Plansponsor Logo
PLANSPONSOR NEWSDASH LOGO August 24th, 2020
Insight on Plan Design & Investment Strategy Every Weekday
Data and Research
Educators Trying to Balance Safety With Finances
Three-fourths of K-12 educators consider their job risky in terms of exposure to COVID-19, but they are also concerned about the pandemic's impact on their ability to save for retirement.
Data and Research
Those Who Have Both a 401(k) and IRA Have Higher Savings
EBRI found individuals able to consistently contribute to both could end up with around 2.5 times more savings for retirement.
Most Read

2020 PLANSPONSOR National Conference

2020 Recordkeeping Survey

2019 Recordkeeping Survey
SPONSORED BY: PLANSPONSOR
Access leading-edge industry ideas.
Click here to learn more.
Deals and People
Carillon Tower Advisers Appoints Responsible Investing Head
Joy Facos will support Carillon’s affiliates and coordinate ESG data and corporate engagement.
Economic Events
Existing-home sales continued on a strong, upward trajectory in July, marking two consecutive months of significant sales gains, according to the National Association of Realtors. Each of the four major regions attained double-digit, month-over-month increases, while the Northeast was the only region to show a year-over-year decline. Total existing-home sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, jumped 24.7% from June to a seasonally-adjusted annual rate of 5.86 million in July. The previous record monthly increase in sales was 20.7% in June of this year. Sales as a whole rose year-over-year, up 8.7% from a year ago (5.39 million in July 2019).

Tomorrow, the Conference Board will issue its Consumer Confidence Index for August. Wednesday, the Census Bureau will report about durable goods orders for July. Thursday, the Labor Department will issue its initial claims report.
Market Mirror
Friday, the Dow gained 190.60 points (0.69%) to finish at 27,930.33, the NADAQ closed 46.85 points (0.42%) higher at 11,311.80, and the S&P 500 increased 11.65 points (0.34%) to 3,397.16. The Russell 2000 fell 17.30 points (1.10%) to 1,552.48, and the Wilshire 5000 was up 82.67 points (0.24%) at 34,741.40.

The price of the 10-year Treasury note was up 1/32, decreasing its yield to 0.638%. The price of the 30-year Treasury bond increased 32/32, bringing its yield down to 1.346%.

For the week ending August 21, the Dow was virtually unchanged, the NASDAQ gained 2.65%, and the S&P 500 was up 0.72%. The Russell 2000 finished 1.61% lower, and the Wilshire 5000 increased 0.76%.
Compliance
Another Lawsuit Takes Aim at Plan’s Use of Fidelity Active TDF Suite
The lawsuit also calls out what it says are ‘additional objectively imprudent investment options,’ and claims recordkeeping fees were excessive.
iHeart Communications Faces 401(k) Excessive Fee Suit
Company 401(k) plan fiduciaries are accused of failing to negotiate for better fees, switch to collective trusts and switch to lower-cost share classes for investments.
Benefits
If COVID-19 Prompts Teacher Retirements, Pensions in Jeopardy
It would increase public pension plans’ required contributions and result in lower contributions by members.
Small Talk
ON THIS DATE: In 0079, after centuries of dormancy, Mount Vesuvius erupts in southern Italy, devastating the prosperous Roman cities of Pompeii and Herculaneum and killing thousands. In 1814, during the War of 1812, Washington, D.C., was invaded by British forces that set fire to the White House and Capitol. In 1932, Amelia Earhart became the first woman to fly across the U.S. non-stop. The trip from Los Angeles to Newark, New Jersey, took about 19 hours. In 1949, the North Atlantic Treaty Organization (NATO) went into effect. The agreement was that an attack against on one of the parties would be considered “an attack against them all.” In 1959, three days after Hawaiian statehood, Hiram L. Fong was sworn in as the first Chinese-American U.S. senator while Daniel K. Inouye was sworn in as the first Japanese-American U.S. representative. In 1989, Pete Rose, the manager of the Cincinnati Reds, was banned from baseball for life after being accused of gambling on baseball. In 1991, Russian President Mikhail Gorbachev resigned as the head of the Communist Party. In 2006, the planet Pluto was reclassified as a “dwarf planet” by the International Astronomical Union (IAU). Pluto’s status was changed due to the IAU’s new rules for an object qualifying as a planet. Pluto met two of the three rules because it orbits the sun and is large enough to assume a nearly round shape. However, since Pluto has an oblong orbit and overlaps the orbit of Neptune it disqualified Pluto as a planet.
SURVEY SAYS RESPONSES: Last week, I asked NEWSDash readers whether retirement plan participants will pay more attention to electronic disclosures and whether more of them will dip into their retirement accounts with Congress stalled on legislation that would provide greater unemployment benefits and another stimulus check. The majority of respondents do not think more participants will pay attention to disclosures delivered electronically, while 8.8% said they think they will and 5.9% are unsure. More than half (55.9%) said they think more participants will request loans or distributions from retirement accounts to help them financially. Most of the readers who chose to enter a comment weighed in on electronic disclosures to participants. Some suggested it is not the delivery method that leads participants to ignore them but the way they are written. Among those who did comment about more participants requesting loans or distributions from their retirement accounts, one suggested any increase would be due to voluntary separations and early retirements not a reduction in unemployment benefits. Another contended that many of the people whose employment has been affected by the coronavirus are young in entry-level or part-time jobs and do not have retirement accounts. There is no Editor’s Choice this week. A big thank you to all who participated in our survey!
Did someone forward you this newsletter? Sign up here to get NEWSDash directly in
your mailbox!
rss icon twitter icon linkedin-in icon facebook icon
ISS MEDIA logo
Unsubscribe | Manage Subscriptions | Contact Us | Privacy Policy | Advertise
©2020 Asset International Inc. All rights reserved.
702 King Farm Boulevard, Suite 400, Rockville, MD 20850