January 15th, 2020 Insight on Plan Design & Investment Strategy Every Weekday Compliance Court Ends Dispute of Proper Remedy in Amara v. Cigna A federal district court has refused to reconsider its ruling that Cigna is carrying out its orders correctly in the cash balance conversion case. Compliance Supreme Court Will Not Weigh In on Burden of Proof and Index Fund Comparison The denial will let a 1st U.S. Circuit Court of Appeals decision stand, which the Investment Company Institute previously said will increase ERISA litigation, distort retirement plan fiduciary decisionmaking and ultimately harm plan participants. Most Read Compliance DOL Offers Guidance for Locating Missing Participants 2020 Recordkeeping Survey Administration The Mechanics of Moving to a PEP Compliance Northrop Grumman Agrees to Settle 401(k) Excessive Fee Suit The defendants have agreed to pay a gross settlement amount of $12,375,000 to resolve all claims. Economic Events In December, the Consumer Price Index for All Urban Consumers (CPI-U) rose 0.2% on a seasonally adjusted (SA) basis; rising 2.3% over the last 12 months, not seasonally adjusted (NSA), according to the Bureau of Labor Statistics. The index for all items less food and energy rose 0.1% in December, SA; up 2.3% over the year, NSA. Real average hourly earnings decreased 0.1% over the month in December, SA. Average hourly earnings increased 0.1% and CPI-U increased 0.2%. Real average weekly earnings decreased 0.1% over the month. Market Mirror Tuesday, the Dow was up 32.62 points (0.11%) at 28,939.67, the NASDAQ closed 22.60 points (0.24%) lower at 9,251.33, and the S&P 500 decreased 4.98 points (0.15%) to 3,283.15. The Russell 2000 increased 6.14 points (0.37%) to 1,675.74, and the Wilshire 5000 was down 17.18 points (0.05%) at 33,469.91. The price of the 10-year Treasury note was up 3/32, decreasing its yield to 1.815%. The price of the 30-year Treasury bond increased 28/32, bringing its yield down to 2.276%. Ask the Experts Is Treatment of Roth Excess Deferrals the Same as That for Pre-Tax? “Are refunds of an excess Roth 403(b) deferral handled the same way as an excess deferral to a traditional pre-tax 403(b)? If not, what are the differences?” Compliance First Facilitated Merger of Multiemployer Plans Approved by PBGC Under the Multiemployer Pension Reform Act, if one or more of the plans in the merger is in critical and declining status and appears to become insolvent within 20 years, the agency can provide financial assistance for the merged plan(s) to remain solvent. Supreme Court Remands IBM v. Jander Stock Drop Challenge The Supreme Court has issued a limited ruling in a case that could have had a big impact on the filing and resolution of so-called “stock drop” lawsuits. Investing Portfolios Face Rate Cuts, Trade Tensions and Elections The combination of moderate growth and technological innovation will continue to suppress inflation, which in turn will bolster the global central bank easing cycle that is already well underway. Small Talk In two surveys, American workers say talking politics at work is more common, and 42% of respondents in one survey say they have experienced political disagreements in the workplace. ON THIS DATE: In 1777, the people of New Connecticut (now the state of Vermont) declared their independence. In 1844, the University of Notre Dame received its charter from the state of Indiana. In 1870, a cartoon by Thomas Nast which appeared in “Harper’s Weekly” used a donkey to symbolize the Democratic Party for the first time. In 1908, Alpha Kappa Alpha Sorority became America’s first Greek-letter organization established by African-American college women. In 1936, the first, all glass, windowless building was completed in Toledo, Ohio. The building was the new home of the Owens-Illinois Glass Company Laboratory. In 1943, in Arlington, Virginia, the Pentagon was dedicated as the world’s largest office building. The structure covers 34 acres of land and has 17 miles of corridors. In 1967, the first National Football League Super Bowl was played. The Green Bay Packers defeated the Kansas City Chiefs 35-10. In 1973, President Richard Nixon announced the suspension of all U.S. offensive action in North Vietnam. He cited progress in peace negotiations as the reason. In 1974, “Happy Days” premiered on ABC-TV. In 1986, President Ronald Reagan signed legislation making Martin Luther King, Jr.’s birthday a national holiday to be celebrated on the third Monday of January. In 2001, Wikipedia was launched. WEDNESDAY WISDOM: “What would be left of our tragedies if an insect were to present us his?”—Emil Cioran, Romanian philosopher and essayist Did someone forward you this newsletter? Sign up here to get NEWSDash directly in your mailbox!

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