A digest of timely information and insight about finance, investing and retirement

Congress to delay ACA’s ‘Cadillac’ tax on pricey health plans until 2020 | Washington Post

A decision by Congress to defer a new tax on expensive employer health plans, the first major change that lawmakers have made to the Affordable Care Act since its passage, would cost the government an estimated $9 billion.

The two-year postponement in what has been dubbed the “Cadillac tax,” because it applies to high-priced insurance, is the most significant of three changes to ACA taxes woven into a Congressional budget package.

Readers’ picks in 2015 | Squared Away Blog

Though the Squared Away blog covers everything from student loans to helping low-income people improve their lot, the articles with the most reader traffic over the past year were dominated by one topic: retirement.

The Fed raised interest rates so what happens next? | NPR

The Federal Reserve raised interest rates earlier in December, something it had not done since 2006. The long-awaited action was so well advertised that much of the market reaction actually occurred in advance.

Pushing aside 401(k)s for mandatory savings plans | The New York Times

As most private employers have abandoned traditional pensions and replaced them with self-financed retirement accounts, many Americans are not saving enough to ensure a comfortable retirement.

One solution could be Guaranteed Retirement Accounts. The president of Blackstone, the giant private equity firm, is teaming up with a labor economist and professor at the New School for Social Research to push such a government-sponsored plan that would require participation and contributions from any employer without its own 401(k).

Plan return comparison highlights DB outperformance | PlanSponsor

Defined benefit (DB) plan investment returns outperformed 401(k)s, according to a new study from the Center for Retirement Research at Boston College. Looking at investment returns by plan type from 1990 to 2012, the study found an average difference of 0.70 percent a year, even after controlling for plan size and asset allocation.

One major reason is higher fees. And much of the money accumulated in 401(k)s eventually is rolled over to IRAs, which earn even lower returns.