The Real Story Behind the Departure of Bill Gross From PIMCO
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In This Issue
General Items The Real Story Behind the Departure of Bill Gross From PIMCO Summary: Bill Gross is largely an introvert who, for 40 years, has had to play the extrovert. Just a guy with a start-up in California in 1971, Gross’s face and voice is pervasive in the media, on TV and in conferences. What little extrovert pose that was left in him got sucked out by PIMCO management duties. Now Gross can go back to a role that allows him to more safely retreat to his own mind. Source: Riabiz.com Advisers 'Blindsided' by Gross Departure as PIMCO Faces Rebuilding Summary: Bond behemoth has opportunity to recast its image, but analysts and advisers predict significant outflows. Several advisers described themselves as having been blindsided by the announcement, and suggest Gross' departure brings the future of PIMCO's funds into question. Source: Investmentnews.com (free registration may be required) What 'Bond King' Move Means for Plan Clients Summary: The firm's flagship bond fund, Total Return, was shedding noteworthy amounts of assets each month under Bill Gross' oversight, which continued for a straight year and a half before Gross announced on Friday his departure from the firm he founded in 1971. The question is, how will retirement plan sponsors and participants be impacted by Gross' departure? Source: Planadviser.com Low Grades for Benefits Education Summary: With a new survey finding only a third of employees happy with the level of benefits education provided by their employers, experts offer ways HR leaders can better inform their workforces about making the best benefits choices for their needs. Source: Hreonline.com
Fiduciary and Plan Governance Material Summary: Most public companies offer a company stock fund investment option under their 401k plans and non-qualified excess 401k plans. On September 10, the SEC announced enforcement actions against 34 companies and insiders (directors, officers, and 10% owners) for failing to file timely reports for stock transactions. The enforcement actions came without warning, after more than a decade of little or no SEC enforcement in this area. Source: Winston.com Party-in-Interest Transactions Controls for Benefit Plans Summary: With regulators focused more than ever on a plan's controls, it is imperative that plan sponsors have the proper procedures and controls in place. This article looks at controls for party-in-interest transactions. Source: Mcgladrey.com
Insight: Studies, Research and White Papers Designing Balanced DC Menus: Considering Capital Preservation Strategies Summary: DC plan sponsors face a challenge in selecting capital preservation strategies, which seek to preserve invested principal. Recent money market fund reforms will likely stress yields, which already are negative in real terms, and while many stable value strategies historically have provided attractive returns, not all plan sponsors can avail themselves of this option. Paper suggests that a customized and actively managed low-risk bond strategy may offer an attractive capital preservation-focused solution. Source: Pimco.com Effectively Incorporating Emerging Markets Strategies in Retirement Plan Lineups Summary: Often times, defined contribution plans may offer an overly simplified investment lineup with the best of intentions. By comparison, trustees of defined benefit plans typically have separate allocations for each of these areas. Investors in defined contribution plans without appropriate diversification to these and other areas may not be adequately positioned for growth and may lose out on returns over time. Source: Calamos.com Which Employees Are Delaying Retirement and Why? Summary: Retirement patterns are changing in the U.S. and in many other countries as well. During the mid-to-late 20th century, labor force participation rates dropped for older workers and rose for younger ones. These trends have recently reversed, especially among men and younger workers. This article reviews these shifts. Source: Towerswatson.com
Issue of Lifetime Income Creating Sustainable Retirement Income in 401k Plans Using Managed Risk Funds Summary: One approach for plan committees seeking ways to help their participants accumulate adequate sustainable retirement income is to offer managed risk funds as a designated investment alternative. Such funds are designed to permit participants to maintain exposure to equity investments while also stabilizing volatility and reducing the potentially devastating effects of sequence-of-returns risk. Source: Milliman.com Summary: When interest rates eventually rise, and as longevity annuity pricing becomes more competitive, the payout rates for longevity annuities will likely rise as well... and the new Treasury Regulations do at least open the door to longevity annuities inside of retirement accounts if they eventually become more compelling. Source: Kitces.com
Compliance and Regulatory Related Retirement Plan Reporting and Disclosure Requirements Summary: This 12 page Reporting and Disclosure Guide for Employee Benefit Plans was prepared by the IRS as a quick reference tool for certain basic reporting and disclosure requirements for retirement plans under the Internal Revenue Code and provisions of ERISA. It is not an exhaustive list, but still helpful. Source: Irs.gov IRS Issues Proposed Rules on Allocation of After-tax Amounts from Roth Accounts Summary: The IRS issued proposed rules that would remove the current allocation rule and treat distributions from a Roth account made to multiple destinations as a single distribution beginning on January 1, 2015. In conjunction, the IRS issued Notice 2014-54 which explains the new allocation rules for after-tax and pre-tax amounts. Source: Practicallaw.com Make Your Retirement Plan an Anti-Fraud Control Summary: According to the most recent Association of Certified Fraud Examiners report, fraud can represent approximately five percent of a company revenue annually. Fraud could be a significant charge to the bottom line. This video offers an idea on how your retirement plan can be an anti-fraud control. Source: Erisasunscreen.com Long-Awaited Hybrid Plan Rules Issued, Along With Accompanying Transition Relief Summary: The Treasury Department and the IRS issued long-awaited final regulations on hybrid retirement plans, providing guidance regarding certain issues that weren't addressed in the 2010 final rules. Source: Bna.com Summary: Under its revenue laws, Florida imposes a document tax on loan transactions that are made, signed, executed, issued, or otherwise transacted in the State. The Florida Department of Revenue has specifically ruled that 401k plan loans are subject to the tax. The law further provides that no state court may enforce the provisions of a promissory note if the document tax is not paid. Source: Benefitsbryancave.com
Marketplace News Bill Gross Leaves PIMCO; Daniel Ivascyn New CIO Matrix Partners With NAPA and SCS to Expand Advisor Education Kris Krikorian Joins Pentegra as Regional Director Industry Veteran Joins CUNA Mutual Retirement Solutions PSCA Announces the Winners of the 2014 Signature Awards Firm to Launch Online 401k Management Tool
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