Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
April 5th, 2016
Benefits & Administration
Sponsors Can Benefit from Their Own Analysis of Portability
“Much has changed in the last 10 years with product designs, industry standards and new technology all working together to help retirement plans and participants access structured lifetime income,” argues a new white paper from the Institutional Retirement Income Council (IRIC). Despite the ongoing progress, there is still a stubborn perception in the retirement planning marketplace that “portability is an obstacle to offering lifetime income products due to both its importance and the widely held view that portability options do not exist or are not feasible,” IRIC explains.Read more >
Millennials, in particular, are seeking help from their employers when it comes to addressing financial concerns, a study from MetLife found.Read more >
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Financial Problems Can Affect Employee Job Performance
Stress from managing debt and saving for retirement has an impact on work life, and employers are combatting the problem with financial education.Read more >
Most homeowners surveyed by Voya Financial (80%) said they are optimistic about paying off their loan before retirement, but 26% of current retirees said they still have an outstanding mortgage balance.Read more >
Conventional wisdom has it that lower-income workers should get the most out of Social Security, but that’s not necessarily the case given uneven increases in longevity across income groups.Read more >
Economic Events
New orders for manufactured durable goods in February, down three of the last four months, decreased $7.0 billion or 3% to $229.1 billion, down from the previously published 2.8% decrease. This followed a 4.3% January increase. Transportation equipment, also down three of the last four months, led the decrease, $4.9 billion or 6.2% to $74.1 billion. New orders for manufactured nondurable goods decreased $1.0 billion or 0.4% to $224.8 billion.
Market Mirror

Yesterday, the Dow decreased 55.75 points (0.31%) to 17,737.00, the NASDAQ lost 22.75 points (0.46%) to finish at 4,891.80, and the S&P 500 was down 6.68 points (0.32%) at 2,066.10. The Russell 2000 fell 9.22 points (0.82%) to 1,108.46, and the Wilshire 5000 closed 86.72 points (0.41%) lower at 21,248.41.

On the NYSE, 3.2 billion shares traded, with a near 3 to 1 lead for decliners. On the NASDAQ, 2.7 billion shares changed hands, with 1.4 declining issues for every advancing issue.

The price of the 10-year Treasury note increased 4/32, bringing its yield down to 1.759%. The price of the 30-year Treasury bond was up 3/32, decreasing its yield to 2.596%.
Compliance
In a report to Congress, the Pension Benefit Guaranty Corporation (PBGC) says its multiemployer program is likely to run out of money by 2025.Read more >
DOL Weighs in on Fidelity Float Income Suit
In an amicus curiae brief filed with the 1st U.S. Circuit Court of Appeals, the Department of Labor (DOL) notes that the Employee Retirement Income Security Act (ERISA) prohibits retirement plan fiduciaries from using undisclosed float income obtained through plan administration for any purpose other than to benefit the ERISA-covered plan. The brief was filed for the case of Kelley v. Fidelity Management Trust Company in which participants from three 401(k) plans administered by Fidelity allege Fidelity engaged in prohibited transactions and breached its fiduciary duty by using float income to pay itself trust and recordkeeping fees above and beyond the fees authorized in the trust agreements between the plans and Fidelity. The DOL has asked the appellate court to reverse a district court’s dismissal of the case.Read more >
California Files Lawsuit Against Morgan Stanley
The suit says misrepresentations about complex investments such as residential mortgage-backed securities contributed to major losses for the nation’s two largest public pension funds.Read more >
Industry Voices
Barry’s Pickings Online: Passive Aggression
Columnist Michael Barry discusses the passive versus index investing debate and why defense is hard in excessive fee cases.Read more >
Small Talk
ON THIS DATE: In 1792, U.S. President George Washington cast the first presidential veto. The measure was for apportioning representatives among the states. In 1869, Daniel Bakeman, the last surviving soldier of the U.S. Revolutionary War, died at the age of 109. In 1951, Americans Julius and Ethel Rosenberg were sentenced to death for committing espionage for the Soviet Union. In 1984, Kareem Abdul-Jabbar (Los Angeles Lakers) became the all-time NBA regular season scoring leader when he broke Wilt Chamberlain’s record of 31,419 career points.
TRIVIAL PURSUITS: After a bout of spring-like weather, some in the Northeast were surprised with some snow yesterday. Do you know when the latest recorded snowfall in the U.S. occurred?Read more >
Share the good 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

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