Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
February 8th, 2019

2019 Service Stars

Introducing the 2019 individual and team service representatives recognized for exceeding expectations in their support of plan sponsors. Read more >
Benefits & Administration
Attention to Retirement Plan Digital Communications Increasingly Important
A paper authored by Shlomo Benartzi, senior academic adviser at the Voya Behavioral Finance Institute for Innovation, promotes the idea of a “digital fiduciary,” and Andrew Way, with Corporate Insight, weighs in on best practices for digital communications. Read more >
Study Shows Where HSA-Users Spend Their Savings
Lively Inc., a health savings account (HSA) provider, has released its “2018 HSA Spend Report,” revealing what health care expenses consumers encountered most last year. According to the study, Lively’s average HSA-holder spent 93% of his account savings on household health care costs last year. Lively reports that this trend could block participants from investing their HSA assets, which could ultimately help them afford the expected $280,000 in health costs throughout retirement. Read more >
MOST READ ARTICLES
1
EBRI Reassesses Whether DC or DB Plans Are Better for Participants
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What Baby Boomers Can Do When Market Volatility Hits Near Retirement
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Open MEPs Will Be a Retirement Plan Market Disruptor
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2019 Best in Class 401(k) Plans
5
How and When to Encourage Use of Managed Accounts
Products, Deals and People
Legg Mason to Close Three ETFs in March
It is expected that the funds will cease trading on NASDAQ on or about March 15, and subsequently will be delisted. Read more >
Economic Events

In the week ending February 2, the advance figure for seasonally adjusted initial claims for unemployment insurance was 234,000, a decrease of 19,000 from the previous week’s unrevised level of 253,000, the Labor Department reported. The four-week moving average was 224,750, an increase of 4,500 from the previous week’s unrevised average of 220,250.

The average interest rate for a 30-year fixed-rate mortgage is 4.41%, down from 4.46% one week ago, according to Freddie Mac. The average interest rate for a 15-year fixed-rate mortgage is 3.84%, down from 3.89%.

Market Mirror

Thursday, the Dow lost 220.77 points (0.87%) to finish at 25,169.53, the NASDAQ closed 86.93 points (1.18%) lower at 7,288.35, and the S&P 500 decreased 25.56 points (0.94%) to 2,706.05. The Russell 2000 was down 12.40 points (0.825) at 1,505.63, and the Wilshire 5000 fell 253.97 points (0.90%) to 28,038.59.

The price of the 10-year Treasury note increased 13/32, bringing its yield down to 2.659%. The price of the 30-year Treasury bond climbed 23/32, decreasing its yield to 3.000%.

Compliance
PBGC Issues Proposal for Computing Withdrawal Liability Under Multiemployer Plans
The proposed amendments would affect the determination of a withdrawing employer’s liability under a multiemployer plan and annual withdrawal liability payment amount when the plan has had benefit reductions, benefit suspensions, surcharges or contribution increases that must be disregarded. Read more >
Retirement Enhancement and Savings Act Reintroduced
The bipartisan bill, which enjoys broad industry support, would add flexibility for small businesses to join multiple employer plans, among other provisions. Read more >
Investing
Institutional Investors End 2018 Down More Than 4%
“Equity exposure weighed on plan performance in the fourth quarter,” says Jason Schwarz, president, Wilshire Analytics and Wilshire Funds Management. Read more >
Small Talk

ON THIS DATE: In 1693, a charter was granted for the College of William and Mary in Williamsburg, Virginia. In 1861, the Confederate States of America was formed. In 1861, a Cheyenne delegation and some Arapaho leaders accepted a new settlement (Treaty of Fort Wise) with the U.S. Federal government. The deal ceded most of their land but secured a 600-square mile reservation and annuity payments. In 1896, the Western Conference was formed by representatives of Midwestern universities. The group later changed its name to the Big 10 Conference. In 1910, William D. Boyce incorporated the Boy Scouts of America. In 1922, the White House began using radio after President Warren Harding had one installed. In 1963, the Kennedy administration prohibited travel to Cuba and made financial and commercial transactions with Cuba illegal for U.S. citizens. In 1963, Lamar Hunt, owner of the American Football League franchise in Dallas, Texas, moved the operation to Kansas City. The new team was named the Chiefs. In 1978, Senate deliberations were broadcast on radio for the first time. The subject was the Panama Canal treaties. In 1985, “The Dukes of Hazzard” ended its 6-1/2 year run on CBS television.

SURVEY SAYS: NewsDash readers seem shy this week about sharing their plans for, and their thoughts about, celebrating Valentine’s Day, so we are holding the survey open. Read more >

And now it’s time for FRIDAY FILES!

Bowling fails, but with a couple of “successes.” Read more >
Getting a phone call can be very exciting—for babies. Read more >
In Minnesota, a man used the polar vortex to demonstrate the saying, “freezing your pants off.” Read more >

In Hong Kong, workers at a potato chip factory made a scary finding among a shipment of imported potatoes—a German-made World War I grenade. South China Morning Post reported a military historian said the grenade had likely been dug up by accident by potato harvesters in France. Police said they used a “high-pressure water firing technique” to safely detonate the weapon.

In Lee County, Florida, a Papa John’s delivery driver went to the door of a house where he was delivering pizzas when a 14-year-old girl allegedly popped out of some nearby bushes and stole his unlocked 2006 Ford Taurus. The girl first drove to Lehigh Acres Middle School, but when a policeman approached the car, she drove off quickly. Her wild ride was tracked by a police helicopter, according to the Orlando Sentinel, and she was eventually apprehended. Her father told TV station WBBH that his daughter’s plan was to meet her boyfriend.

In Fall River, Massachusetts, a woman walked into a credit union and approached a teller. She hesitated, then told the teller, “give me a minute,” and went to a counter and wrote on a piece of paper. However, according to the Associated Press, she ripped up the note, dropped the pieces in the trash and walked out. Bank employees pieced the note together and it said: “Give me the money.” Police are looking for the woman.

In Hilgermissen, Germany, there are no street names, and there won’t be any time soon. Hilgermissen was formed in the 1970s out of several villages. Addresses currently consist of a house number and the name of a former village, a system that has become more unwieldy as new buildings are added, according to the Associated Press. Official results from a referendum held on Sunday showed 60% of voters in the municipality rejected the local council’s plan to name the streets, while 40% supported the proposal. The vote is binding for two years.

In New Orleans, Louisiana, a man entered a Popeyes fast food chicken restaurant and tried to steal money from the register, NOLA.com/The Times-Picayune reports. But police say the register wouldn’t budge so he did what he thought was the next best thing. He took some fried chicken and left. He was arrested and charged with simple robbery and simple battery.

Hope everyone has a great weekend!

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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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