Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
August 23rd, 2016
Products, Deals and People
Morningstar to Offer New 401(k) Platform in 2017
Morningstar is planning a new 401(k) platform available next year to plan sponsors. Morningstar Plan Advantage will be an online platform to help plan sponsors access recordkeeping services and receive 3(38) fund lineup design and management services from Morningstar. The platform is intended to offer fund lineups designed and managed by Morningstar Investment Management through a variety of recordkeeping partners.Read more >
Best of PLANSPONSOR National Conference
If you missed the PLANSPONSOR National Conference, you’re in luck! We are taking the show on the road this fall to bring plan sponsors and retirement plan advisers across the country the same in-depth and insightful information provided at our National Conference each year. In a concise 1/2 day format, we’ll drill down into the latest trends and best practices, as well as future thinking about retirement plan design, participant engagement and education, investment options and solutions, and, of course, regulatory and litigation updates. Request an invitation and select the location you would most prefer.Read more >
TRIVIAL PURSUITS: How Many Phils Have There Been?
TRIVIAL PURSUITS: What do the M’s stand for in M&Ms?
2022 Recordkeeping Survey
TRIVIAL PURSUITS: Meaning and Origin of the Idiom “Watershed Moment?”
Maximum Benefit and Contribution Limits Table 2023
Market Mirror

Yesterday, the Dow closed down 23.15 points (0.12%) at 18,529.42, the NASDAQ gained 6.22 points (0.12%) to finish at 5,244.60, and the S&P 500 was down 1.23 points (0.06%) at 2,182.64. The Russell 2000 increased 2.88 points (0.23%) to 1,239.65, and the Wilshire 5000 climbed 2.93 points (0.01%) to 22,668.21.

On the NYSE, 3 billion shares traded, with advancing issues and declining issues evenly split. On the NASDAQ, 2.6 billion shares changed hands, with a slight lead of advancers.

The price of the 10-year Treasury note increased 11/32, dropping its yield to 1.544%. The price of the 30-year Treasury bond rose 1 5/32, decreasing its yield to 2.235%.


SunTrust Stock-Drop Complaint Moves Forward:
The U.S. District Court for the Northern District of Georgia, Atlanta Division, has handed down another ruling in a long-lived employer stock drop lawsuit filed by employees of SunTrust Bank. The case is among a handful of lawsuits winning reconsideration after the Supreme Court’s landmark 2014 decision in Fifth-Third Bancorp vs. Dudenhoeffer. This latest ruling seems to be a partial victory and partial defeat for SunTrust Bank, which won summary judgement and dismissal on certain claims while seeing other plaintiffs’ claims certified as a class action, slated for a full trial. The district court denied a plantiff’s motion to remove from consideration a report that supports SunTrust decisionmaking related to its offering of employer stock.Read more >
Another Broker/Dealer Hit With Self-Dealing Suit
A new self-dealing ERISA suit accuses broker/dealer Edward Jones of favoring its own investments and those of its “preferred partners” in its 401(k) plan, at the expense of performance. Defendants, which include the Edward Jones company and individual fiduciaries serving the plan, are also accused of causing the plan to pay excessive recordkeeping and plan administration fees to the recordkeeper, Mercer HR Services, Inc. Plaintiffs are seeking class action certification for their suit, which calls out a number of investment options by name for being persistently poor performers that were allowed to remain on the investment menu due to their brand’s connection with Edward Jones.Read more >
EBSA Alleges Plan Consultant Mistreated Small Businesses
An investigation by the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) suggests a Pennsylvania-based advisory and benefits consultant, Belanger and Co. Inc., violated the Employee Retirement Income Security Act (ERISA) by improperly transferring plan assets and failing to fully disclose fees, among other allegations. According to EBSA, on a variety of occasions the firm “failed to timely remit assets to certain plans, fully and timely terminate some plans and process some plan distributions, destroying documents, and making errors in the administration of some plans.” Among other things, EBSA seeks restoration of all plan losses and lost earnings, and an injunction permanently preventing the defendants from exercising custody, control, or decisionmaking authority with respect to the assets of any employee benefit plan covered by ERISA.Read more >
Sponsored message from SEI
A Changing Landscape Requires a New Approach: DC Discretion A changing DC landscape: Sponsors consider discretionary investment management. Why the shift?Read more >
For Fifth Quarter, Pension Buyouts Break $1B
Group pension buyout sales exceeded $1 billion for the second quarter of 2016, according to the LIMRA Secure Retirement Institute. Traditionally, buyout sales have had a strong seasonality with most sales occurring in the fourth quarter. Activity in the first six months of 2016 is up 22% compared with the first half of 2015. Through the second quarter of this year, 131 plan sponsors have converted their defined benefit (DB) pension plans to group annuity contracts, surpassing the previous high-water mark of 107 contracts sold in the first six months of 2015.Read more >
Small Talk
ON THIS DATE: In 1838, the first class graduated from Mount Holyoke Female Seminary in South Hadley, MA. It was one of the first colleges for women. In 1839, Hong Kong was taken by the British in a war with China. In 1902, Fannie Merrit Farmer opened her cooking school, Miss Farmer’s School of Cookery, in Boston. In 1904, Hard D. Weed patented the grip-tread tire chain for cars. In 1914, Tsingtao, China, was bombarded as Japan declared war on Germany in World War I. In 1939, Nazi Germany and the Soviet Union signed a non-aggression treaty. In 1944, Marseilles was captured by Allied troops during World War II. In 1959, Sally debuted in the Peanuts comic strip as an infant. In 1962, the first live TV program was relayed between the U.S. and Europe through the U.S. Telstar satellite. In 1982, Gaylord Perry (Seattle Mariners) was tossed out of a game for throwing an illegal spitball. In 1984, South Fork Ranch, the home of the fictitious Ewing clan of the CBS-TV show, “Dallas,” was sold. The ranch was to be transformed from a tourist site into a hotel. In 1990, President Saddam Hussein appeared on Iraqi state television with a group of Western detainees that he referred to as “guests.” He told the group that they were being held “to prevent the scourge of war.” In 1993, it was confirmed by Los Angeles police that Michael Jackson was the subject of a criminal investigation. In 1996, U.S. President Clinton imposed limits on peddling cigarettes to children. In 2000, Richard Hatch was revealed as the winning castaway on the first season of CBS’ “Survivor.” Hatch won $1,000,000 for his stay on the island of Pulau Tida in the South China Sea.
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Editorial: Alison Cooke Mintzer


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