Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
January 10th, 2019
From the Magazine
What Does The Plan Say?
A frequently overlooked fiduciary duty is that of acting in accordance with plan documents to the extent consistent with the Employee Retirement Income Security Act (ERISA). While it may not be light reading, committee members should be familiar with the terms of those documents governing the plan, including the plan document. Even though the committee may delegate daily plan administration, knowing the plan’s provisions is still relevant for retained responsibilities, as well as for monitoring the people delegated those administrative responsibilities. Summer Conley and Michael Rosenbaum, with Drinker Biddle & Reath, say often clients call to ask them a question regarding how a benefit should be calculated or who should receive a benefit, etc. Their first response is always, “What does the plan say?” Read more >
Compliance
Judge Rules to Dismiss Georgetown University 403(b) ERISA Lawsuit
The colorfully worded opinion chides plaintiffs for failing to acknowledge the unique character of 403(b) retirement plans—including their common use of annuities and multiple recordkeepers. Read more >
MOST READ ARTICLES
1
IRS Announces 2019 HSA Contribution Limits
2
2019 ERISA Plan Compliance Calendar
3
Sponsors and Providers Use Too Much DC Plan Jargon
4
Effective Retirement Plan Communications Are Understandable and Accessible
5
Employees Report a Wide Range of Benefits Contribute to Financial Security
Sponsored message from FRA Events
Taft-Hartley Benefits Summit 2019
How to Control Costs Before They Occur – Negotiations Throughout the Billing Cycle Read more >
Market Mirror

Wednesday, the Dow gained 91.67 points (0.39%) to finish at 23,879.12, the NASDAQ closed 60.08 points (0.87%) higher at 6,957.08, and the S&P 500 increased 10.55 points (0.41%) to 2,584.96. The Russell 2000 was up 12.25 points (0.86%) at 1,438.81, and the Wilshire 5000 climbed 127.57 points (0.48%) to 26,741.36.

 

The price of the 10-year Treasury note was up 3/32, decreasing its yield to 2.721%. The price of the 30-year Treasury bond increased 2/32, bringing its yield down to 3.006%.

Benefits & Administration
Study Supports DB Plans Over DC Plans for Teachers
The study, which evaluated pensions against hypothetical 401(k) plans, finds 77% of teachers in six states will work long enough in the same retirement system to earn benefits of greater value and security from the lowest-tier pension, compared to an idealized 401(k) with low fees and no investment mistakes. Read more >
2018 Pension Funded Status Gains Erased in December
Consultants say market losses for U.S. pension plans in December were the worst in a decade. Read more >
Sponsored message from Wells Fargo
Personalized Investments
A New Approach to Customizing the Retirement Journey Read more >
Investing
As Volatility Returned, Endowment Index Lost Ground in 2018
The Endowment Index represents a benchmark for analyzing the investable opportunity of managers of portfolios utilizing the “Endowment Investment Philosophy” or who “otherwise incorporate alternative investments within a comprehensive asset allocation.” Read more >
Small Talk

ON THIS DATE: In 1861, Florida seceded from the United States. In 1870, John D. Rockefeller incorporated Standard Oil. In 1901, oil was discovered at the Spindletop oil field near Beaumont, Texas. In 1920, the League of Nations ratified the Treaty of Versailles, officially ending World War I with Germany. In 1920, the League of Nations held its first meeting in Geneva. In 1946, the first meeting of the United Nations General Assembly took place with 51 nations represented. In 1984, the United States and the Vatican established full diplomatic relations for the first time in more than a century. In 1990, Time Inc. and Warner Communications Inc. completed a $14 billion merger. The new company, Time Warner, was the world’s largest entertainment company. In 2000, it was announced that Time-Warner had agreed to buy America On-line (AOL). It was the largest-ever corporate merger priced at $162 billion. In 2000, it was announced that Time-Warner had agreed to buy America On-line (AOL). It was the largest-ever corporate merger priced at $162 billion. In 2001, American Airlines agreed to acquire most of Trans World Airlines (TWA) assets for about $500 million. The deal brought an end to the financially troubled TWA.

SURVEY SAYS: This week, please share with us whether your firm formally educates plan committee members, whether this education includes fiduciary training, and how often education is provided. Answers may be included in a future issue of PLANSPONSOR magazine. You may respond to this week’s survey by 6 p.m. Pacific time today. Read more >
Share the news with a friend! Pass the NewsDash along and tell your friends/associates they can sign up for their own copy. Read more >

Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

Advertising: Paul Zampitella paul.zampitella@strategic-i.com

Subscribe to NEWSDash, click here .

To unsubscribe, click here.

BrightScope / CIO / FWW / Investor Economics / LiquidMetrix / Market Metrics / Matrix Solutions / PLANADVISER / Plan For Life / PLANSPONSOR / Simfund