Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
February 9th, 2018
Benefits & Administration
DB Plans Have a Great Start in 2018
Organizations that track defined benefit (DB) plan funded status estimate funding increases from 3% to 5% in January, depending on the tracking method. While January was a great month for defined benefit (DB) plan funded status, recent market volatility underscores how important risk management is, says Matt McDaniel, with Mercer. Read more >
Boomers Want Retirement Income They Cannot Outlive
Most Baby Boomers are unsure they have saved enough, fixed income annuity provider Annexus found in a survey. Only 33% are confident they have adequate retirement savings. Correspondingly, 80% said their No. 1 retirement goal is to have a reliable source of income that they cannot outlive. However, 45% said they do not know how to select a retirement income product. Read more >
Morningstar Paper Lays Out Method to Determine the Best QDIA
Recent technological advancements, along with increased data availability and quality, enable plan sponsors to stop guessing and move beyond heuristics to use detailed data on individual participants to make a robust, data-driven selection of an appropriate qualified default investment alternative (QDIA). Morningstar Investment Management staff detail this in their new paper, “Stop Guessing: Using Participant Data to Select the Optimal QDIA.” The framework offered also answers the question, “If the plan sponsor could improve the average fit for its demographic, what should it pay for that?” Read more >
MOST READ ARTICLES
1
House Committee Advances Bill to Establish Union Pension Lifeline Program
2
The Senate Math That Could Block SECURE Act
3
Adidas Sued Over Excessive Fees for 401(k) Participants
4
Open MEPs Not for Every Plan Sponsor
5
(b)lines Ask the Experts – Proper Delivery Method for SPDs
Products, Deals and People
Investment Products and Services Launches
ISS creates environmental and social scoring solution; Morningstar partners with FTSE Russell to increase index marketplace; Franklin Templeton adds ETFs to LibertyShares lineup; and more. Read more >
Economic Events

In the week ending February 3, the advance figure for seasonally adjusted initial claims for unemployment insurance was 221,000, a decrease of 9,000 from the previous week’s unrevised level of 230,000, the Labor Department reported. The four-week moving average was 224,500, a decrease of 10,000 from the previous week’s unrevised average of 234,500. This is the lowest level for this average since March 10, 1973, when it was 222,000.

The average interest rate for a 30-year fixed-rate mortgage is 4.32%, up from 4.22% one week ago, according to Freddie Mac. The average interest rate for a 15-year fixed-rate mortgage is 3.77%, up from 3.68%.

Market Mirror

Thursday, the Dow plunged 1,032.89 points (4.15%) to 23,860.46, the NASDAQ fell 274.83 points (3.90%) to 6,777.16, and the S&P 500 lost 100.58 points (3.75%) to finish at 2,581.08. The Russell 2000 dropped 44.18 points (2.93%) to 1,463.79, and the Wilshire 5000 plummeted 1,002.75 points (3.60%) to 26,822.11.

The price of the 10-year Treasury note was unchanged, with its yield at 2.830%. The price of the 30-year Treasury bond decrease 13/32, bringing its yield up to 3.134%.

Compliance
5th Circuit Affirms Dismissal of RadioShack Stock Drop Suit
The court found participant claims did not meet standards set forth in Fifth Third Bank v. Dudenhoeffer. Read more >
Budget Bill Would Create Committee for Multiemployer Pension Reform
The law would have the committee introduce legislation to address the pension crisis by this December. Read more >
Small Talk

ON THIS DATE: In 1825, the U.S. House of Representatives elected John Quincy Adams president. No candidate had received a majority of electoral votes. In 1861, the Provisional Congress of the Confederate States of America elected Jefferson Davis as its president. In 1870, the United States Weather Bureau was authorized by Congress. The bureau is officially known as the National Weather Service (NWS). In 1895, Volley Ball was invented by W.G. Morgan. In 1942, the U.S. Joint Chiefs of Staff held its first formal meeting to coordinate military strategy during World War II. In 1942, daylight-saving “War Time” went into effect in the U.S. In 1943, during World War II, the battle of Guadalcanal ended with an American victory over Japanese forces. In 1950, U.S. Senator Joseph McCarthy charged that the State Department was riddled with Communists. In 1960, the first star was placed on the Hollywood Walk of Fame. The star was for Joanne Woodward. In 1969, the Boeing 747 flew its inaugural flight. In 1997, “The Simpsons” became the longest-running prime-time animated series. “The Flintstones” held the record previously.

A unique way to pull a tooth. (The dad seems more excited about it than the girl). Read more >
This is how to take your dog for a ride on the sled. Read more >
This dog can bark softer on command. Read more >

In Woodbridge, Virginia, a man dreamed about the numbers 3-10-17-26-32 and when he woke, he used them in four identical Cash 5 tickets. The numbers hit, making all four tickets winners of the $100,000 top prize and earning him $400,000, the Huffington Post reports.

 

In Kittery, Maine, a woman bought a bag of store-brand romaine lettuce and used it one day to make a salad. According to the Associated Press, she said after a couple of bites, her fork got stuck—in a 3-inch lizard, minus the tail.

 

In Beaufort, North Carolina, workers at an auto parts store tried to help a man get his truck out of a ditch. That’s when they discovered items stolen from their own store in the truck. Police were called to the scene and that’s when they also discovered the man had stolen a large truck to try to get his own truck out of the ditch, the Associated Press reports.

 

In Peterhead, Scotland, a man called police to report the presence of a large cat with stripes on his farm. Officers dispatched several vehicles and contacted a nearby wildlife park to see if a tiger had escaped. There was a 45-minute standoff before officers realized the tiger in question was just a giant stuffed toy, according to the New York Post. The police said the man was not a prankster and was in real fear. It is not yet known who put the stuffed tiger there.

Have 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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