Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
January 11th, 2019
Benefits & Administration
Study Quantifies How Much DB Plans Benefit the Economy
According to a report from the National Institute of Retirement Security, “Retirees with DB pensions know they are receiving a steady check despite economic conditions. In contrast, retirees may be reluctant to spend out of their 401(k)-type accounts if their savings are negatively impacted by market downturns.” Expenditures made out of pension benefits collectively supported 7.5 million American jobs that paid nearly $386.7 billion in labor income; $1.2 trillion in total economic output nationwide; $685.0 billion in value added (GDP); and $202.6 billion in federal, state, and local tax revenue. Read more >
Small Business Employees Sorely Need Retirement Plan Coverage
LIMRA data shows nearly four in 10 workers say they began to save for retirement because their employer offered a retirement savings plan. Read more >
Compliance
Lawmaker Introduces Legislation to Address Multiemployer Pensions Crisis
The bill would establish a Pension Rehabilitation Administration (PRA)—an entirely new agency within the Department of the Treasury authorized to issue bonds in order to finance loans to certain multiemployer pension plans. Read more >
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HSA Savings for Seniors Who Want to Work Longer
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Communicating Retirement Benefits to Five Generations of Workers
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Congress Urged to Act Soon on Union Pension Funding Crisis
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2019 PLANSPONSOR National Conference
Economic Events

In the week ending January 5, the advance figure for seasonally adjusted initial claims for unemployment insurance was 216,000, a decrease of 17,000 from the previous week’s revised level of 233,000, the Labor Department reported. The four-week moving average was 221,750, an increase of 2,500 from the previous week’s revised average of 219,250.

The average interest rate for a 30-year fixed-rate mortgage is 4.45%, down from 4.51% one week ago, according to Freddie Mac. The average interest rate for a 15-year fixed-rate mortgage is 3.89%, down from 3.99%.

Market Mirror

Thursday, the Dow climbed 122.80 points (0.51%) to 24,001.92, the NASDAQ closed 28.99 points (0.42%) higher at 6,986.07, and the S&P 500 increased 11.67 points (0.45%) to 2,596.63. The Russell 2000 was up 6.63 points (0.46%) at 1,445.43, and the Wilshire 5000 gained 112.33 points (0.42%) to finish at 26,853.74.

The price of the 10-year Treasury note was down 8/32, increasing its yield to 2.738%. The price of the 30-year Treasury bond decreased 30/32, bringing its yield up to 3.051%.

Products, Deals and People
Plan Strategies Enhances Website to Offer Educational Resource
The firm says employers and employees will find a wealth of information about fiduciary liability and saving for retirement on its new blog. Read more >
Investment Product and Service Launches
Natixis releases international sustainable equity fund; Putnam to host webcasts on fixed income markets; Fitch Ratings launches ESG Scoring System. Read more >
Small Talk

ON THIS DATE: In 1805, the Michigan Territory was created. In 1861, Alabama seceded from the United States. In 1913, the first sedan-type car was unveiled at the National Automobile Show in New York City. The car was manufactured by the Hudson Motor Company. In 1922, at Toronto General Hospital, Leonard Thompson became the first person to be successfully treated with insulin. In 1935, Amelia Earhart Putnam became the first woman to fly solo from Hawaii to California. In 1938, in Limerick, Maine, Frances Moulton assumed her duties as the first woman bank president. In 1964, U.S. Surgeon General Luther Terry released a report that said that smoking cigarettes was a definite health hazard. In 1980, Nigel Short, age 14, from Bolton in Britain, became the youngest International Master in the history of chess.

 

And now it’s time for FRIDAY FILES!

The last thing he said before cutting down a tree was, “Hold my beer.” Read more >
Stealing a bicycle is wrong, but trying to steal one right in front of the police station is just sooo wrong. Read more >
In Salinas, California, a resident’s security system alerted her to strange movement outside her house early one morning. Looking at her security camera, she saw a trespasser licking her doorbell—which he did for three hours. The woman told local station KION-TV that her family spent the rest of that weekend sanitizing the doorbell. Read more >

In Anchorage, Alaska, a moose moseyed into a hospital recently; the doors were stuck open due to the extreme cold. According to the Associated Press, a hospital spokeswoman said the plant greenery in the warm lobby was likely inviting to the animal, who ended up eating some of the plants before leaving the building after about 10 minutes inside.

In Dearborn, Michigan, a woman was shocked when she picked up a telephone call and was told that a pet hospital in Tampa, Florida had her cat, which had been missing for two months. It’s unclear how the cat made the cross-country trek, but the woman guesses he hitched a ride on a moving vehicle or was found by someone in Michigan on their way to Florida, the Detroit Free Press reported.

In Berwick, Pennsylvania, the lawyer for a woman charged with driving while under the influence had an interesting argument. The (Bloomsburg) Press Enterprise reports that an officer who pulled the woman over testified she was nibbling on her coat before he gave her a breath test and that he ordered her to stop. Her BAC was 0.151. The woman’s lawyer asked the officer if he knew the chemical composition of the coat, noting that certain substances can alter the results of the test. However, the judge ruled there was enough evidence to go to trial because the officer also said the woman melled of alcohol and failed a field sobriety test.

 

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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