Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
April 15th, 2016
DC Plan Q&A
DC Plan Q&A: Fiduciary and Company Functions
Defined contribution (DC) plan sponsors often find themselves playing dual roles on the retirement plan—the plan administrator that oversees the running of the plan for the sponsoring organization or company, and the plan fiduciary that works on behalf of retirement plan participants. Sponsors have to balance the decisions they make depending on which hat they are wearing.Read more >
Products, Deals and People
Lincoln Financial Group has created a new video series designed to start a dialogue around personal finance issues that women face.Read more >
The National Association of Government Defined Contribution Administrators (NAGDCA) is launching a new benchmarking service, “Perspectives in Practice,” designed to support public-sector defined contribution (DC) plans with key aspects of administration and plan performance monitoring.Read more >
MOST READ ARTICLES
1
House Committee Approves Bill Aimed at Increasing Retirement Plan Coverage
2
Employees Don’t Want ‘All or Nothing’ When It Comes to Guaranteed Lifetime Income
3
TRIVIAL PURSUITS: Residents of the Island of Misfit Toys
4
2021 Recordkeeping Survey
5
TRIVIAL PURSUITS: What do the M’s stand for in M&Ms?
Great-West Financial Introduces Great-West Investments
Great-West Financial announced the appointment of David L. Musto as the president of Great-West Investments, a newly created organization within Great-West Financial that will be the primary driver of investment and retirement income solutions for retirement savers, plan sponsors and their advisers. Great-West Financial President and CEO Robert L. Reynolds explained to PLANSPONSOR, “There were pieces throughout the organization, and the thought was to get someone of David’s caliber, background and experience to pull together all the pieces to create world-class solutions for customers.”Read more >
Wilshire Associates Incorporated announced the launch of Wilshire Omnia, “a single-platform, fully integrated solution that delivers comprehensive portfolio risk analysis, attribution and performance measurement across markets and asset classes.”Read more >
Economic Events

On a seasonally adjusted basis, the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1% in March after declining 0.2% in February, according to the Bureau of Labor Statistics. The index for all items less food and energy rose 0.1% in March after rising 0.3% in February.

Real average hourly earnings increased 0.2% in March, seasonally adjusted. Average hourly earnings increased 0.3%, and CPI-U increased 0.1%. Real average weekly earnings increased 0.2% over the month.

In the week ending April 9, the advance figure for seasonally adjusted initial claims for unemployment insurance was 253,000, a decrease of 13,000 from the previous week’s revised level, the Labor Department reported. The four-week moving average was 265,000, a decrease of 1,500 from the previous week’s revised average.

The average interest rate for a 30-year fixed-rate mortgage is 3.58%, down from 3.59% one week ago, according to Freddie Mac. The average interest rate for a 15-year fixed-rate mortgage is 2.86%, down from 2.88%.
Market Mirror

Thursday, the Dow ticked up 18.15 points (0.10%) to 17,926.43, the NASDAQ decreased by 1.53 (0.03%) to 4,945.89, and the S&P 500 was virtually unchanged (up 0.02%) at 2,082.77. The Russell 2000 decreased by 1.34 (0.12%) to 1,128.58, and the Wilshire 5000 was down 5.17 points (0.02%) at 21,464.42.

On the NYSE, 3.2 billion shares traded, with 1.3 declining issues for every advancing issue. On the NASDAQ, 2.7 billion shares changed hands, with a slight lead for decliners.

The price of the 10-year Treasury note was down 9/32, increasing its yield to 1.795%. The price of the 30-year Treasury bond decreased 12/32, bringing its yield up to 2.603%.
Compliance
Edison Wins Dismissal of Excessive Fee Suit
The 9th U.S. Circuit Court of Appeals has again affirmed dismissal of a lawsuit against Edison International over three retail-class mutual funds it added to its 401(k) plan in 1999.Read more >
An investigation conducted by the U.S. Department of Labor’s Employee Benefits Security Administration found Interactive Marketing Group failed to formally terminate a profit sharing plan after the company ceased all business operations in or before December 2014.Read more >
IRS Withdraws Some Proposed Nondiscrimination Rules
The Internal Revenue Service (IRS) has announced it will withdraw certain provisions of proposed regulations published on January 29, 2016.  Rules affecting cross-tested plans were included the proposed guidance.Read more >
Participant Education Delivery May Change With Final Fiduciary Rule
It appears that non-fiduciary investment education will still be available under the Department of Labor’s (DOL) final fiduciary rule, though with some important caveats compared with the current rules.Read more >
Investing
Monthly mutual fund flow data published by Strategic Insight (SI), an Asset International company, shows inflows of $46.7 billion to long-term mutual funds during March lifted “quarterly long-term non-VA ’40 Act fund flows” to $54.3 billion for the first quarter of 2016. Passive funds continued to drive even stronger inflows, SI finds, attracting $47.4 billion during the month and totaling $83.4 billion on the quarter.Read more >
Small Talk

ON THIS DATE: In 1817, the first American school for the deaf was opened in Hartford, Connecticut. In 1865, U.S. President Abraham Lincoln died from injuries inflicted by John Wilkes Booth. In 1892, the General Electric Co. was organized. In 1923, insulin became generally available for people suffering with diabetes. In 1947, Jackie Robinson played his first major league baseball game for the Brooklyn Dodgers. Previously he had only appeared in exhibition games. In 1952, U.S. President Harry Truman signed the official Japanese peace treaty. In 1994, the World Trade Organization was established. In 1997, Christopher Reeve received a star on the Hollywood Walk of Fame.

 

And now it’s time for FRIDAY FILES!
When you get bored waiting on first base, bust a move.Read more >
Beware of rampant monkeys.Read more >

In Coon Rapids, Minnesota, someone at a gas station next to a Burger King called police to report what appeared to be an act of vandalism. Burger King employees were using tire irons and other objects to smash out the windows of the building. When police arrived, the restaurant manager said she had just received a phone call from a man identifying himself as a fire department official who seemed to have a working knowledge of commercial fire safety systems. The caller said he could tell that “gas pressure inside the building was rising,” and warned that the restaurant was in danger of exploding unless the exterior windows were immediately broken to relieve pressure. Firefighters called to the restaurant checked the building but found no traces of leaking gas, and the incident was confirmed to have been a hoax.

In Vienna, Austria, police are acknowledging that they published a photo of U.S. actor and TV producer Peter Marc Jacobson by mistake in their search for a suspected fraudster. Jacobson is best known as the co-creator of the sitcom “The Nanny.” A police spokesman said they circulated Jacobson’s photo after it was provided by a woman who said she was defrauded of 46,000 euros (about $52,000), according to the Associated Press. He said the suspect apparently used a photo of Jacobson in a false identification document he gave the victim and “must look deceptively similar” to him.

In Concord, New Hampshire, the Works Bakery Café offered a discount this past Tuesday to women in its New Hampshire shops in honor of Equal Pay Day. The chain only charged women 79 cents on the dollar for items, while men were charged full price.

In Maryville, Tennessee, a man was detained on the campus of William Blount High School after creating a disturbance. According to the Blount County Sheriff’s Office, the man came into the vocational building around 8:40 a.m., wearing only his underwear and socks, and tried to tear the fire alarm off the wall. According to the local NBC News station, witnesses said the man claimed there were smurfs inside the device. He was taken to Blount Memorial Hospital for a mental evaluation.

Have a wonderful weekend, everyone!
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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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