Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
December 2nd, 2016
Benefits & Administration
Small Businesses Buy Into Safe Harbor 401(k) Plan Design
Eric Droblyen, president and COO of Employee Fiduciary, studied the 2,767 small business 401(k) plans for which the firm provides Employee Retirement Income Security Act (ERISA) compliance services and found 68% of plans use a safe harbor 401(k) plan design to avoid annual ADP/ACP and top heavy nondiscrimination testing. The analysis reveals other plan design features among small business 401(k)s.Read more >
HSA Usage Continues Growth
Data from the Employee Benefit Research Institute’s (EBRI)’s health savings account (HSA) database shows nearly 30% of employers offered an HSA-eligible health plan in 2015. HSAs with investments had higher account balances than those that do not offer investments.Read more >
MOST READ ARTICLES
Research
2021 Recordkeeping Survey
Compliance
DOL Clears Up Timing for Lifetime Income Illustrations
Administration
Addressing Forgotten Accounts Can Improve Retirement Savings Outcomes
Nearly Half of Corporate Pensions Considering Lump-Sum Payouts
While a majority of plan sponsors are hedging interest rate exposure using LDI strategies, many are also turning to lump-sum distributions to reduce the absolute size of pension liability, a survey found.Read more >
Products, Deals and People
Investment Products and Services
T. Rowe Price expands 401(k) brokerage services with Charles Schwab; USAA launches R6 retirement share classes; T. Rowe Price introduces Total Return Fund; and more.Read more >
Economic Events

The U.S. Census Bureau of the Department of Commerce announced that construction spending during October was estimated at a seasonally adjusted annual rate of $1,172.6 billion, 0.5% above the revised September estimate of $1,166.5 billion. The October figure is 3.4% above the October 2015 estimate of $1,134.4 billion.

In the week ending November 26, the advance figure for seasonally adjusted initial claims for unemployment insurance was 268,000, an increase of 17,000 from the previous week’s unrevised level of 251,000, the Labor Department reported. The four-week moving average was 251,500, an increase of 500 from the previous week’s unrevised average of 251,000.

The average interest rate for a 30-year fixed-rate mortgage is 4.08%, up from 4.03% one week ago, according to Freddie Mac. The average interest rate for a 15-year fixed-rate mortgage is 3.34%, up from 3.25%.
Market Mirror

Thursday, the Dow closed 68.35 points (0.36%) higher at 19,191.93, the NASDAQ lost 72.57 points (1.36%) to finish at 5,251.11, and the S&P 500 was down 7.73 points (0.35%) at 2,191.08. The Russell 2000 decreased 8.53 points (0.65%) to 1,313.80, and the Wilshire 5000 closed 76.52 points (0.33%) lower at 22,914.55.

On the NYSE, 3.1 billion shares changed hands, and on the NASDAQ, 2.9 billion shares traded, with 1.6 declining issues for every advancing issue on both exchanges.

The price of the 10-year Treasury note decreased 17/32, bringing its yield up to 2.448%. The price of the 30-year Treasury bond fell 1 12/32, increasing its yield to 3.111%.
Compliance
403(b) Plan Participant Files Suit Over Voya Stable Value Funds
Darlene Dezelan has filed a lawsuit on behalf of the Cedars-Sinai Medical Center 403(b) Retirement Plan, and on behalf of all other similarly situated employee pension benefit plans covered under the Employee Retirement Income Security Act (ERISA), alleging that Voya Retirement Insurance and Annuity Company improperly profited from stable value funds offered through annuity contracts. The suit claims Voya collects hundreds of millions of dollars annually in undisclosed compensation.Read more >
Court Allows Restatement of Claims Against Stable Value Fund Provider
In a lawsuit similar to one filed against MassMutual earlier this year, a federal judge has asked for an amended complaint showing that a stable value fund provider set interest crediting rates below actual rates of return in order to make a profit. A federal judge found that that New York Life provided documentation showing there was no spread between the internal rate of return and the interest crediting rate New York Life set for stable value funds.Read more >
Small Talk

ON THIS DATE: In 1804, Napoleon was crowned emperor of France at the Cathedral of Notre Dame in Paris. In 1816, the first savings bank in the U.S., the Philadelphia Savings Fund Society, opened for business. In 1823, U.S. President James Monroe outlined his doctrine opposing European expansion in the Western Hemisphere. In 1901, Gillette patented the KC Gillette Razor. It was first razor to feature a permanent handle and disposable double-edge razor blades. In 1927, Ford Motor Company unveiled the Model A automobile. It was the successor to the Model T. In 1939, New York’s La Guardia Airport began operations. In 1961, Cuban leader Fidel Castro declared in a nationally broadcast speech that he was a Marxist-Leninist and that he was going to lead Cuba to communism. In 1969, the Boeing 747 jumbo jet got its first public preview as 191 people flew from Seattle, Washington, to New York City. Most of the passengers were reporters and photographers. In 1970, the Environmental Protection Agency began operations. In 1982, doctors at the University of Utah implanted a permanent artificial heart in the chest of retired dentist Barney Clark. He lived 112 days with the device. The operation was the first of its kind. In 1995, NASA launched a U.S.-European observatory on a $1 billion dollar mission intended to study the sun. In 2001, Enron Corp. filed for Chapter 11 reorganization. The filing came five days after Dynegy walked away from a $8.4 billion buyout. It was the largest bankruptcy in U.S. history.

 

And now it’s time for FRIDAY FILES!
Child can’t find his goggles, even as he moves them out of the way.Read more >
In New York City, a 5-year-old Shih Tzu has a very expensive car collection.Read more >

In Amherst, Massachusetts, a college student attempted to enter a bar and was asked for proof of age first. The Associated Press reports she attempted to hand the bouncer a slice of pizza as proof of age and slapped him when he refused her entry.

In Los Angeles, California, two women started a brawl over a parking space in a parking lot. The local ABC station reports that fists were flying, then one woman got into a white SUV and smashed into a silver SUV. The vehicles collided several more times as they maneuvered back and forth in the small parking lot. The SUVs headed into the street where the white SUV was spotted delivering one more hit to the silver SUV. The white SUV then mowed down a fire hydrant, sending a geyser of water into the air.

In Cortlandville, New York, a man was pulled over for speeding. The trooper who stopped the man found that he didn’t have a valid driver’s license. According to the Associated Press, a check of the man’s driving record showed that his license has been suspended a total of 46 times.
In Hemel Hempstead, Hertfordshire, England, a couple returned to their home to find a note saying the Dacorum Borough Council had removed their doormat, claiming it was a health and safety hazard, and demanded 40 pounds for its return. The couple said the doormat had been outside their door for months after being left by previous tenants. Does it look dangerous to you? [pic]Read more >
Have a wonderful weekend!
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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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