Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
January 22nd, 2019

2018 Defined Contribution Survey

The quest for the best defined contribution (DC) recordkeeper leads down a path well-traveled by sponsors and their advisers or consultants. Each year, DC plans of all sizes collectively issue thousands of requests for proposals (RFPs) or requests for information (RFIs) in hopes of learning how plan servicing might be improved. But it can be hard to identify clear areas of differentiation among the leading providers of recordkeeping services. Read more >
Benefits & Administration
DC Plan Sponsors Still Shunning Annuities
The top reason cited for not offering an annuity-type product in defined contribution (DC) plans is being uncomfortable or unclear about the fiduciary implications. Read more >
DC Plan Sponsors Increasing Focus on Fees
Callan’s 2019 Defined Contribution (DC) Trends Survey finds more plan sponsors have conducted fee benchmarking, there’s a shift in who is paying fees and trends regarding revenue sharing have changed. Read more >
Industry Voices
Prudence and Procedure in the Context of Protecting Against ERISA Class Actions
Retirement plan fiduciaries’ decisions are based on a process, and prudence should be baked into and visibly evident in the process. Read more >
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Sponsored message from Vanguard
Vanguard TDFs-Well-designed in any weather
A look at how Vanguard(r) Target Retirement Funds are designed to help investors endure both good markets and bad. Read more >
Economic Events

THE ECONOMIC WEEK AHEAD: Today, the National Association of Realtors will report about existing home sales for December. Thursday, the Labor Department will issue its initial claims report, and Friday, the Census Bureau will report about durable goods orders and new home sales for December. Note: Some items may be delayed by the government shutdown.

Market Mirror

Friday, the Dow gained 336.25 points (1.38%) to finish at 24,706.35, the NASDAQ closed 72.77 points (1.03%) higher at 7,157.23, and the S&P 500 increased 34.75 points (1.32%) to 2,670.71. The Russell 2000 was up 15.25 points (1.04%) at 1,482.50, and the Wilshire 5000 climbed 350.77 points (1.29%) to 27,617.22.

 

The price of the 10-year Treasury note was down 10/32, increasing its yield to 2.787%. The price of the 30-year Treasury bond decreased 15/32, bringing its yield up to 3.099%.

 

WEEK’S WORTH: For the week ending January 18, the Dow climbed 2.96%, the NASDAQ increased 2.66%, and the S&P 500 gained 2.87%. The Russell 2000 was up 2.43%, and the Wilshire 5000 finished 2.84% higher.

Compliance
Nondiscrimination Testing Part I: Required Testing and Due Dates
Sponsors of all retirement plan types need to know what nondiscrimination testing is required for their plan and what information needs to be gathered to correctly perform these tests. Read more >
Products, Deals and People
Retirement Industry People Moves
Ascensus and State Farm conclude pension and IRA transfer; Drinker Biddle welcomes employee benefits partner; Cafaro Greenleaf hires head of Boston office; and more. Read more >
Franklin Templeton and Principal Each Make HSAs a Priority
Franklin Templeton is rolling out R6 shares for health savings accounts, while Principal has announced its first collaboration with an HSA provider. Read more >
Small Talk

ON THIS DATE: In 1874, a patent was issued to Samuel W. Francis for the spork. In 1879, James Shields began a term as a U.S. Senator from Missouri. He had previously served Illinois and Minnesota. He was the first Senator to serve three states. In 1889, the Columbia Phonograph Company was formed in Washington, D.C. In 1895, the National Association of Manufacturers was organized in Cincinnati, Ohio. In 1903, the Hay-Herrán Treaty was signed by United States Secretary of State John M. Hay and Colombian Chargé Dr. Tomás Herrán. The treaty granted the United States rights to the land proposed for the Panama Canal. In 1930, in New York City, excavation began for the Empire State Building. In 1947, KTLA, Channel 5, in Hollywood, California, began operation as the first commercial television station west of the Mississippi River. In 1950, Alger Hiss, a former adviser to U.S. President Franklin Roosevelt, was convicted of perjury for denying contacts with a Soviet agent. He was sentenced to five years in prison. In 1961, Wilma Rudolph, set a world indoor record in the women’s 60-yard dash. She ran the race in 6.9 seconds. In 1968, “Rowan & Martin’s Laugh-In”, debuted on NBC TV. In 1970, the first regularly scheduled commercial flight of the Boeing 747 began in New York City and ended in London about 6 1/2 hours later. In 1973, the U.S. Supreme Court struck down state laws that had been restricting abortions during the first six months of pregnancy. The case (Roe v. Wade) legalized abortion. In 1983, Bjorn Borg retired from tennis. He had set a record by winning 5 consecutive Wimbledon championships. In 1984, Apple introduced the Macintosh during the third quarter of Super Bowl XVIII. In 1997, the Senate confirmed Madeleine Albright as the first female secretary of state. In 1998, Theodore Kaczynski pled guilty to federal charges for his role as the Unabomber. He agreed to life in prison without parole. In 2002, AOL Time Warner filed suit against Microsoft in federal court seeking damages for harm done to AOL’s Netscape Internet Browser when Microsoft began giving away its competing browser. In 2002, Kmart Corp. filed for Chapter 11 bankruptcy making it the largest retailer in history to seek legal protection from its creditors.

SURVEY SAYS RESPONSES: Last week, I asked NewsDash readers which two contenders they would like to see in the Super Bowl and which team they would like to win the Super Bowl. As for the NFC Championship, the majority (56.1%) of responding readers indicated they would like to see the New Orleans Saints win, while 26.5% would like to see the Los Angeles Rams win. For the AFC Championship, three-quarters (75.5%) are pulling for the Kansas City Chiefs, while only 18.4% said they would like to see the Patriots win. Twenty-eight percent of respondents indicated they want to see the Chiefs win the Super Bowl. This was only beat out by the 30.2% of respondents who said they want any team but the Patriots to win. The Saints and the Patriots each received 13.5% of reader votes, while 10.4% want the Rams to win. Among readers who chose to share verbatim comments, many expressed either distaste for or boredom of the New England Patriots and/or Tom Brady. A number of respondents just want to see a good game. And, of course, there were those who said they would only watch for the commercials and/or half-time show. Editor’s Choice goes to the reader who said: “Looking forward to high scoring game that is exciting and close until the last minute. Very smart to play the game on a Sunday and start when it does (as opposed to championship in almost all other sports- hear that MLB) so everyone can stay up until end.” Thanks to all who participated in the survey! Read more >
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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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