Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
December 3rd, 2018
Compliance
Missing Deadline, Joint Committee Continues Work on Multiemployer Pension Crisis
Senators and co-chairmen Orrin Hatch and Sherrod Brown said they missed their stated deadline for voting on a package of solutions, but the Joint Select Committee on the Solvency of Multiemployer Pension Plans will continue its work during the new session of Congress. Read more >
Butch Lewis Act Said to Only Temporarily Mask Multiemployer Pension Deficits
In a new white paper, The Pension Analytics Group analyzed the effectiveness of the proposed Butch Lewis Act on reducing deficits of multiemployer pension plans. While the act would enable the plans to continue paying full benefits for an average of 16 years beyond what would be possible without a loan and would significantly reduce pressure on the Pension Benefit Guaranty Corp. (PBGC), The Pension Analytics Group says, it would only temporarily mark the deficits, as opposed to reduce them. “Eventually, taxpayers and the PBGC will face losses associated with the program in the form of Treasury paid-for loan defaults and PBGC assistance payments.” Read more >
Benefits & Administration
Strategies for DC Plans to Mitigate Risks in 2019
In a new white paper, Willis Towers Watson (WTW) outlines nine steps plan sponsors can take to mitigate risks in defined contribution (DC) plans in the coming year. Read more >
MOST READ ARTICLES
1
IRS Announces 2019 HSA Contribution Limits
2
4% Rule Not a Reliable Retirement Income Withdrawal Strategy for All People
3
Lawsuit Argues MetLife Pension Calculations Use Outdated Mortality Table
4
Financially Well Employees Buoy the Bottom Line
5
401(k) Plan Sponsors Enhancing Plan Design
Economic Events

THE ECONOMIC WEEK AHEAD: Today, the Census Bureau will report about construction spending for October. Thursday, the Labor Department will release its initial claims report, and the Census Bureau will report about factory orders for October. Friday, the Bureau of Labor Statistics will reveal the unemployment rate for November, and the Census Bureau will report about wholesale trade for October.

Market Mirror

Friday, the Dow gained 199.62 points (0.79%) to finish at 25,538.46, the NASDAQ closed 57.45 points (0.79%) higher at 7,330.54, and the S&P 500 increased 22.41 points (0.82%) to 2,760.17. The Russell 2000 was up 7.88 points (0.52%) at 1,533.27, and the Wilshire 5000 climbed 214.59 points (0.76%) to 28,488.87.

 

The price of the 10-year Treasury note was up by 9/32, decreasing its yield to 2.99%. The price of the 30-year Treasury bond was up 18/32, decreasing its yield to 3.296%.

 

WEEK’S WORTH: For the week ending November 30, the Dow gained 5.16%, the NASDAQ climbed 5.64%, and the S&P 500 finished 4.85% higher. The Russell 2000 was up 3.00%, and the Wilshire 5000 increased 4.75%.

Sponsored message from Franklin Templeton
A New Idea to Improve DC Plans
As Americans approach retirement, their needs change. This calls for an approach to enhancing DC plans with more tools, communications, and income solutions for near retirees. The solution? The Retirement Tier. Read more >
From the Magazine
2018 DC Survey: Plan Benchmarking
The findings of the 2018 PLANSPONSOR Defined Contribution (DC) Survey: Plan Benchmarking show improved use of plan design. Roth provisions are on the rise, effective match levels are similar to what they have been, fees seem to be trending downward slowly, automatic features are somewhat more prevalent, and overall participation rates are ticking up. Whether alone, or through partnership with recordkeeping plan providers and/or advisers and consultants, plan sponsors are working to make sure their employees take advantage of all of the features a defined contribution plan has to offer, and it appears those employees are benefitting. Most years, the survey results indicate few surprises, but this year a couple of data points are worth noting. Read more >
Products, Deals and People
Retirement Industry People Moves
DWS hires municipal bond director; PBGC announces several leadership appointments; Principal International names retirement income solutions leader; and more. Read more >
Small Talk

ON THIS DATE: In 1818, Illinois was admitted as the 21st state of the union. In 1828, Andrew Jackson was elected president of the United States. In 1833, Oberlin College in Ohio opened as the first truly coeducational school of higher education in the United States. In 1835, in Rhode Island, the Manufacturer Mutual Fire Insurance Company issued the first fire insurance policy. In 1931, Alka Seltzer was sold for the first time. In 1947, the Tennessee Williams play “A Streetcar Named Desire” opened at Broadway’s Ethel Barrymore Theater. In 1950, Paul Harvey began his national radio broadcast. In 1967, in Cape Town, South Africa, a team of surgeons headed by Dr. Christian Barnard, performed the first human heart transplant on Louis Washkansky. Washkansky only lived 18 days. In 1973, Pioneer 10 sent back the first close-up images of Jupiter. In 1982, doctors at the University of Utah Medical Center removed the respirator of Barney Clark. The retired dentist had become the world’s first recipient of a permanent artificial heart only one day before. In 1997, Pierce Brosnan received a star on the Hollywood Walk of Fame.

SURVEY SAYS RESPONSES: Last week, I asked NewsDash readers about their plans for shopping online while on the clock. Last Monday, which was Cyber Monday, nearly two-thirds (65.1%) of responding readers said they did not shop online while at work. Fourteen percent admitted they did shop online while at work using a work computer or device, 11.6% shopped online while at work using their own electronic device, and 9.3% did so using both work and personal devices. The same percentage of respondents who said they did not shop online while at work on Cyber Monday said they do not intend to or do not plan to continue to shop online while at work this holiday season, while the rest (34.9%) said they do. Among responding readers who left comments, quite a few expressed that they feel it is wrong to shop online while at work. However, some said they don’t do so because they are too busy or because they don’t want others to see their personal business. Then there were those who said they do shop online while at work because they don’t have time outside of work. Editor’s Choice goes to the reader who said: “I’ll quit shopping while ‘on the clock’ when I am allowed to quit working while ‘not on the clock.’” Thanks to all who responded to the survey! Read more >
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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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

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