Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
December 12th, 2016
Webcast Event
Low interest rates and steadily increasing Pension Benefit Guaranty Corporation (PBGC) premiums have created an opportunity for companies to pursue a borrow-to-fund strategy aimed at reducing pension risk and creating shareholder value. Many pension plan sponsors of underfunded plans can borrow at attractive rates today, contribute the proceeds to their plans, and diminish or eliminate pension deficits and variable PBGC premiums. Join us for an up-to-date perspective on the economic rationale and considerations of this approach in light of an overall pension risk-reduction strategy. Read more >
Products, Deals and People
Retirement Industry People Moves
Community Bank Systems to Acquire Northeast Retirement Services; IFM Names Development Director; PGIM Names Head of Research for Institutional Advisory Services; and more. Read more >
MOST READ ARTICLES
1
House Committee Advances Bill to Establish Union Pension Lifeline Program
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The Senate Math That Could Block SECURE Act
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Adidas Sued Over Excessive Fees for 401(k) Participants
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Open MEPs Not for Every Plan Sponsor
5
(b)lines Ask the Experts – Proper Delivery Method for SPDs
Economic Events

The U.S. Census Bureau announced that October sales of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations and trading-day differences but not for price changes, were $452.2 billion, up 1.4% from the revised September level and up 2.2% from the October 2015 level. October sales of durable goods were up 1.1% from September and were up 2.5% from a year ago. Sales of electrical and electronic goods were up 2.2% from September and sales of metals and minerals, except petroleum were up 2.0%. Sales of nondurable goods were up 1.6% from September and were up 1.9% from last October. Sales of farm product raw materials were up 8.3% from the previous month and sales of petroleum and petroleum products were up 6.6%.

THE ECONOMIC WEEK AHEAD: Wednesday, the Census Bureau will report about retail sales for November and business inventories for October, and the Bureau of Labor Statistics will reveal the producer price index for November. Thursday, the Labor Department will issue its initial claims report, and the Bureau of Labor Statistics will reveal the consumer price index for November. Friday, the Census Bureau will report about housing starts for November.

Sponsored message from SSGA
Investment Quarterly: The New Active
The combination of big data and artificial intelligence is transforming how active managers identify new factor signals to build better alpha models. Read more >
Market Mirror

Friday, the Dow climbed 142.04 points (0.72%) to 19,756.85, the NASDAQ increased 27.14 points (0.50%) to 5,444.50, and the S&P 500 gained 13.34 points (0.59%) to finish at 2,259.53. The Russell 2000 increased by 1.71 points (0.12%) to 1,388.07, and the Wilshire 5000 closed 125.05 points (0.53%) higher at 23,678.76.

On the NYSE, 3.1 billion shares traded, with a slight lead for declining issues. On the NASDAQ, 2.9 billion shares changed hands, with 1.4 advancers for every decliner.

The price of the 10-year Treasury note decreased 16/32, bringing its yield up to 2.466%. The price of the 30-year Treasury bond fell 25/32, increasing its yield to 3.151%.

 

WEEK’S WORTH: For the week ending December 9, the Dow was up 3.06%, the NASDAQ gained 3.59%, and the S&P 500 increased 3.08%. The Russell 2000 climbed 5.62%, and the Wilshire 5000 finished 3.27% higher.

Compliance
Senator Cardin Reintroduces Progressive Tax Proposal
As tax reform talks loom in 2017, one Democratic Senator is pushing for “a comprehensive, progressive, pro-growth” approach that would protect the interests of employee benefit plans. Read more >
Providers Respond to Trump DOL Secretary Pick
President-elect Donald Trump has nominated CKE Restaurants CEO Andrew Puzder as Department of Labor (DOL) secretary. Puzder is a vocal critic of many current government policies including the Affordable Care Act (ACA), the DOL’s pending overtime regulations, and raising the minimum wage. In media coverage he has spoken about the importance of leaving management of labor issues and other aspects of business regulation to the states. Read more >
From the Magazine
Educating Participants About Retirement Income ‘Bucket’ Strategy
Despite the frequency of discussion about the need for retirement income, the 2016 PLANSPONSOR Defined Contribution (DC) Survey data on plan benchmarking shows many plans holding off on utilizing in-plan retirement income products. The implication of this is that significant numbers of defined contribution plan participants, upon retirement, are left to determine on their own the best way to organize and spend down their assets. One possible path forward for these participants is to craft a “bucket” strategy—preferably with the support of a financial adviser but, if necessary, on their own. Read more >
Small Talk

ON THIS DATE: In 1787, Pennsylvania became the second state to ratify the U.S. Constitution. In 1791, The Bank of the United States, also known as the First Bank, opened for business in Philadelphia, Pennsylvania. In 1800, Washington, D.C., was established as the capital of the United States. In 1870, Joseph H. Rainey of South Carolina became the first black lawmaker to be sworn into the U.S. House of Representatives. In 1896, Guglielmo Marconi gave the first public demonstration of radio at Toynbee Hall, London. In 1917, Father Edward Flanagan opened Boys Town in Nebraska. The farm village was for wayward boys. In 1979 it was opened to girls. In 1975, Sara Jane Moore pled guilty to a charge of trying to kill U.S. President Gerald Ford in San Francisco the previous September. In 1995, the U.S. Senate stopped a constitutional amendment giving Congress authority to outlaw flag burning and other forms of desecration against the American flag. In 1997, the U.S. Justice Department ordered Microsoft to sell its Internet browser separately from its Windows operating system to prevent it from building a monopoly of Web access programs. In 2000, the U.S. Supreme Court found that the recount ordered by the Florida Supreme Court in the 2000 U.S. Presidential election was unconstitutional. U.S. Vice President Al Gore conceded the election to Texas Governor George W. Bush the next day.

SURVEY SAYS: Last year, we asked about favorite holiday movies, so this year was time for our favorite holiday songs survey. Respondents could select from a list or choose their own. More than one-quarter (27.3%) of responding readers did choose their own, and among those, Little Drummer Boy had the most responses. Fourteen of the songs on the list received less than 1% of reader votes, while eight received less than 4% of votes. Three songs tied for fifth place. In comments left by readers, many named other songs they love. Some shared memories or other reasons why their favorite is their favorite. Several noted how radio stations start playing them too soon. Editor’s Choice goes to the reader who said: “I love Christmas music, but hate that nearly every local radio station plays only Christmas music for 6-8 weeks before Christmas. By the time the holiday finally arrives, I’m sick of it!” Thank you to everyone who participated in our survey! Read more >
Share the good news with a friend! Pass the NewsDash along—and tell your friends/associates they can sign up for their own copy. Read more >

Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

Advertising: Paul Zampitella paul.zampitella@strategic-i.com

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