Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
August 28th, 2015
Benefits & Administration
Kaiser Predicts Cadillac Tax Implication on Benefits
Up to one in four employers (26%) could be subject to the Patient Protection and Affordable Care Act’s (ACA’s) tax on high-cost health plans (Cadillac tax) in 2018, unless they make changes in their plans, according to projections from the Kaiser Family Foundation. In a report of the analysis, the foundation discusses how employers may revise their plans to avoid the tax by reducing options, or increasing costs, for employees.Read more >
In 2014, 43% of the small retirement plans with up to $20 million in assets that Vanguard served offered a match, Vanguard indicated in its “How America Saves—Small Business Edition.” The report looked at key metrics for plans of this size.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
Maximum Benefit and Contribution Limits Table 2023
TRIVIAL PURSUITS: How Many States Are in More Than One Time Zone?
Change in Pension Calculations Drives Up CEO Pay
S&P 500 firms last year funded an average $1.3 million to their CEO retirement benefits, compared to $467,000 in 2013—a 10.6% one-year increase, according to research released by The Conference Board. The research found that among larger firms (with market capitalization of $5 billion or greater), these exceptional one-year rises in 2014 mostly resulted from decisions by many organizations to revise their calculations for CEO pension contributions. What are the key factors that prompted these changes?Read more >
A report from Celent explores how a new generation of plan providers is making 401(k) administration less painful and more cost-effective for smaller companies, providing them access to services previously reserved for much larger firms.Read more >
Retirement Planning Takes a Life Vision
Experts assembled for a retirement-themed webcast hosted by the American Institute of Certified Public Accountants (AICPA) and 360 Degrees of Financial Literacy covered a range of topics, but one interesting point stood out: There is more to retirement planning than making financial calculations—more to living in retirement than securing an income stream.Read more >
Sales of group pension buy-outs reached $3.8 billion in the second quarter of 2015—a record for second quarter sales dating back to the early 1990’s, according to a LIMRA Secure Retirement Institute sales survey. And, it’s not just big companies making the move.Read more >
Products, Deals & People
Investment Product Launches for the Week
This week’s investment product launches include an expanded fund lineup from Guardian Retirement Solutions and a multi-asset growth fund from Oppenheimer.Read more >
Economic Events

New orders for manufactured durable goods in July increased $4.6 billion or 2.0% to $241.1 billion, the U.S. Census Bureau announced. This increase, up two consecutive months, followed a 4.1% June increase. Excluding transportation, new orders increased 0.6%. Excluding defense, new orders increased 1.0%. Transportation equipment, also up two consecutive months, led the increase, jumping $3.8 billion or 4.7% to $83.2 billion.                    

In the week ending August 22, the advance figure for seasonally adjusted initial claims for unemployment insurance was 271,000, a decrease of 6,000 from the previous week’s unrevised level of 277,000, the Labor Department reported. The four-week moving average was 272,500, an increase of 1,000 from the previous week’s unrevised average of 271,500.

The average interest rate for a 30-year fixed-rate mortgage is 3.84%, down from 3.93%, according to Freddie Mac. The average interest rate for a 15-year fixed-rate mortgage is 3.06%, down from 3.15%.

Market Mirror

Major U.S. stock indices continued their rebound Thursday. The Dow increased 369.26 points (2.27%) to 16,654.77, the NASDAQ climbed 115.17 points (2.45%) to 4,812.71, and the S&P 500 gained 47.15 points (2.43%) to finish at 1,987.66. The Russell 2000 was up 21.42 points (1.89%) at 1,153.61, and the Wilshire 5000 closed 493.63 points (2.42%) higher at 20,921.50.

On the NYSE, 3.2 billion shares changed hands, with advancing issues outnumbering declining issues more than 8 to 1. On the NASDAQ, nearly 2.8 billion shares traded, with a more than 3 to 1 lead for advancers.

The price of the 10-year Treasury note was down 4/32, increasing its yield to 2.189%. The price of the 30-year Treasury bond was up 3/32, decreasing its yield to 2.929%.

Boeing Settles 401(k) Fee Case
Boeing has reportedly moved to settle Spano vs. Boeing, with news of the settlement coming a day after the long-running 401(k) fee case was slated for another round of arguments before a district court. Earlier this month the U.S. District Court for the Southern District of Illinois said it would hear new arguments in the case August 26, but according to the law firm Schlichter, Bogard and Denton, Boeing has instead decided to settle accusations that it violated Employee Retirement Income Security Act (ERISA) provisions.Read more >
From the Magazine
Avoiding Common Loan and Hardship Mistakes
Sponsors may face several types of loan problems, says Carol Buckmann, counsel, pensions and benefits, at law firm Osler, Hoskin & Harcourt LLP. “The sponsor may make loans that exceed the maximum dollar limit allowed. The plan may have used the wrong loan-repayment schedule. It may not have calculated the interest owed correctly. Or it may not have handled a participant loan default correctly.”Read more >
Small Talk

ON THIS DATE: In 1907, the American Messenger Company was started by two teenagers, Jim Casey and Claude Ryan. The company’s name was later changed to “United Parcel Service.” In 1922, the first radio commercial aired on WEAF in New York City. The Queensboro Realty Company bought 10 minutes of time for $100. In 1963, on the steps of the Lincoln Memorial, Reverend Dr. Martin Luther King, Jr. gave his “I Have a Dream” speech at a civil rights rally in Washington, D.C.                                                 


And now it’s time for FRIDAY FILES!

Each state’s most embarrassing Google searches.Read more >
This cat didn’t need a new cat door.Read more >

In Hanover, Germany, a Norwegian man was driving back to Oslo When he decided to stop at a bank to get money. When he was unable to withdraw money from that bank, he walked to another to withdraw funds. Germany’s The Local reported that he was unable to retrace his steps to find his car, and he had lost the piece of paper on which he wrote down the name of the street where he parked. His search for his car lasted three weeks, in which a local resident helped him look and let him stay at her residence. Finally, a reader of the Hannoverische Allgemeine Zeituing told the newspaper she noticed an abandoned car parked in front of her house.

In Beijing, China, a woman was stopped by security at the airport and told she could not bring a bottle of imported cognac on the plane in her carry-on. It was too late to transfer the cognac to her checked-in luggage, so she sat down in a corner and drank the entire bottle by herself. According to The Nanfang newspaper’s website, the woman started acting wildly and yelling incoherently. She fell to the floor and was unable to get up. When police arrived at the scene, they decided not to let her board her flight out of concern that she had become a security risk to others and herself. The woman was taken to a convalescence room and was checked out by a doctor. She was eventually released by police to her family who had come to Beijing Airport to escort her home.

In Wildwood, Missouri, a woman shared with a TV station that she saw the face of Donald Trump in a tub of butter. (Shaking my head.)Read more >

In New York, New York, as a JetBlue flight arriving from Jamaica was taxiing toward a gate at JFK Airport, a 61-year-old passenger seated at a window attempted to climb over her seat mate, and the two women got into an altercation. The 61-year-old pulled out an eyebrow razor and slashed at her 52-year-old seat mate, and the younger woman pulled out pepper spray, according to CBS News. Seven people were treated for difficulty breathing, and the two women were arrested at the airport.               

In Madisonville, Kentucky, a woman broke into a home with the intention of stealing prescription medication and cigarette filters. But, while there, she noticed the stove had been left on by the owners and she worried it was a fire hazard, according to the local NBC News station. So, she called 911. She is now in jail.

Have a great weekend!
Share the good news with a friend! Pass the Dash along – and tell your friends/associates they can sign up for their own copy.Read more >

Editorial: Alison Cooke Mintzer


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