Asset Allocations of Recently Hired Participants: How are newly hired workers investing their 401(k) savings? Compared to recently hired participants in the past, they are investing much more into balanced and target-date funds, according to the EBRI/ICI 401(k) database, the largest of its kind.

Specifically, the EBRI/ICI 401(k) database shows that recently hired participants in 2014 (those with two or fewer years of tenure) tended to be more likely to hold balanced funds compared with recent hires in the past. About two-thirds of recently hired 401(k) plan participants from 2011 through 2014 held balanced funds, compared with less than half in 2006, and one-third in 2002.

At year-end 2014, 59 percent of recently hired 401(k) participants held target-date funds, while 12 percent held non–target-date balanced funds, and 4 percent held both target-date and non–target-date balanced funds.

Among those who held balanced funds, recently hired participants in 2014 were more likely to hold a high concentration of their accounts in balanced funds compared with past years. At year-end 2014, 79 percent of recently hired participants holding balanced funds had more than 90 percent of their account balance invested in balanced funds, compared with 77 percent in 2013, 61 percent in 2009, 43 percent in 2006, and 7 percent in 1998. MORE. 

Sept. 7 - Jack VanDerhei, Financial Security Research Symposium (a one-day symposium presented by the Social Security Administration in partnership with U.S. Treasury), Washington, DC -- Panel topic: “Other Sources of Financial Security” - [Note: Four panels of academic, institutional, and government experts will address issues surrounding financial preparedness and retirement security.]

Sept. 26 - Paul Fronstin, Mid-Sized Retirement & Healthcare Plan Management Conference, University Conference Services, Las Vegas, NV -- Topic: “The Future of Employment-Based Health Benefits”

Nov. 9 - Paul Fronstin, Patient-Centered Primary Care Collaborative, Washington, DC -- Topic: “Addressing Percent Spend on Primary Care”
 

ABD Insurance & Financial Services:  “Compliance Alert - ERISA Non-Compliance Just Became More Costly (and the DOL has Proposed to Make Compliance More Complicated)”

International Foundation of Employee Benefit Plans:  “More Threads to Weave Into the Wellness Incentive Compliance Tapestry”

IRS:  “ACA and Employers: Understanding the Terms Affordable and Minimum Value Coverage” [IRS Health Care Tax Tip 2016-65, August 17, 2016]

Willis Towers Watson Insider:  “Government proposes rules for employer opt-out payments under ACA”

Xerox Corporation [Blog]:  “Health Savings Accounts: Withdrawals”