Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
April 26th, 2018
2018 PLANSPONSOR National Conference
At the PLANSPONSOR National Conference in June, plan sponsors, retirement plan advisers and providers that support plans and participants will meet and engage in dialog with legislative, legal and policy thought leaders. Our opening keynote speaker is Nicholas Epley, Professor of Behavioral Science, University of Chicago Booth School of Business and author of “Mindwise: How We Understand What Others Think, Believe, Feel, and Want.” Epley conducts research on the experimental study of social cognition, perspective taking and intuitive human judgment. “Most people are intuitive psychologists in their daily lives—wondering why people think or behave as they do. I just happened to find a profession that enables me to answer these questions for a living,” explains Epley. In his book, Epley introduces what scientists have learned about our abilities to understand the most complicated puzzle on the planet—other people—and the surprising mistakes we so routinely make. Register now to learn strategies for maximizing retirement plan outcomes and managing fiduciary liability. Read more >
Benefits & Administration
Certain Factors Critical to Wellness Program Engagement
Integrating and simplifying benefits programs and the human touch enhances engagement in employee wellness programs, according to a survey of large employers. Read more >
Products, Deals and People
Vanguard Announces Enhancements to DC and NQ Plan Service Offerings
In addition to a new retirement readiness tool that offers an aggregate picture of retirement savings, Vanguard has partnered with TD Ameritrade for a new brokerage account option and has partnered with the Newport Group for non-qualified plan administration. Read more >
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Yale Sued Over Wellness Program ‘Penalty’
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Employees in Two States Miss Out on One HSA Benefit
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Some Help for Women’s Retirement Savings Gap May Be Coming
Market Mirror

Wednesday, the Dow closed 59.70 points lower (0.25%) at 24,083.83, the NASDAQ was down 3.62 points (0.05%) at 7,003.74, and the S&P 500 increased 4.84 points (0.18%) to 2,639.40. The Russell 2000 decreased 2.81 points (0.18%) to 1,550.47, and the Wilshire 5000 was up 24.90 points (0.09%) at 27,446.06.

 

The price of the 10-year Treasury note was down 7/32, increasing its yield to 3.029%. The price of the 30-year Treasury bond decreased 17/32, bringing its yield up to 3.212%.

Sponsored message from Wells Fargo
Minds, Hearts, and Souls: ESG as a Catalyst for Plan Success
New research: Actions you can take to meet the changing ESG needs of your participants. Read more >
Compliance
Court Affirms DB Plan Sponsor Owes Excise Taxes on Non-Deductible Contributions
A federal appellate court agreed with the Commissioner of Internal Revenue that Pizza Pro Equipment Leasing incorrectly calculated the limitation on the plan’s annual benefit and therefore made non-deductible contributions to the plan. Read more >
Judge Rules on DOL ESOP Challenge with Mixed Results
The Department of Labor (DOL) lawsuit alleges the defendants failed to protect the assets of the plan as it purchased nearly $21 million in company shares from an executive of Sentry Equipment Erectors Inc., who was also a trustee of the firm’s Employee Stock Ownership Plan (ESOP). The firm’s executive Adam Vinoskey and several other defendants are called out by name for fiduciary violations relating to the sale of company stock to the ESOP at an inflated price in 2010. The overpayment, according to DOL, caused a direct loss to the plan and constituted a prohibited transaction under the Employee Retirement Income Security Act (ERISA). DOL investigators also sought to prove the sale directly injured plan participants who had already earned Sentry stock, as the value of their stock declined because of the company’s substantially increased debt load. The mixed decision comes after DOL Secretary Alexander Acosta moved for summary judgment on these claims. The defendants responded by moving to exclude key testimony from a DOL expert on the doctrine of “adequate consideration,” crucial to the settlement of this matter. Additionally, some of the defendants have individually moved for summary judgment—to be carved out of the lawsuit for not in fact being fiduciaries. Read more >
Investing
Charles Schwab Experts Debunk Passive TDF Myths
A target-date fund (TDF) may invest its assets into index-based securities that do not make tactical adjustments as the markets change—but the act of managing even an index-based portfolio according to a glide path that ramps down equity risk over time will always be at least in part fundamentally “active.” Read more >
Small Talk

ON THIS DATE: In 1514, Copernicus made his first observations of Saturn. In 1865, Joseph E. Johnston surrendered the Army of Tennessee to Sherman during the American Civil War. In 1921, weather broadcasts were heard for the first time on radio in St. Louis, Missouri. In 1952, Patty Berg set a new record for major women’s golf competition when she shot a 64 over 18 holes in a tournament in Richmond, California. 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.

SURVEY SAYS: Sometimes I take stay-cations, staying at home to get things done, while other times I take vacation to visit with family or to actually go to a place like the beach to wind down. This week, I’d like to know, are you planning a stay-cation or vacation this summer, and just for fun, please share your favorite vacation destination. You may respond to this week’s survey by 6 p.m. Pacific time today. Read more >
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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