Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
April 26th, 2017
Benefits & Administration
Analysis Explores What Works Well for Public Pension Reporting
As employees, policy makers, the media, taxpayers, and other stakeholder groups continue to navigate the changing public pension landscape, the importance of complete and timely pension reporting and communication continues to increase, according to the Center for State and Local Government Excellence. An analysis found certain themes surface with regard to public pension systems that have developed robust communication and financial reporting initiatives. Read more >
Nearly Three in 10 Parents Jeopardize Retirement for Student Loan Debt
Among parents surveyed by Student Loan Hero, nearly three in 10 (27%) say they have withdrawn from retirement savings to help cover student loan payments. Thirteen percent indicate this was for their own student loan debt, 10% for a child or children’s student loan debt, and 4% for both. The survey also reveals that a majority of parents are unaware of options that can help. Read more >
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Employers Encouraged to Offer Multi-Dimensional Wellness Programs
Ask the Experts
Differing ‘Year of Service’ Definitions for Different Plan Provisions
“Our recordkeeper for our Employee Retirement Income Security Act (ERISA) 403(b) plan recently informed me that our plan document year of service definition is different for satisfying our one-year waiting period to receive employer contributions than it is for vesting purposes. Why are the definitions different? Would it not make more sense for the definitions to be the same, thus making the provisions easier to administer?” Read more >
Economic Events

The Conference
Board Consumer Confidence Index, which had increased in March, declined in
April. The Index now stands at 120.3 (1985=100), down from 124.9 in March. The
Present Situation Index decreased from 143.9 to 140.6 and the Expectations
Index declined from 112.3 last month to 106.7.

Market Mirror

Tuesday, the Dow climbed 232.23 points (1.12%) to 20,996.12,
the NASDAQ closed 41.67 points (0.70%) higher at 6,025.49, and the S&P 500
increased 14.46 points (0.61%) to 2,388.61. The Russell 2000 was up 13.13
points (0.94%) at 1,411.07, and the Wilshire 5000 gained 161.07 points (0.65%)
to finish at 24,943.40.

On the NYSE, 3.1 billion shares changed hands, and on the
NASDAQ, 3.0 billion shares traded, with advancing issues outnumbering declining
issues by 2 to 1 on both exchanges.

The price of the 10-year Treasury note decreased 17/32,
bringing its yield up to 2.334%. The price of the 30-year Treasury bond fell 1
4/32, increasing its yield to 2.987%.

Compliance
DOL Fiduciary Rule ‘Transition Period’ Will Pose Challenges
While the Department of Labor has signaled it could do another delay of the fiduciary rule prior to June 9, the more likely course is that it will in fact be implemented. Read more >
Adviser Dismissed From BB&T Self-Dealing Litigation
Often when a retirement plan participant files suit against a plan sponsor, investment manager or recordkeeper, the advisory firm gets dragged in as well. This was the case in Bowers vs. BB&T, a lawsuit filed initially in 2015 in the U.S. District Court for the Middle District of North Carolina. The second amended complaint calls outs Cardinal Investment Advisors for its role as consultant and the services it provides to the BB&T compensation committee. “While perhaps the plaintiffs have arguably alleged facts to support the claim that Cardinal had some fiduciary responsibilities, there are no facts alleged indicating that it was a fiduciary with respect to the particular activities at issue, some of which occurred before Cardinal even had a relationship with BB&T,” the decision to dismiss Cardinal as a defendant states. Read more >
Small Talk
Two-thirds (66%) of workers surveyed by staffing firm OfficeTeam said they’d likely leave their job if they didn’t feel appreciated. That’s up from 51% who responded that way in 2012. Employees polled were asked to recount the strangest form of recognition they’ve received at work, as well as the best form of recognition. Read more >

ON THIS DATE: In 1514, Copernicus made his first observations of Saturn. In 1607, the British established an American colony at Cape Henry, Virginia. It was the first permanent English establishment in the Western Hemisphere. In 1819, the first Odd Fellows lodge in the U.S. was established in Baltimore, Maryland. In 1865, Joseph E. Johnston surrendered the Army of Tennessee to Sherman during the American Civil War. In 1865, John Wilkes Booth was killed by the U.S. Federal Cavalry. In 1921, weather broadcasts were heard for the first time on radio in St. Louis, Missouri. In 1941, an organ was played at a baseball stadium for the first time in Chicago. In 1986, the world’s worst nuclear disaster to date occurred at Chernobyl, in Kiev. Thirty-one people died in the incident and thousands more were exposed to radioactive material.

 

WEDNESDAY WISDOM: “Facts do not cease to exist because they are ignored.”—Aldous Huxley, English writer

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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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