Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
January 12th, 2018
Benefits & Administration
SOA Measures Mortality ‘Anomaly’ in 2016
The slight decrease in overall mortality during 2016 measured by the Society of Actuaries may seem to run counter to the Center for Disease Control’s (CDC)’s report that life expectancy at birth declined 0.1 years, however both stats are in fact true. Read more >
Compliance
Avoid Inadvertently Defaulting Participant Plan Loans Post Tax Cuts
Drinker Biddle staffers Christine Kong, partner; Karen Gelula, counsel; and Monica Novak, associate, have published a new client alert analysis, offering some important observations about a few of the more obscure changes included in the Tax Cuts and Jobs Acts anticipated to impact employers and their retirement plans. The attorneys warn that many of the elements discussed here generally apply to plan years beginning after December 31, 2017. Following the GOP tax cuts, plan sponsors may wish to coordinate administration of their loan offset rollover rules with their third-party administrator (TPA) in order to avoid inadvertently defaulting participants’ plan loans. Read more >
Products, Deals and People
Investment Products and Services Launches
Invesco launches Peak Retirement Target-Date Fund Series, and Efficient Advisors launches mutual fund partnership with Dimensional. Read more >
MOST READ ARTICLES
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IRS Announces 2019 HSA Contribution Limits
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ERISA Self-Dealing Lawsuit Calls SEI Plan ‘Captive Customer’
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2018 Managed Account Buyer’s Guide
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Deloitte Makes Suggestions for Addressing Loan Leakage From Retirement Accounts
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Social Security Benefits to Increase in 2019
Financial Soundings Solution Supports In-Plan Retirement
The enhanced retiree offering from Financial Soundings seeks to help retired participants take advantage of the group pricing and the fiduciary oversight delivered by qualified retirement plans—by helping participants craft a strategy to spend down assets without leaving the plan. Read more >
Economic Events

The Producer Price Index for final demand fell 0.1% in December, as prices for final demand services decreased 0.2% and the index for final demand goods was unchanged, the Bureau of Labor Statistics reported. The final demand index climbed 2.6% in 2017.

In the week ending January 6, the advance figure for seasonally adjusted initial claims for unemployment insurance was 261,000, an increase of 11,000 from the previous week’s unrevised level of 250,000, the Labor Department announced. The four-week moving average was 250,750, an increase of 9,000 from the previous week’s unrevised average of 241,750.

The average interest rate for a 30-year fixed-rate mortgage is 3.99%, up from 3.95% one week ago, according to Freddie Mac. The average interest rate for a 15-year fixed-rate mortgage is 3.44%, up from 3.38%.

Market Mirror

Thursday, the Dow closed 205.60 points (0.81%) higher at 25,574.73, the NASDAQ increased 58.21 points (0.81%) to 7,211.78, and the S&P 500 was up 19.33 points (0.70%) at 2,767.56. The Russell 2000 climbed 26.99 points (1.73%) to 1,586.79, and the Wilshire 5000 gained 242.02 points (0.85%) to finish at 28,749.10.

The price of the 10-year Treasury note was up 6/32, decreasing its yield to 2.536%. The price of the 30-year Treasury bond increased 23/32, bringing its yield down to 2.865%.

From the Magazine
Breaking Up With a Fund
“They say that breaking up is hard to do,” declares Neil Sedaka’s 1962 classic pop song. And not just for teen romances, either: Having to remove a carefully chosen fund manager whose decisions have failed to deliver, and then settling on a capable replacement, is one of the most difficult tasks defined contribution (DC) plan sponsors may undertake. Read more >
Small Talk

ON THIS DATE: In 1773, the first public museum in America was established in Charleston, South Carolina. In 1896, at Davidson College, several students took x-ray photographs. They created the first X-ray photographs to be made in America. In 1904, Henry Ford set a new land speed record when he reached 91.37 miles per hour. In 1908, a wireless message was sent long-distance for the first time from the Eiffel Tower in Paris. In 1915, the U.S. House of Representatives rejected a proposal to give women the right to vote. In 1915, the U.S. Congress established the Rocky Mountain National Park. In 1932, Hattie W. Caraway became the first woman elected to the U.S. Senate. In 1948, the U.S. Supreme Court ruled that states could not discriminate against law-school applicants because of race. In 1955, Rod Serling’s career began with the TV production of “Patterns.” In 1966, U.S. President Lyndon Johnson said in his State of the Union address that the United States should stay in South Vietnam until Communist aggression there was ended. In 1966, “Batman” debuted on ABC-TV. In 1971, “All In the Family” debuted on CBS-TV. In 1991, the U.S. Congress passed a resolution authorizing President George Bush to use military power to force Iraq out of Kuwait. In 1998, 19 European nations agreed to prohibit human cloning.

And now it’s time for FRIDAY FILES!

This little boy is frustrated that his cup magic trick isn’t more difficult to figure out. Read more >
In Norfolk, England, a BBC News reporter found it’s not so easy to report about lemurs. Read more >
In Cornwall, U.K., a family was surprised by a sudden change in their pet rabbit’s appearance before Christmas. A cross suddenly appeared on the rabbit’s forehead. [pic] Read more >

In Rocky River, Ohio, residents on a number of streets have had to pick up their mail at the post office for weeks due to unsafe conditions for mail carriers. Cleveland.com reports carriers say a rafter of aggressive wild turkeys have prevented them from delivering mail to more than two dozen homes. The city has sent letters to people asking them to stop putting out bird feed in the hope the turkeys will go elsewhere.

 

In Minot, North Dakota, a man who wheeled a shopping cart with stolen merchandise out of a Hobby Lobby craft store was thwarted by snow. According to the Associated Press, police say the man filled up a cart with about $4,000 in products, but the cart got stuck in the snow in the parking lot and tipped over, prompting the man to run off. However, police say that along with the merchandise, the man left behind his wallet—which contained identification with his address.

 

In Randolph, Massachusetts, a couple hit the jackpot—twice. The husband recently won a $1 million jackpot on a $5 lottery scratch-off ticket. According to a press release from the Massachusetts State Lottery, this is a little over four months after his wife won a $1 million Publishers Clearing House prize. The couple plan to use their winnings to purchase a home in an older-than-55 community in order to avoid shoveling snow, they said.

 

In Apatity, Russia, a man was apparently desperate to imbibe. He stole a vehicle from a privately-run motorsport training ground, drove to a convenience store and crashed the vehicle into the store. Local news agency Hibinform says footage on social media shows him exiting the vehicle through the hatch and entering the store through the broken window. He was later arrested for possession of a stolen bottle of wine. The store was not licensed to sell alc.ohol that early in the morning, according to the agency.

 

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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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