Plansponsor Logo
PLANSPONSOR NEWSDASH LOGO January 13th, 2020
Insight on Plan Design & Investment Strategy Every Weekday
Administration
What States Are Doing to Offset Lower Assumed Returns
Shifts in investments and changes to employer contributions are being used to mitigate the funded status effects of lower return assumptions.
Data and Research
Initial CalSavers Data Shows an Issue With ‘Stickiness’ of the Program
However, the deadlines for employers to register stretch out to 2022, so the data could improve over time to approach the success reported at the two-year mark by OregonSaves.
Most Read

2020 Defined Benefit Administration Survey
Ask the Experts
Clarification of Loan Repayment Delay Provisions of CARES Act
Compliance
Use of Fidelity Active Management Funds Questioned in Court
Deals & People
Retirement Industry People Moves
Multnomah Group brings in senior consultant; MassMutual adds several relationship managers; Alston & Bird announces partner promotion; and more.
Economic Events
November 2019 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 $500.7 billion, up 1.5% from the revised October level and up 0.8% from the November 2018 level, the Census Bureau reported. The September 2019 to October 2019 percent change was revised from the preliminary estimate of down 0.7% to down 0.9%.

Total nonfarm payroll employment rose by 145,000 in December, and the unemployment rate was unchanged at 3.5%, according to the Bureau of Labor Statistics. Notable job gains occurred in retail trade and health care, while mining lost jobs.

THE ECONOMIC WEEK AHEAD: Tomorrow, the Bureau of Labor Statistics (BLS) will reveal the consumer price index for December. Wednesday, the BLS will reveal the producer price index for December. Thursday, the Labor Department will issue its initial claims report, and the Census Bureau will report about retail sales for December and business trade for November. Friday, the Census Bureau will report about housing starts in December.
Market Mirror
Friday, the Dow fell 133.13 points (0.46%) to 28,823.77, the NASDAQ was down 24.57 points (0.27%) at 9,178.86, and the S&P 500 decreased 9.35 points (0.29%) to 3,265.35. The Russell 2000 lost 7.34 points (0.44%) to finish at 1,657.64, and the Wilshire 5000 closed 96.09 points (0.29%) lower at 33,237.13.

The price of the 10 year Treasury note increased 4/32, bringing its yield down to 1.818%. The price of the 30-year Treasury bond climbed 1 2/32, decreasing its yield to 2.277%.

WEEK’S WORTH: For the week ending January 10, the Dow increased 0.66%, the NASDAQ climbed 1.75%, and the S&P 500 gained 0.94%. The Russell 2000 was down 0.19%, and the Wilshire 5000 finished 0.89% higher.
Compliance
Assumptions for Withdrawal Liability Cannot Be Changed and Applied Retroactively
“The selection of an interest rate assumption after the Measurement Date would create significant opportunity for manipulation and bias” by multiemployer plan trustees, a federal appellate court stated.
Chemical Distributor’s U.S. DC Plan Subject of Excessive Fee Suit
The plaintiffs suggest that the task of evaluating investments has become simpler for plan fiduciaries and that prudent fiduciaries will search for and select the lowest-priced share class available, among other things.
Small Talk
ON THIS DATE: In 1854, Anthony Faas of Philadelphia was granted the first U.S. patent for the accordion. He made improvements to the keyboard and enhanced the sound. In 1928, Ernst F. W. Alexanderson gave the first public demonstration of television. In 1966, Robert C. Weaver became the first black Cabinet member when he was appointed Secretary of Housing and Urban Development by President Lyndon Johnson. In 1968, legendary country singer Johnny Cash played for inmates at California’s Folsom Prison. The concert and the subsequent live album launched him back into the charts and re-defined his career. In 1990, Douglas Wilder of Virginia became the nation’s first African American governor. In 1997, Debbie Reynolds received a star on the Hollywood Walk of Fame. In 1999, Michael Jordan (Chicago Bulls) announced his retirement from the NBA.
SURVEY SAYS RESPONSES: Last week, I asked NewsDash readers, which, if any, financial resolutions they made for 2020. The most common financial resolution selected by responding readers was to spend less (31.2%). One-quarter each selected “save more for retirement” and “give more to charity.” Nearly 19% said one of their financial resolutions is to reduce or get out of debt. Those readers who chose to leave comments revealed other non-financial resolutions they’ve made. One said, “I am always successful with my resolutions. I always resolve to not smoke. I’ve never been a smoker, so it is quite easy! :)” Another reader wished everyone good luck with their resolutions. Editor’s Choice goes to the reader who said: “None of the above are New Year’s resolutions for me. They’re just things I know I need to tackle if retirement is going to be as enjoyable as I hope it will be.” A big thank you to everyone who participated in our survey!
Did someone forward you this newsletter? Sign up here to get NEWSDash directly in
your mailbox!
rss icon twitter icon linkedin-in icon facebook icon
ISS MEDIA logo
Unsubscribe | Manage Subscriptions | Contact Us | Privacy Policy | Advertise
©2020 Asset International Inc. All rights reserved.
702 King Farm Boulevard, Suite 400, Rockville, MD 20850