Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
February 12th, 2018
Benefits & Administration
Plan Withdrawals Continue to Effect Multiemployer Plans
Based on a partial year of data for 2016, 1.3% of all employers withdrew, affecting 19% of plans that covered 67% of all participants, the Society of Actuaries found. Withdrawal liability assessments were not nearly enough to cover these plan’s unfunded liabilities. Read more >
Plan Sponsors Should Remind Participants About the Saver’s Credit
Many participants do not know about the credit, the Transamerica Center for Retirement Studies found. Read more >
Study Shows Pension Funding Relief Helped DB Plans
When computing defined benefit (DB) plan liabilities for 2015 using unsmoothed corporate bond rates to discount liabilities, roughly 84% of plans had unfunded liabilities, versus 11% for plans using the smoothed bond rates, the Society of Actuaries found. Read more >
Products, Deals and People
Retirement Industry People Moves
ADP makes Financial Engines solution available to clients; TRA acquires third-party administration firm; HUB appoints vice president to help clients with health benefit solutions; and more. Read more >
The Illinois Teachers’ Retirement System has issued two formal “request for proposals” seeking firms to provide consulting services designed to help the System make prudent investment management decisions. Detailed information about both RFPs are posted on the system’s website. 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
Driving Cybersecurity with Participants and Providers
Economic Events

December 2017 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 $500.2 billion, up 1.2% from the revised November level and up 9.1% from the December 2016 level, the Census Bureau announced. The October 2017 to November 2017 percent change was revised from the preliminary estimate of up 1.5% to up 1.9%.

 

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

Market Mirror

Friday, the Dow gained 330.44 points (1.38%) to finish at 24,190.90, the NASDAQ closed 97.33 points (1.44%) higher at 6,874.49, and the S&P 500 increased 38.55 points (1.49%) to 2,619.55. The Russell 2000 was up 14.04 points (0.96%) at 1,477.84, and the Wilshire 5000 climbed 337.28 points (1.26%) to 27,159.39.

 

The price of the 10-year Treasury note was down 8/32, increasing its yield to 2.857%. The price of the 30-year Treasury bond decreased 13/32, bringing its yield up to 3.161%.

 

WEEK’S WORTH: For the week ending February 9, the Dow plunged 5.21%, the NASDAQ lost 5.06%, and the S&P 500 dropped 5.16%. The Russell 2000 finished 4.49% lower, and the Wilshire 5000 fell 5.09%.

Compliance
Budget Deal Includes Provisions Affecting Retirement Plans
Among other things, the bill allows for hardship withdrawals from more contribution types. Read more >
Small Talk

ON THIS DATE: In 1733, Savannah, Georgia, was founded by English colonist James Oglethorpe. In 1870, in the Utah Territory, women gained the right to vote. In 1878, Frederick W. Thayer patented the baseball catcher’s mask. In 1879, the first artificial ice rink opened in North America at Madison Square Garden in New York City. In 1892, President Abraham Lincoln’s birthday was declared to be a national holiday. In 1909, the National Association for the Advancement of Colored People (NAACP) was founded. In 1915, the cornerstone of the Lincoln Memorial was laid in Washington, D.C. In 1924, U.S. President Calvin Coolidge made the first presidential political speech on radio. In 1971, James Cash (J.C.) Penney died at the age of 95. The company closed for business for one-half day as a memorial to the company’s founder. In 1973, the State of Ohio went metric, becoming the first in the U.S. to post metric distance signs. In 1973, American prisoners of war were released for the first time during the Vietnam conflict. In 1998, a U.S. federal judge declared that the presidential line-item veto was unconstitutional. In 2002, Kenneth Lay, former Enron CEO, exercised his constitutional rights and refused to testify to the U.S. Congress about the collapse of Enron.

SURVEY SAYS RESPONSES: Last week, I asked NewsDash readers, “Which Super Bowl 52 commercial was your FAVORITE?” I did not include ads for games or movie trailers in the list. If you need a reminder of what the ads depicted, you can find all on this site: https://www.nfl.com/super-bowl/commercials. The top pick among responding readers among the list was “Danny DeVito becomes human M&M,” selected by 15.2%. This was followed by “What happens when Alexa loses her voice,” selected by 13% of respondents. Of course results would have been different had I include the ad for the NFL Eli Manning and Odell Beckham Jr. parodying “Dirty Dancing,” as indicated in verbatim responses. I hate I missed including that one, as it made me LOL. Many readers who left comments said the commercials were just not as good as in the past; a couple pointed out how great the game was, though. Editor’s Choice goes to the reader who said: “The ‘This is Getting Old’ ad is exactly what we’re all about, using whatever tactic we can find to inspire/encourage/shame/scare employees into preparing to retire someday.” 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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