Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
January 18th, 2017
Compliance
Provider Communication Rules Scrutinized in DOL Fiduciary FAQ
The DOL released another “Fiduciary Rule FAQs” document. Questions covered in the second FAQ document range from the general to the specific. For example, on the high-level question, “Is every communication with a financial adviser about retirement accounts a fiduciary recommendation?,” DOL answers simply, “No.” Read more >
IRS Proposes Changes to QMAC, QNEC Definitions
Under the proposal, employer contributions to a plan would be able to qualify as qualified matching contributions (QMACs) and qualified nonelective contributions (QNECs) if they satisfy applicable nonforfeitability and distribution requirements at the time they are allocated to participants’ accounts not when they are contributed to the plan. Read more >
MOST READ ARTICLES
1
SECURE Act Passes House, Bringing Calls for Senate Collaboration
2
J.P. Morgan Agrees to Settle Stable Value Funds Suit
3
Individuals, Employers and Government All Play a Part in Retirement Readiness
4
Participant Loans: A Fiduciary Storm Brewing?
5
What to Know About Financial Audits Filed with Form 5500s
IRS Announces Last Day of Remedial Amendment Period for 403(b)s
Internal Revenue Service (IRS) Revenue Procedure 2017-18 provides that the last day of the remedial amendment period for 403(b) plans is March 31, 2020. In April 2013, the agency issued Revenue Procedure 2013-22 establishing a pre-approved plan program for 403(b)s and offered a remedial amendment period for 403(b) plan documents. Read more >
PBGC Lists Triggers for Early Warning Program
An important aspect of the pension preservation mission of the Pension Benefit Guaranty Corporation (PBGC) is its Early Warning Program (EWP) for single-employer defined benefit (DB) plans. In an updated page on its website, PBGC says its experience under the EWP is that it can avoid terminating a plan by working with the plan sponsor to obtain protections before a business transaction significantly increases the risk of loss. PBGC regularly monitors corporate transactions, events, or trends that could affect a plan sponsor’s ability to continue to support its DB plan. Read more >
Market Mirror

Tuesday, the Dow closed 58.96 points (0.30%) lower at 19,826.77, the NASDAQ decreased 35.39 points (0.63%) to 5,538.73, and the S&P 500 was down 6.75 points (0.305) at 2,267.89. The Russell 2000 fell 14.96 points (1.09%) to 1,352.32, and the Wilshire 5000 lost 96.64 points (0.41%) to finish at 23,711.34.

On the NYSE, 3.1 billion shares traded, with a slight lead for declining issues. On the NASDAQ, 2.9 billion shares changed hands, with a more than 2 to 1 lead for decliners.

The price of the 10-year Treasury note increased 19/32, bringing its yield down to 2.328%. The price of the 30-year Treasury bond climbed 1 5/32, decreasing its yield to 2.932%.

Benefits & Administration
Pay Gap Means Women Need to Save More for Retirement
The average American woman must save $1.25 for every $1 a man invests in retirement savings to build an equivalent nest egg, a NerdWallet data analysis shows. For every dollar men earn, women in the U.S. make 80 cents on average, according to the latest available data. That wage gap can lead to an even bigger divide down the road when it comes to retirement savings in a 401(k), NerdWallet says. The company looked at U.S. Census Bureau data from 2007 and 2015. Read more >
Small Talk
In today’s multigenerational workforce, most executives agree that each age demographic exhibits its own styles and approaches. CFOs in a Robert Half Management Resources survey said they see the greatest generational differences in employees’ communication skills (30%), ability to adapt to change (26%) and technical abilities (23%). Read more >

ON THIS DATE: In 1778, English navigator Captain James Cook discovered the Hawaiian Islands, which he called the “Sandwich Islands.” In 1803, Thomas Jefferson, in secret communication with Congress, sought authorization for the first official exploration by the U.S. government. In 1896, the X-ray machine was exhibited for the first time. In 1911, for the first time an aircraft landed on a ship. Pilot Eugene B. Ely flew onto the deck of the USS Pennsylvania in San Francisco harbor. In 1919, the World War I Peace Congress opened in Versailles, France. In 1943, during World War II, the Soviets announced that they had broken the Nazi siege of Leningrad, which had begun in September of 1941. In 1957, the first, non-stop, around-the-world, jet flight came to an end at Riverside, CA. The plane was refueled in mid-flight by huge aerial tankers. In 1958, Willie O’Ree made his NHL debut with the Boston Bruins. He was the first black player to enter the league. In 1964, the plans for the original World Trade Center in New York were unveiled to the public. In 1975, “The Jeffersons” debuted on CBS-TV. In 1985, Mary Decker broke a world, indoor record when she ran the women’s, 2,000-meter race in 5:34.2. She also ran the outdoor mile in 4:16.7. In 1991, Eastern Airlines shut down after 62 years in business, due to financial problems. In 1993, the Martin Luther King Jr. holiday was observed in all 50 U.S. states for the first time. In 1995, the “yahoo.com” domain was created.

 

WEDNESDAY WISDOM: “Begin to be now what you will be hereafter.”—William James, American philosopher and psychologist

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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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