Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
December 9th, 2014
Benefits & Administration
401(k) Plan Sponsors Actively Engaged in Plan Design
Employers sponsoring 401(k) plans use a range of employer match formulas and offer a variety of investment choices with lower fees. Most employers are contributing to the 401(k) plans they sponsor, with more than four out of five making contributions, according to a study by BrightScope Inc. and the Investment Company Institute (ICI). The most common type of employer contributions are simple matching formulas, where the employer matches a certain percentage of employee contributions up to a maximum percentage of employee salary.Read more >
From the Magazine
Q&A: Fiduciary Outsourcing
Lisa H. Barton, a partner with law firm Morgan, Lewis & Bockius LLP, discusses plan sponsors’ fiduciary responsibilities and options for outsourcing them.Read more >
Products, Deals & People
BNY Mellon Boutique Offers New Institutional Funds
New fund offerings from The Boston Company Asset Management (TBCAM), a Boston-based BNY Mellon boutique that invests in active equity, offer institutional investors exposure to an energy infrastructure strategy that utilizes master limited partnerships (MLPs) and an event-driven absolute return strategy.Read more >
Special Request from the GAO
If you are a defined contribution (DC) plan fiduciary who has considered adopting or has adopted a qualified default investment alternative (QDIA) for your plan, please consider answering a short questionnaire sponsored by PLANSPONSOR and the U.S. Government Accountability Office(GAO). Please note: GAO is not auditing or analyzing the policies or practices of any individual plan sponsor. All responses provided in this questionnaire will remain confidential. GAO will not attribute any provided information to any individual or company.Read more >
MOST READ ARTICLES
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2021 Plan Sponsor of the Year
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2020 Recordkeeping Survey
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A Checklist for Retirement Plan Committees
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Settlement Reached in Insperity 401(k) Excessive Fee, Self-Dealing Suit
Market Mirror

Yesterday, the Dow was down 106.31 points (0.59%) at 17,852.48, the NASDAQ closed 40.06 points (0.84%) lower at 4,740.69, and the S&P 500 decreased 15.06 points (0.73%) to 2,060.31. The Russell 2000 fell 15.12 points (1.28%) to 1,167.31, and the Wilshire 5000 lost 193.33 points (0.89%) to finish at 21,581.91.

On the NYSE, 3.2 billion shares changed hands, with 2.3 declining issues for every advancing issue. On the NASDAQ, 2.8 billion shares traded, with a near 3 to 1 lead for decliners.

The price of the 10-year Treasury note was up 14/32, decreasing its yield to 2.258%. The price of the 30-year Treasury bond increased, bringing its yield down to 2.910%.

Compliance
Fiduciaries of Fake Union Plan Ordered to Pay $4.7M
A federal judge has found the fiduciaries of a defunct national multi-employer benefit plan based in Cherry Hill, New Jersey, are liable for approximately $4.7 million in assets that were improperly diverted. James Doyle and Cynthia Holloway, fiduciaries to the Professional Industrial Trade Workers Union Health and Welfare Fund, must make restitution to the plan, with interest, for violating the Employee Retirement Income Security Act (ERISA). The court determined that Doyle and others used the fake Professional Industrial Trade Workers Union as a front for a scheme to operate a purported, union-sponsored employee benefit plan.Read more >
IRS Issues Determination Letter Request Guidance
The Internal Revenue Service (IRS) has provided the 2014 Cumulative List of Changes in Plan Qualification Requirements to be used by plan sponsors and practitioners submitting determination letter applications for plans during the period beginning February 1, 2015, and ending January 31, 2016. Plans using this Cumulative List will primarily be single employer individually designed defined contribution plans and single employer individually designed defined benefit plans that are in Cycle E. In a separate announcement, the IRS extended to June 30, 2015, the deadline for submitting on-cycle applications for opinion and advisory letters for pre-approved defined benefit plans for the plans’ second six-year remedial amendment cycle.Read more >
Small Talk

ON THIS DATE: In 1803, the 12th Amendment to the U.S. Constitution was passed by the U.S. Congress. With the amendment, Electors were directed to vote for a President and for a Vice-President rather than for two choices for President. In 1884, Levant M. Richardson received a patent for the ball-bearing roller skate. In 1921, a young engineer at General Motors named Thomas Midgeley Jr. discovered that when he added a compound called tetraethyl lead (TEL) to gasoline, he eliminated the unpleasant noises (known as “knock” or “pinging”) that internal-combustion engines make when they run. For more than five decades after his discovery, oil companies saturated the gasoline they sold with lead. In 1955, Sugar Ray Robinson knocked out Carl Olson and regained his world middleweight boxing title. In 1972, “I Am Woman” by Helen Reddy topped the U.S. pop charts. In 1983, “Scarface,” starring Al Pacino, opened in theaters. In 2002, United Airlines filed for Chapter 11 bankruptcy after losing $4 billion in the previous two years. It was the sixth largest bankruptcy filing in the U.S. at the time.

 

TUESDAY TRIVIA: As of 2013, the 10 largest U.S. company bankruptcies are Lehman Brothers Holdings, Washington Mutual, Worldcom, General Motors Corporation, CIT Group, Enron Corp., Conseco, MF Global Holdings, Chrysler and Thornburg Mortgage.

TRIVIAL PURSUITS: As big a hit as the movie “Scarface” was, it is not in the top 10 of the highest grossing Al Pacino movies. How many of the top 10 can you guess?Read more >
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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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