Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
May 31st, 2017
Benefits & Administration
Cost-Saving Models for Employers With Self-Insured Health Plans
A consulting firm outlines three alternatives it has recommended to its partner companies in an effort to manage their employees’ health care in a cost-effective manner. Read more >
Continuing Public Pension Reforms Could Hurt the Economy
In the wake of the financial crisis of 2008, public pension plans made several reforms, including benefit cuts, and increases in the age and tenure required to claim benefits. And, some state and local governments have contemplated moving to a defined contribution (DC) plan structure. A report from the National Conference on Public Employee Retirement Systems (NCPERS) suggests that if these reforms continue, it will result in economic losses. NCPERS contends that lawmakers do not understand how public pensions work. Read more >
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1
House Committee Advances Bill to Establish Union Pension Lifeline Program
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The Senate Math That Could Block SECURE Act
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Adidas Sued Over Excessive Fees for 401(k) Participants
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Open MEPs Not for Every Plan Sponsor
5
(b)lines Ask the Experts – Proper Delivery Method for SPDs
Products, Deals and People
Wells Fargo Advisors Focuses on T-Shares for Retirement Clients
The move to T-shares for retirement accounts is expected to help advisers and clients working with the brokerage firm meet the requirements of the strict new conflict of interest regulations. Read more >
Economic Events

The Conference Board Consumer Confidence Index, which had decreased in April, declined slightly in May. The Index now stands at 117.9 (1985=100), down from 119.4 in April. The Present Situation Index increased marginally from 140.3 to 140.7, while the Expectations Index declined from 105.4 last month to 102.6 in May. 

Market Mirror

Tuesday, the Dow closed 50.81 points (0.24%) lower at 21,029.47, the NASDAQ was down 7.00 points (0.11%) at 6,203.19, and the S&P 500 decreased 2.91 points (0.12%) to 2,412.91. The Russell 2000 fell 11.05 points (0.80%) to 1,371.19, and the Wilshire 5000 lost 53.70 points (0.21%) to finish at 25,053.41.

The price of the 10-year Treasury note increased 11/32, bringing its yield down to 2.212%. The price of the 30-year Treasury bond climbed 22/32, decreasing its yield to 2.880%.

Compliance
United of Omaha Faces Lawsuit Over GICs
The lawsuit charges that the crediting rate United of Omaha set for guaranteed investment contracts (GICs) allowed it to receive excessive compensation. Read more >
Ask the Experts
“I read with great interest a recent Ask the Experts column in which you discussed the differences between governmental 457(b) plans and those sponsored by private tax-exempt entities. I work for a faith-based university whose plan qualifies as a church plan. Should I be following the rules for governmental plans, or those for private tax-exempts?” Read more >
Investing
Plan Sponsors Should Not Have Concerns About Adopting CITs
The lower cost of collective investment trusts (CITs) is attracting the attention of plan sponsors, retirement executives say. Compared to mutual funds, CITs are priced 10 to 30 basis points lower, according to a DST white paper, “Collective Investment Trusts—A Perfect Storm.” Concerns about difficulties setting up CITs are being addressed, and the concern that CITs have a tracking error against their benchmarks is over stated. Read more >
Small Talk
Two surveys show many employees check in with work during vacation time. One survey shows workers are burned out and need vacation, and both reveal why employees refuse to totally disconnect. Read more >

ON THIS DATE: In 1859, in London, Big Ben went into operation. In 1870, E.J. DeSemdt patented asphalt. In 1879, New York’s Madison Square Garden opened. In 1884, Dr. John Harvey Kellogg patented “flaked cereal.” In 1907, the first taxis arrived in New York City. They were the first in the United States. In 1909, the National Association for the Advancement of Colored People (NAACP) held its first conference. In 1913, the 17th Amendment went into effect. It provided for popular election of U.S. senators. In 1941, the first issue of “Parade: The Weekly Picture Newspaper” went on sale. In 1955, the U.S. Supreme Court ordered that all states must end racial segregation “with all deliberate speed.” In 1977, the trans-Alaska oil pipeline was finished after three years of construction. In 1994, the U.S. announced it was no longer aiming long-range nuclear missiles at targets in the former Soviet Union. In 2003, in North Carolina, Eric Robert Rudolph was captured. He had been on the FBI’s 10 Most Wanted list for five years for several bombings including the 1996 Olympic bombing.

 

WEDNESDAY WISDOM: “All you need is love. But a little chocolate now and then doesn’t hurt.”—Charles M. Schulz, cartoonist best known for the “Peanuts” comic strip

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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

Advertising: Paul Zampitella paul.zampitella@strategic-i.com

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