
 
U.S. Department of Labor, Employee Benefits Security Administration:  Claims Procedure for Plans Providing Disability Benefits; Notice of proposed rulemaking [as published in the Federal Register on Nov. 18, 2015 -- Written comments should be received by the Department of Labor on or before Jan. 19, 2016.]
 
U.S. Department of Labor, Employee Benefits Security Administration:  Interpretive Bulletin Relating to State Savings Programs That Sponsor or Facilitate Plans Covered by the Employee Retirement Income Security Act of 1974; Interpretive bulletin [as published in the Federal Register on Nov. 18, 2015 -- This interpretive bulletin is effective on Nov. 18, 2015.]
 
U.S. Department of Labor, Employee Benefits Security Administration:  Savings Arrangements Established by States for Non-Governmental Employees; Proposed rule [as published in the Federal Register on Nov. 18, 2015 -- Written comments should be received by the Department of Labor on or before Jan. 19, 2016.]
 
U.S. Department of Labor, Employee Benefits Security Administration:  Fact Sheet: State Savings Programs for Non-Government Employees
 
U.S. Departments of the Treasury (IRS), Labor (EBSA), and Health & Human Services (CMS):  Final Rules for Grandfathered Plans, Preexisting Condition Exclusions, Lifetime and Annual Limits, Rescissions, Dependent Coverage, Appeals, and Patient Protections Under the Affordable Care Act; Final Rules [as published in the Federal Register on Nov. 18, 2015 -- Effective date. These final regulations are effective on Jan. 19, 2016. Applicability date. These final regulations apply to group health plans and health insurance issuers beginning on the first day of the first plan year (or, in the individual market, the first day of the first policy year) beginning on or after Jan. 1, 2017. For information on requirements applicable prior to this date, see section II.I. of this preamble.]
 

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What’s New(s)—Health & Workforce