| Benefits & Administration | House Votes to Change ACA Definition of Full-Time Worker | The
U.S. House of Representatives is trying to ease employer mandate requirements
of the Patient Protection and Affordable Care Act’s (ACA). The House has
approved a measure that would change the ACA’s definition of full-time worker.Read more > | | Sponsored message from Vanguard | Vanguard’s Economic & Investment Outlook According to Vanguard’s newly released Economic and Investment Outlook, the U.S. economy will likely remain resilient with anticipated growth above trend in the new term,but it won’t be immune to the recessionary and deflationary risks.Read more > | | Products, Deals & People | A New Tool for Educating and Engaging Participants | Plan sponsors and participants alike report
dissatisfaction with the way the retirement plan industry educates and
communicates, according to Laurie Rowley, president of National Association of
Retirement Plan Participants (NARPP). “Part of the problem with [participant]
engagement centers on the undeniable fact that the materials people are
interacting with are complicated, confusing and disempowering,” she says. Addressing
issues in retirement savings is complex, and can no longer rest in the hands of
service providers alone, she contends. “Change requires collaboration,
innovation, and action. If communications materials are not engaging people,
you have to throw out the old model and come up with something new.”Read more > | Miller & Chevalier, a Washington, D.C., law
firm representing insurance companies, large employers, self-funded employee
benefits plans, and Employee Retirement Income Security Act (ERISA) plan
participants, announced the hire of Erin M. Sweeney to join the firm’s ERISA
& Fiduciary Litigation Practice. Sweeney counsels clients about executive
compensation, health care reform, and employee benefit plan matters.Read more > |
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| Industry Voices | Industry Voice: Time for an Alternative Alternative | Given the performance challenge facing hedge
funds due to efficiency at the micro level, not to mention a fee structure that
few managers can justify, many defined benefit plan sponsors are increasingly
seeking alternatives to hedge funds.Read more > | | Economic Events | Total nonfarm payroll employment rose by
252,000 in December, and the unemployment rate declined to 5.6%, according to
the Bureau of Labor Statistics. Job gains occurred in professional and business
services, construction, food services and drinking places, health care, and
manufacturing.
The U.S. Census Bureau announced that
November sales of merchant wholesalers, except manufacturers’ sales branches
and offices, after adjustment for seasonal variations and trading-day
differences but not for price changes, were $452.2 billion, down 0.3% from the
revised October level, but were up 2.4% from the November 2013 level. The
October preliminary estimate was revised downward $1.0 billion or 0.2%.
November sales of durable goods were up 0.2% from last month and were up 6.3% from
a year ago. Sales of nondurable goods were down 0.8% from October and were down
0.8% from last November.
THE
ECONOMIC WEEK AHEAD: Wednesday,
the Census Bureau will report about retail sales for December and business
inventories for November. Thursday,
the Labor Department will issue its initial claims report, and the Bureau of
Labor Statistics will reveal the producer price index for December. Friday, we’ll learn the consumer price
index for December from the Bureau of Labor Statistics.
| | Market Mirror | Friday, the
Dow fell 170.50 points (0.95%) to 17,737.37, the NASDAQ was down 32.12 points
(0.68%) at 4,704.07, and the S&P 500 closed 17.30 points (0.84%) lower at
2,044.84. The Russell 2000 lost 10.45 points (0.87%) to finish at 1,185.68, and
the Wilshire 5000 decreased 175.27 points (0.81%) to 21,497.12.
On the NYSE,
3.2 billion shares changed hands, with 1.7 declining issues for every advancing
issue. On the NASDAQ, 2.7 billion shares traded, with a near 2 to 1 lead for
decliners.
The price of
the 10-year Treasury note was up 17/32, bringing its yield down to 1.961%. The
price of the 30-year Treasury bond increased 1 12/32, decreasing its yield to
2.538%.
WEEK’S
WORTH: For the week ending January 9, the Dow
decreased 0.54%, the NASDAQ closed 0.65% lower, and the S&P 500 was down
0.48%. The Russell 2000 fell 1.09%, and the Wilshire 5000 lost 0.78%.
| | Compliance | Possible Meaning of Lower DOL Enforcement Results | The dollar amount secured by the Department of
Labor’s (DOL) Employee Benefit Security Administration dropped substantially in
2014 compared with the previous year, despite a higher number of cases closed
and a similar number of violations found. The major year-over-year drop has
left some in the retirement plan compliance industry scratching their heads.Read more > | An Internal Revenue Service announcement
provides for automatic approval of a change in funding method with respect to a
single-employer defined benefit plan under certain circumstances in which the
change in method results from a change in the plan’s enrolled actuary. The current
announcement expands upon the automatic approval conditions under previous
regulations. It lays out four conditions for a plan to have automatic approval
of a change in funding method.Read more > | | From the Magazine | Ideas to Keep Participants from Withdrawing Assets | The goal of a workplace-based retirement plan is
to have plan participants accumulate enough assets for retirement. However,
through loans or hardship withdrawal provisions, money can be taken out of the
plan before participants reach retirement age. Why even offer these provisions?Read more > | | Small Talk | ON THIS DATE: In
1904, Henry Ford set a land-speed
record of 91.37 mph on the frozen surface of Michigan’s Lake St. Clair. In 1915, the U.S. Congress established the
Rocky Mountain National Park. In 1926,
the two-man comedy series “Sam ‘n’ Henry” debuted on Chicago’s WGN
radio station. Later changing its name to “Amos ‘n’ Andy,” the show became
one of the most popular radio programs in American history. In 1932, Ophelia Wyatt Caraway, a Democrat
from Arkansas, became the first woman to be elected to the U.S. Senate. In 1966, “Batman” debuted on
ABC-TV. In 1971, “All In the
Family” debuted on CBS-TV. | SURVEY SAYS: Best and Worst
Holiday Gifts Last week, I asked NewsDash readers, “What is
the best holiday gift you received in 2014, and what is the worst?” I was
pleasantly surprised to see that electronics did not dominate the list of best
gifts this year. As a matter of fact, less than a handful of responding readers
mentioned an electronic item. The theme around this year’s best gifts was
family—time with family, family news, trips, handmade gifts or gifts that
represent family or family memories. Other items on the “best” list included
watches, gift cards, socks, electric blankets, a coffee thermos and a
customized t-shirt, among others. However, some of these “best” gifts were also
listed by some responding readers as “worst” gifts. Many respondents said none
of their gifts were bad, and several listed being sick as their worst gift. In
verbatim comments there was also a theme—that the holidays should be less about
gifts and more about spending time with family and friends. Some offered
suggestions for choosing the right, thoughtful gift. Editor’s Choice goes to the reader who said: “Can we stop between
adults? It’s not fun ’cause it’s tons of work and no one wants to do it! I’d
rather my friends spend time with me, which they never seem to have available!
Let’s go out for a nice dinner & conversation instead!” Thank you to
everyone who participated in our survey!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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2014.
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rights reserved. No reproduction without
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