Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
December 27th, 2016
Benefits & Administration
A survey from IonTuition, a provider of student loan debt help, found 87.7% of respondents believe employer-sponsored student loan contribution programs are significant. Furthermore, nearly two-thirds (65.4%) reported difficulty in paying student loan debt, and nearly one-third (32.4%) lack the confidence to complete payments. Read more >
The California Public Employees’ Retirement System (CalPERS) Board of Administration voted to lower the discount rate from 7.5% to 7% over the next three years. This incremental lowering of the discount rate will give employers more time to prepare for the changes in contribution costs, the fund said. Read more >
Recordkeepers Provide a Wide Range of Services
Retirement plan sponsors should consider what service offerings from recordkeepers are right for them and their participants when making a selection. Read more >
MOST READ ARTICLES
1
J.P. Morgan Agrees to Settle Stable Value Funds Suit
2
Individuals, Employers and Government All Play a Part in Retirement Readiness
3
Participant Loans: A Fiduciary Storm Brewing?
4
What to Know About Financial Audits Filed with Form 5500s
5
2019 PLANSPONSOR National Conference
Plan Sponsors Should Focus on Different Demographic Groups
Different retirement plan participant demographic groups face various challenges. Read more >
Products, Deals and People
Prudential launches new TDF suite; Natixis releases ESG TDFs; and Vanguard reports reduced expense ratios. Read more >
Retirement Industry People Moves
Lockton expands retirement business; Wagner Law Group comes to D.C.; USI acquires Ball Peoples; and more. Read more >
Sponsored message from MetLife
Protecting Participant Benefits
How a pension risk transfer to an insurer can enable plan sponsors to reduce plan risks. Read more >
Economic Events

Sales of new single-family houses in November were at a seasonally adjusted annual rate of 592,000, according to estimates released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 5.2% above the revised October rate of 563,000 and is 16.5% above the November 2015 estimate of 508,000.

THE ECONOMIC WEEK AHEAD: Today, the Conference Board will reveal its Consumer Confidence Index for December. Thursday, the Labor Department will issue its initial claims report.

Market Mirror

Friday, the Dow increased 14.93 points (0.07%) to 19,933.81, the NASDAQ closed 15.27 points (0.28%) higher at 5,462.69, and the S&P 500 ticked up 2.83 points (0.13%) to 2,263.79. The Russell 2000 was up 8.85 points (0.65%) at 1,371.50, and the Wilshire 5000 gained 43.55 points (0.18%) to close at 23,671.86.

On the NYSE, 3.1 billion shares traded, with 1.4 advancing issues for every declining issue. On the NASDAQ, 2.9 billion shares traded, with a more than 2 to 1 lead for advancers.

The price of the 10-year Treasury note was up 3/32, decreasing its yield to 2.542%. The price of the 30-year Treasury bond increased 6/32, bringing its yield up to 3.119%.

WEEK’S WORTH: For the week ending December 23, the Dow finished 0.46% higher, the NASDAQ gained 0.47%, and the S&P 500 was up 0.25%. The Russell 2000 climbed 0.52%, and the Wilshire 5000 increased 0.30%.

Compliance
New 401(k) Excessive Fee Suit Filed Against Delta Air Lines
Participants in Delta Air Line’s Delta Family Care Savings Plan have filed a proposed class action lawsuit against the company, the plan’s administrative committee and other fiduciaries alleging violations of the Employee Retirement Income Security Act (ERISA) regarding excessive fees. Among the charges is that, prior to 2011, the plan included too many, and duplicative, investment options. Read more >
New Trends in ERISA Litigation Appeared in 2016
Employee Retirement Income Security Act (ERISA) lawsuits against retirement plans in 2016 have included new allegations not seen before and have spread to target different types of plans and plan sponsors, and experts predict more of the same in 2017. Read more >
Small Talk

ON THIS DATE: In 1845, Dr. Crawford Williamson Long used anesthesia for childbirth for the first time. The event was the delivery of his own child in Jefferson, Georgia. In 1904, James Barrie’s play “Peter Pan” premiered in London. In 1945, the World Bank was created with an agreement signed by 28 nations. In 1947, the children’s television program “Howdy Doody,” hosted by Bob Smith, made its debut on NBC. In 1951, in Cincinnati, Ohio, a Crosley automobile, with a steering wheel on the right side, became the first vehicle of its kind to be placed in service for mail delivery. In 1978, Spain adopted a new constitution and became a democracy after 40 years of dictatorship. In 2001, U.S. President George W. Bush granted China permanent normal trade status with the United States. In 2002, Clonaid announced the birth of the first cloned human baby. The baby had been born December 26.

TRIVIAL PURSUITS: What did the word “with” mean in Old English? 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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