Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
April 24th, 2019
Webcast Event
Fiduciary Focus: Is 401(k) Loan Risk on Your Radar?
Do plan sponsors have a false sense of security about the fiduciary risks of 401(k) loans? Under ERISA, participant loans must be managed with the same prudence and oversight required of any plan investment. However, according to academic and industry studies, loans default at alarming rates, especially when participants lose their jobs. Read more >
Ask the Experts
Vesting Rules for Governmental and Church Plans
“I read in a past Ask the Experts column that special pre-ERISA vesting rules apply to governmental and church retirement plans, but the Experts did not state what those rules are. Can the Experts elaborate?” Read more >
MOST READ ARTICLES
1
J.P. Morgan Agrees to Settle Stable Value Funds Suit
2
SECURE Act Passes House, Bringing Calls for Senate Collaboration
3
Individuals, Employers and Government All Play a Part in Retirement Readiness
4
Participant Loans: A Fiduciary Storm Brewing?
5
What to Know About Financial Audits Filed with Form 5500s
Economic Events

Sales of new single‐family houses in March were at a seasonally adjusted annual rate of 692,000, according to estimates released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 4.5% above the revised February rate of 662,000 and is 3.0% above the March 2018 estimate of 672,000.

Market Mirror

Tuesday, the Dow gained 145.34 points (0.55%) to finish at 26,656.39, the NASDAQ closed 105.56 points (1.32%) higher at 8,120.82, and the S&P 500 increased 25.71 points (0.88%) to 2,933.68. The Russell 2000 was up 25.05 points (1.61%) at 1,585.09, and the Wilshire 5000 climbed 290.64 points (0.97%) to 30,300.67.

The price of the 10-year Treasury note was up 7/32, decreasing its yield to 2.565%. The price of the 30-year Treasury bond increased 8/32, bringing its yield down to 2.980%.

Compliance
BTG International Subject to ERISA Revenue Sharing Suit
The complaint suggests defendants “larded the plan with excessively expensive sub-advised accounts” that paid excessive fees to the recordkeeper John Hancock. Read more >
Settlement Details Provided in Vanderbilt 403(b) Plan Lawsuit
Aside from monetary relief, the settlement calls for Vanderbilt to issue a request for proposals (RFP) for a new recordkeeper and stipulates factors to consider when evaluating funds in the 403(b) plan’s investment menu. Read more >
From the Magazine
Delegating Tasks to a 3(16) Administrator Can Keep a Plan ‘Clean'
Over the past several years, many third-party administrators (TPAs) have marketed themselves as willing to be 3(16) fiduciary plan administrators for plan sponsors. Brian Furgala, director of ERISA Services at Wolters Kluwer Legal & Regulatory U.S. in Orlando, Florida, says some TPAs that take on 3(16) fiduciary duties will perform all administrative tasks. Still, Furgala says, it is rare that a TPA will take on all administration. It is more common for a designated 3(16) plan administrator to shoulder a portion of those tasks. Read more >
Investing
Analysis Shows Importance of DC Plan Fund Menu Monitoring
An analysis from Morningstar suggests monitoring defined contribution (DC) plan fund menus can have a positive impact on performance, and investment management providers weigh in on how to determine when a fund change is needed. Read more >
Small Talk
A majority of office workers grade their job a B-, but women scored their office jobs a full letter grade lower than their male counterparts in topics like potential for internal growth, company morale and benefits, a survey found. The biggest weaknesses of the average office job, according to all respondents, are communication (31%), employee retention (31%) and staff diversity/inclusion (28%). Read more >

ON THIS DATE: In 1800, the Library of Congress was established with a $5,000 allocation. In 1877, in the U.S., federal troops were ordered out of New Orleans. This was the end to the North’s post-Civil War rule in the South. In 1889, the Edison General Electric Company was organized. In 1898, Spain declared war on the U.S., rejecting America’s ultimatum for Spain to withdraw from Cuba. In 1953, Winston Churchill was knighted by Queen Elizabeth II. In 1961, Sandy Koufax of the Los Angeles Dodgers struck out 18 batters becoming the first major-league pitcher to do so on two different occasions. In 1997, the Senate ratified the Chemical Weapons Convention. The global treaty banned the development, production, storage and use of chemical weapons.

WEDNESDAY WISDOM: “Without wearing any mask we are conscious of, we have a special face for each friend.”—Oliver Wendell Holmes, Sr., American physician and poet

Share the news with a friend! Pass the NewsDash along and tell your friends/associates they can sign up for their own copy. Read more >

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

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

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