Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
August 30th, 2018
Compliance
Charles Schwab, Chamber of Commerce Ask Court to Reconsider Arbitration in USC Case
The Charles Schwab Corporation and the U.S. Chamber of Commerce have filed amicus briefs in the 9th U.S. Circuit Court of Appeals asking it to reconsider its decision that claims against the University of Southern California relating to breaches of fiduciary duty in the management of its 403(b) plans fell outside the scope of the arbitration agreements that the participants signed. For its part, Schwab says the appellate court’s decision, which effectively invalidates agreements to arbitrate Employee Retirement Income Security Act (ERISA) Section 502(a)(2) claims, conflicts with U.S. Supreme Court and Circuit precedent interpreting the Federal Arbitration Act (FAA) and ERISA. Read more >
6th Circuit Asks District Court to Consider Plan Reformation in Chrysler Lawsuit
The U.S. 6th Circuit Court of Appeals has ruled once again on pension plan litigation filed by a former employer of Chrysler Group. This second appellate decision reverses the district court’s latest grant of summary judgment to the plan on the lead plaintiff’s request for reformation. A plan participant relied on language in the pension plan’s summary plan description (SPD) regarding eligibility for benefits, and the appellate court found the SPD inaccurately portrayed provisions of the plan document. Read more >
DOL Provides Guidance for Association Health Plans
The guidance addresses Employee Retirement Income Security Act (ERISA) rules for association health plans (AHPs), state authority over the plans and the timing for establishing an AHP, among other things. Read more >
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Participant Loans: A Fiduciary Storm Brewing?
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What to Know About Financial Audits Filed with Form 5500s
Market Mirror

Wednesday, the Dow was up 60.55 points (0.23%) at 26,124.57, the NASDAQ climbed 79.65 points (0.99%) to 8,109.69, and the S&P 500 closed 16.52 points (0.57%) higher at 2,914.04. The Russell 2000 increased 6.33 points (0.37%) to 1,734.75, and the Wilshire 5000 gained 182.59 points (0.60%) to finish at 30,384.51.

 

The price of the 10-year Treasury note was unchanged, with its yield at 2.883%%. The price of the 30-year Treasury bond increased 6/32, bringing its yield down to 3.023%.

Investing
Wells Fargo Pulls Back on Decision to Use T Shares
Last May, Wells Fargo Advisors announced it was putting new limits on mutual fund share classes and types of securities advisers can sell or recommend in a client’s retirement account. However, the firm recently announced it was pulling back on plans to use T shares. “In 2017, we made plans to use T shares in brokerage retirement accounts but eventually decided against it,” the firm told PLANSPONSOR in a statement. Although it did answer the question of whether the decision was made in response to the 5th U.S. Circuit Court of Appeals mandate to vacate the DOL’s fiduciary rule, it is clear that T shares and so-called “clean shares” were created to comply with the rule. Read more >
Products, Deals and People
Priority Health Introduces All-Encompassing Wellness Solution
Priority Health has introduced a new product, PriorityWell, which covers more than just financial and physical wellbeing—extending also to emotional, social and environmental health. In addition, Priority Health has launched a Wellbeing Hub where each employee can address their individual needs. Read more >
Small Talk

ON THIS DATE: In 1645, American Indians and the Dutch made a peace treaty at New Amsterdam. New Amsterdam later became known as New York. In 1862, the Confederates defeated Union forces at the second Battle of Bull Run in Manassas, Virginia. In 1905, Ty Cobb made his major league batting debut with the Detroit Tigers. In 1941, during World War II, the Nazis severed the last railroad link between Leningrad and the rest of the Soviet Union. In 1945, General Douglas MacArthur set up Allied occupation headquarters in Japan. In 1951, the Philippines and the United States signed a defense pact. In 1960, a partial blockade was imposed on West Berlin by East Germany. In 1963, the “Hotline” between Moscow and Washington, D.C., went into operation. In 1965, Thurgood Marshall was confirmed by the U.S. Senate as a Supreme Court justice. Marshall was the first black justice to sit on the Supreme Court. In 1984, President Ronald Reagan, and several others, were inducted into the Sportscasters Hall of Fame. In 1993, on CBS-TV “The Late Show with David Letterman” premiered. In 1994, the largest U.S. defense contractor was created when the Lockheed and Martin Marietta corporations agreed to a merger. In 2002, Conoco Inc. and Phillips Petroleum merged to create ConocoPhillips. The new company was the third largest integrated energy company and the second largest refining company in the U.S.

SURVEY SAYS: There are arguments on both sides regarding whether paying down debt should be priority over saving for retirement or vice versa. This week, I’d like to know, do you think people should focus on paying down debt before focusing on saving for retirement? And, for you, personally, what is your first priority? You may respond to this question by 6 p.m. Pacific time today. 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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