Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
August 5th, 2019
Final ARP Rule Opens Door for More Employers to Offer Retirement Plans
Industry sources discuss the positives from the final association retirement plan (ARP) rule, but the industry will still have to wait for progress on offering plans for employers without a common nexus.Read more >
Products, Deals and People
Retirement Industry People Moves
Custodia adds former Pfizer HR chief to advisory council, and IRS names leader for Tax Exempt/Government Entities division.Read more >
New Financial Audit Rule Increases Requirements for Plan Sponsors
2021 Recordkeeping Survey
TRIVIAL PURSUITS: What do the M’s stand for in M&Ms?
Participants Missing the Full Match Remains a Big Problem
TRIVIAL PURSUITS: Meaning and Origin of the Idiom “Watershed Moment?”
Capital One’s All-ETF Digital 401(k) Business Spins Off
The focus of the newly independent ShareBuilder 401k will be on expanding coverage among small companies, says its president.Read more >
Sponsored message from J.P. Morgan Asset Management
The power of being proactive
J.P. Morgan’s 2019 DC Plan Sponsor Survey Findings highlight how plan sponsors are achieving greater success with plan design.Read more >
Economic Events

New orders for manufactured durable goods in June increased $4.9 billion or 2% to $246 billion, the U.S. Census Bureau announced. This increase, up following two consecutive monthly decreases, followed a 2.3% May decrease. Excluding transportation, new orders increased 1.2%. Excluding defense, new orders increased 3.1%. Transportation equipment, also up following two consecutive monthly decreases, led the increase, $3 billion or 3.8% to $80.5 billion.


Total nonfarm payroll employment rose by 164,000 in July, and the unemployment rate was unchanged at 3.7%, the Bureau of Labor Statistics reported. Notable job gains occurred in professional and technical services, health care, social assistance and financial activities.


THE ECONOMIC WEEK AHEAD: Thursday, the Labor Department will issue its initial claims report, and Friday, the Bureau of Labor Statistics will reveal the producer price index for July.
Market Mirror

Friday, the Dow was down 98.41 points (0.37%) at 26,485.01, the NASDAQ fell 107.05 points (1.32%) to 8,004.07, and the S&P 500 decreased 21.51 points (0.73%) to 2,932.05. The Russell 2000 lost 17.11 points (1.10%) to finish at 1,533.66, and the Wilshire 5000 closed 256.04 points (0.84%) lower at 30,120.85.


The price of the 10-year Treasury note was up 5/32, decreasing its yield to 1.845%. The price of the 30-year Treasury bond increased 1 5/32, bringing its yield down to 2.377%.


WEEK’S WORTH: For the week ending August 2, the Dow was down 2.60%, the NASDAQ fell 3.92%, and the S&P 500 finished 3.10% lower. The Russell 2000 decreased 2.87%, and the Wilshire 5000 lost 3.29%.
Industry Voices
Taking a ‘Calculated’ Approach to Retirement Readiness
Nathan Voris, with Schwab Retirement Plan Services, discusses how retirement calculators can be a useful resource for employees—by spurring them into action and providing them with more confidence about retirement readiness.Read more >
From the Magazine
Revenue Sharing on the Decline?
We analyzed three data points from recent PLANSPONSOR Industry Reports to see how revenue-sharing usage is trending.Read more >
Small Talk
ON THIS DATE: In 1861, the U.S. federal government levied its first income tax. The tax was 3% of all incomes over $800. The wartime measure was rescinded in 1872. In 1884, on Bedloe’s Island in New York Harbor, the cornerstone for the Statue of Liberty was laid. In 1914, the first electric traffic signal lights were installed in Cleveland, Ohio. In 1923, Henry Sullivan became the first American to swim across the English Channel. In 1924, the New York “Daily News” debuted the comic strip “Little Orphan Annie,” by Harold Gray. In 1944, Polish insurgents liberated a German labor camp in Warsaw; 348 Jewish prisoners were freed. In 1953, during the Korean conflict prisoners were exchanged at Panmunjom. The exchange was labeled Operation Big Switch. In 2011, NASA announced that its Mars Reconnaissance Orbiter had captured photographic evidence of possible liquid water on Mars during warm seasons.
SURVEY SAYS RESPONSES: Last week, I asked NewsDash readers, “Do you think Social Security benefits will be available when you retire?” The good news is that only 12.1% of responding readers said “No.” The greatest percentage of respondents (45.5%) indicated they believe Social Security benefits will be available and similar to current benefits, while 41.4% believe Social Security will be available, but at reduced benefits. In verbatim responses, there was belief by many that Congress will pull it together to make Social Security sustainable. “No politician or political party wants to be known as the ‘Social Security killer,’” one reader said. “SS will die when all members of Congress decide they don’t want to be re-elected,” said another. But, most believe there will be a cut to benefits. Many believe applicants will be subject to a means test, which some agree with, but many think will punish those who have been diligently saving for retirement. Respondents offered several suggestions for changes that could be made to make Social Security more sustainable, including taking away the cap on income that can be taxed for it. Editor’s Choice goes to the reader who said: “It better be – I’ve paid enough into it!” Thank you to all who participated in our survey!Read more >
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Editorial: Alison Cooke Mintzer


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