Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
August 21st, 2017
Who’s Working for You?
Who’s Working for You?: ERIC
In a series of articles, PLANSPONSOR is profiling industry groups that work for retirement and health plan sponsors to protect them from onerous burdens and help them with plan design and administration. In this article we profile the ERISA Industry Committee (ERIC). Read more >
From the Magazine
Avoiding Reactions to Fake Financial News
Unreliable financial news is affecting Americans’ ability to make retirement, investment and health care decisions, according to a survey of 1,018 adults conducted in March for the American Institute of Certified Public Accountants (AICPA) by Harris Poll. Fake news is nothing new, but increased awareness of the threat it places on financial decisionmaking can help. Read more >
MOST READ ARTICLES
1
House Committee Advances Bill to Establish Union Pension Lifeline Program
2
The Senate Math That Could Block SECURE Act
3
Adidas Sued Over Excessive Fees for 401(k) Participants
4
Open MEPs Not for Every Plan Sponsor
5
Employers Encouraged to Offer Multi-Dimensional Wellness Programs
Products, Deals and People
Retirement Industry People Moves
Student Loan Genius announces new CEO, and Cammack Retirement Group hires consultant. Read more >
Economic Events

THE ECONOMIC WEEK AHEAD: Wednesday, the Census Bureau will report about new home sales in July. Thursday, the Department of Labor will issue its initial claims report, and the National Association of Realtors will report about existing home sales in July. Friday, the Census Bureau will report about durable goods orders in July.

Sponsored message from Voya
Plan Cost & Missing Participants: An interview with Charlie Nelson of Voya Financial Pt. 3 Read more >
Market Mirror

Friday, the Dow fell 76.22 points (0.35%) to 21,674.51, the NASDAQ closed 5.39 points (0.09%) lower at 6,216.53, and the S&P 500 was down 4.46 points (0.18%) at 2,425.55. The Russell 2000 decreased by 1.14 (0.08%) to 1,357.79, and the Wilshire 5000 lost 46.46 points (0.18%) to finish at 25,107.81.

The price of the 10-year Treasury note was down 1/32, increasing its yield to 2.193%. The price of the 30-year Treasury bond ended up unchanged, with its yield at 2.775%.

WEEK’S WORTH: For the week ending August 18, the Dow lost 0.84%, the NASDAQ was down 0.64%, and the S&P 500 decreased 0.65%. The Russell 2000 fell 1.20%, and the Wilshire 5000 finished 0.72% lower.

Compliance
NY Skin Surgery Center to Pay $5 Million to ESOP
The owner of a Manhattan laser surgery center has reached agreement with the Department of Labor (DOL) to pay $5 million to its employee stock ownership plan (ESOP) in order to resolve violations of the Employee Retirement Income Security Act (ERISA) related to the valuation of the owner’s stock to be purchased by the ESOP. Read more >
Appellate Court Weighs Foot Locker Cash Balance Disclosure Failures
The appellate court and district court both agree that Foot Locker did not adequately disclose to participants the possibility of “wear-away” during the transition to a cash balance approach. Read more >
Small Talk

ON THIS DATE: In 1680, the Pueblo Indians drove the Spanish out and took possession of Santa Fe, New Mexico. In 1831, Nat Turner, a former slave, led a violent insurrection in Virginia. In 1841, a patent for venetian blinds was issued to John Hampton. In 1878, the American Bar Association was formed by a group of lawyers, judges and law professors in Saratoga, New York. In 1888, the adding machine was patented by William Burroughs. In 1912, Arthur R. Eldred became the first American boy to become an Eagle Scout, the highest rank in the Boy Scouts of America. In 1945, U.S. President Harry Truman ended the Lend-Lease program that had shipped about $50 billion in aid to America’s Allies during World War II. In 1959, Hawaii became the 50th state. U.S. President Dwight Eisenhower also issued the order for the 50 star flag. In 1984, Victoria Roche, a reserve outfielder, became the first girl to ever compete in a Little League World Series game. In 1984, Clint Eastwood was given a star on the Hollywood Walk of Fame. In 1996, the Health Insurance Portability and Accountability Act of 1996 (HIPAA) was signed by U.S. President Bill Clinton. The act made it easier to obtain and keep health insurance. In 1997, Afghanistan suspended its embassy operations in the United States. In 1997, Cicely Tyson received a star on the Hollywood Walk of Fame. In 1998, Wesley Snipes received a star on the Hollywood Walk of Fame.

SURVEY SAYS RESPONSES: Last week, I asked NewsDash readers, “Do you know someone working a ‘gig’ job, and do they receive health and retirement benefits? More than two-thirds (68.4%) of responding readers reported that either they or someone they know had taken on a ‘gig’ job, but 31.6% indicated they didn’t know anyone with a ‘gig’ job. Among those who took ‘gig’ work or know someone who did, 31.2% said the person retired before taking on that job; 68.7% said the person didn’t. According to 87.5% of respondents, the person with a ‘gig’ job does not get health or retirement benefits. However, 6.2% said the person gets retirement benefits, and another 6.2% said the person gets health benefits. No one reported that the person with a ‘gig’ job received both health and retirement benefits. Among readers who chose to make verbatim comments, many noted that for ‘gig’ work to ‘work’ as far as health benefits, the person needs a fall back, such as a spouse with health insurance or still being young enough to be on their parents health insurance. A few said the tradeoffs of ‘gig’ work, i.e. flexible schedule, less stress, made up for the lack of benefits. But many pointed out the difficulty of saving for retirement for ‘gig’ workers who are not already retired. Editor’s Choice goes to the reader who said: “I know lots of people with ‘gig’ jobs, most are post-retirement jobs. Although most are enjoying what they do, I hope to retire with enough funds to never need a ‘gig’ job!” A big thank you to all who responded to the survey! Read more >
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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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