| Benefits & Administration | New Mortality Tables Lower Pension Buyout Cost | During December 2014, the average cost of
purchasing annuities from an insurer to cover pension liabilities decreased
from 109.0% to 105.3% of the accounting liability, according to the Mercer U.S.
Pension Buyout Index. The Buyout Index reflects that many plan sponsors are
using a new mortality assumption to measure the balance sheet value of their
pension obligations, in response to the Society of Actuaries’ publication of
the RP-2014 mortality table and MP-2014 mortality improvement scale last
October. This update increased balance sheet liabilities and decreased both the
cost of buying an annuity as a percentage of the projected benefit obligation
(PBO) and the economic cost of maintaining the plan as a percentage of the PBO.Read more > | | Products, Deals & People | Mercer Releases Social Security and Medicare Guides | Mercer has released its “2015 Guide to Social
Security” and “2015 Medicare” booklets. The guides provide simple explanations
of both national programs, discuss recent changes, and evaluate cost and
benefit amounts for 2015. The publications include real-life examples and can
be used to complement retirement planning advice, Mercer says.Read more > | | Sponsored message from Financial Engines | PLANSPONSOR interviews Christopher Jones, Chief Investment Officer at Financial EnginesRead more > | | Economic Events | The U.S. Census Bureau of the Department of
Commerce announced that construction spending during December 2014 was estimated
at a seasonally adjusted annual rate of $982.1 billion, 0.4% above the revised November
estimate of $978.6 billion. The December figure is 2.2% above the December 2013
estimate of $961.2 billion. |
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| Market Mirror | Yesterday,
the Dow closed 196.09 points (1.14%) higher at 17,361.04, the NASDAQ increased
41.45 points (0.89%) to 4,676.69, and the S&P 500 climbed 25.86 points
(1.30%) to 2,020.85. The Russell 2000 was up 10.12 points (0.87%) at 1,175.52,
and the Wilshire 5000 gained 250.03 points (1.19%) to finish at 21,310.47.
On the NYSE,
3.2 billion shares traded, with 2.7 advancing issues for every declining issue.
On the NASDAQ, 2.8 billion shares changed hands, with a 1.7 to 1 ratio of
advancers to decliners.
The price of the 10-year Treasury note was down 9/32,
increasing its yield to 1.673%. The price of the 30-year Treasury bond fell
27/32, bringing its yield up to 2.262%.
| | Compliance | Internal Controls Can Help Prevent Plan Fraud | The Internal Revenue Service (IRS) said its
Employee Plans Compliance Unit (EPCU) Fraud project revealed a significant
percentage of plans experienced fraud losses due to weak Internal controls and
risky investments. The
agency suggested a list of helpful internal controls for retirement plan
sponsors.Read more > | Comcast a Victim of Retirement Plan Fraud | Federal prosecutors in Philadelphia say Laura
Wayne, previously employed as an administrator of employee retirement accounts
at Comcast Corporation, committed wire fraud and other crimes against the cable
and internet company, resulting in the theft of approximately $124,876. According
to U.S. Attorney Zane David Memeger, Wayne created dummy retirement accounts
that appeared to be 401(k) accounts managed by Fidelity Company for the benefit
of Comcast employees.Read more > | Reference Lists for Plan Qualification Requirements | The Internal Revenue Service (IRS) offers
fillable reference lists of changes in qualification requirements for
retirement plans. Reference lists are tools to help plan sponsors ensure that
their plan document incorporates all relevant mandatory and optional changes in
plan qualification requirements. The agency recommends including them when applying for
a retirement plan determination letter.Read more > | | Investing | Institutional Investors Increasingly Seek SRI | Socially responsible investing (SRI) mandates
are gaining popularity among institutional investors, according to Cerulli
Associates research. More than 50% of institutional asset managers have
recently received client requests for SRI or environmental, social, governance
(ESG) mandates.Read more > | | Small Talk | ON
THIS DATE: In 1913,
the 16th Amendment to the U.S. Constitution was ratified. It authorized the
power to impose and collect income tax. In 1924,
Woodrow Wilson, the 28th president of the United States, died in Washington,
D.C., at the age of 67. In 1959,
rising American rock stars Buddy Holly, Ritchie Valens and J.P. “The Big
Bopper” Richardson were killed when their chartered Beechcraft Bonanza
plane crashed in Iowa a few minutes after takeoff from Mason City on a flight
headed for Moorehead, Minnesota. In 2002,
the New England Patriots defeated the St. Louis Rams, 20-17, to take home their
first Super Bowl victory. In 2005,
Alberto Gonzales won Senate confirmation as the nation’s first Hispanic
attorney general. In 2009, Eric
Holder was sworn in as Attorney General of the United States—the
first African-American to hold the post.
TUESDAY
TRIVIA: Gelatin, used in making Jell-O, is made by curing,
acid, and alkali processes to extract the dried collagen hydrolysate from pork
skins; pork, horse and cattle bones; or split cattle hides.
| TRIVIAL PURSUITS: From
where does the phrase ‘giving someone the third degree’ originate?Read more > | Share the good news with a friend! Pass the Dash along – and tell your
friends/associates they can sign up for their own copy.Read more > | News from PLANSPONSOR.com
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