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PLANSPONSOR NEWSDASH LOGO December 11th, 2020
Insight on Plan Design & Investment Strategy Every Weekday
Compliance
Effects of COVID-19 Could Spark More Retirement Plan Litigation in 2021
Effects of COVID-19 Could Spark More Retirement Plan Litigation in 2021
Industry experts say market volatility and cybersecurity issues could lead to new lawsuits.
Administration
DB Funded Status Nearly Back to Level From Beginning of Year
A strong equity market rally in November gave defined benefit plan funded status a boost, but long-duration fixed income also performed well.
Most Read

2021 Health Savings Account Survey
Compliance
SECURE Act 2.0 Passed Unanimously by Ways and Means Committee
Data and Research
Health Care Costs in Retirement Remain a Top Stressor
SPONSORED BY: Natixis Investment Managers
Expert Voice: Ed Farrington
Executive Vice President, Institutional and Retirement, for Natixis Investment Managers
Economic Events
Interest on a 30-year fixed-rate mortgage averaged 2.71% for the week ending December 10, unchanged from last week, according to Freddie Mac. A year ago at this time, the 30-year FRM averaged 3.73. Interest on a 15-year fixed-rate mortgage averaged 2.26%, unchanged from last week. A year ago at this time, the 15-year FRM averaged 3.19%.

In November, the Consumer Price Index for All Urban Consumers (CPI-U) rose 0.2% on a seasonally adjusted (SA) basis; rising 1.2% over the last 12 months, not seasonally adjusted (NSA), the Bureau of Labor Statistics revealed. The index for all items less food and energy rose 0.2% in November, SA; up 1.6% over the year, NSA.

Real average hourly earnings increased 0.1% over the month in November, SA. Average hourly earnings increased 0.3% and CPI-U increased 0.2%. Real average weekly earnings increased 0.1% over the month.

In the week ending December 5, the advance figure for seasonally adjusted initial claims for unemployment insurance was 853,000, an increase of 137,000 from the previous week’s revised level of 716,000, the Labor Department reported. The four-week moving average was 776,000, an increase of 35,500 from the previous week’s revised average of 740,500.
Market Mirror
Thursday, the Dow decreased 69.55 points (0.23%) to 29,999.26, the NASDAQ increased 66.86 points (0.54%) to 12,405.81, and the S&P 500 was down 4.72 points (0.13%) at 3,668.10. The Russell 2000 closed 20.56 points (1.08%) higher at 1,922.70, and the Wilshire 5000 was up 78.38 points (0.20%) at 38,552.14.

The price of the 10-year Treasury note was up 4/32, decreasing its yield to 0.903%. The price of the 30-year Treasury bond increased 1 4/32, bringing its yield down to 1.630%.
Compliance
NAGDCA Expects Movement on Retirement Reform in 2021
Priorities of the National Association of Government Defined Contribution Administrators is in recently introduced legislation, including allowing 403(b) plans to invest in CITs.
Investing
More of the Same Expected for Rates, Inflation in 2021
Interest rates were already stuck at stubbornly low levels even before the outbreak of the coronavirus pandemic, and the federal government has since signaled a commitment to accommodative monetary policy.
DB Plan Sponsors Looking to New Vehicles for LDI Strategies
Diversification is a focus for fixed income investments, and experts shared thoughts about strategies during a roundtable event.
Products,
Paychex Will Offer PEP in January
The company contends its PEP offers greater levels of efficiency, as it can be integrated with the Paychex payroll.
Investment Product and Service Launches
Nationwide announces new suite of in-plan annuities; SC Ventures and Northern Trust to launch Zodia Custody; Wilmington Trust and Neuberger Berman collaborate on CIT distribution; and more.
SPONSORED BY: AYCO
Benefit considerations in uncertain times
Employers are shifting their benefits to help employees navigate the financial impact of COVID-19.
Small Talk
ON THIS DATE: In 1719, the first recorded sighting of the aurora borealis took place in New England. In 1769, Edward Beran of London patented venetian blinds. In 1816, Indiana was admitted to the Union as the 19th American state. In 1844, Dr. Horace Wells became the first person to have a tooth extracted after receiving an anesthetic for the dental procedure. Nitrous oxide, or laughing gas, was the anesthetic. In 1872, Pinckney Benton Stewart Pinchback became America’s first black governor when he took office as acting governor of Louisiana. In 1930, the Bank of the United States in New York failed. In 1941, Germany and Italy declared war on the United States. In 1946, in the aftermath of World War II, the General Assembly of the United Nations voted to establish the United Nations International Children’s Emergency Fund (UNICEF), an organization to help provide relief and support to children living in countries devastated by the war. In 1961, the first direct American military support for South Vietnam occurred when a U.S. aircraft carrier carrying Army helicopters arrived in Saigon. In 1985, General Electric Co. agreed to buy RCA Corporation for $6.3 billion. Also included in the deal was NBC Radio and Television. In 1994, the world’s largest free trade zone was created when leaders of 34 Western Hemisphere nations signed a free-trade declaration known as “The Miami Process.” In 1998, majority Republicans on the House Judiciary Committee pushed through three articles of impeachment against President Bill Clinton. In 2001, U.S. Attorney General Ashcroft announced the first federal indictment directly related to the terrorist attacks on the United States on September 11, 2001. Zacarias Moussaoui was charged with six conspiracy charges. Moussaoui was in custody at the time of the attacks. In 2008, financier Bernard Madoff was arrested at his New York City apartment and charged with masterminding a long-running Ponzi scheme later estimated to involve around $65 billion, making it one of the biggest investment frauds in Wall Street history.

And now it’s time for FRIDAY FUN!
Hmmm, this guy sure does look guilty.

During the second song, this little girl steals the show.

This dog is very distressed about dropping his toy.

In Greenville County, South Carolina, park officials found a 9-pound goldfish while doing some testing at a lake. National Geographic says the size of a goldfish “is usually constrained by the size of its tank.” Ty Houck, an official with Greenville County Parks, told CNN that goldfish can “grow to their environment” and that this probable former pet thrived in the food-rich 12-acre pond. “We think someone must have just dropped their fish in the lake because they didn’t want it anymore, instead of flushing it down the toilet,” Houck said. [pic]

Wishing everyone a safe and happy weekend and happy holidays!
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