Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
January 30th, 2017
Benefits & Administration
First Mutltiemployer Plan to Make Benefit Cuts Under MPRA
Members of the Cleveland Iron Workers Local 17 Pension Fund voted by a 2 to 1 margin to approve the cuts, following the Treasury Department’s approval in December. Read more >
DC Plans Making Fee-Focused Changes
Callan’s 10th-annual “Defined Contribution Trends Survey” reveals that fees are playing a heightened role in driving plan sponsor decision-making. Reviewing plan fees was cited as a key area of fiduciary focus, both now and for the foreseeable future. Also related to this focus on fees are trends including an increase in recordkeeper search activity, movement to institutional fund structures, de-emphasizing revenue sharing, and adoption of fee policy statements. Read more >
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Employers Encouraged to Offer Multi-Dimensional Wellness Programs
Products, Deals and People
Retirement Industry People Moves
Paychex adds LPL Financial’s Employee Advice Solution; Custodia Financial adds staff to Retirement Loan Eraser Program; Fiduciary Investment Advisors expands Retirement Practice; and more. Read more >
Economic Events

New orders for manufactured durable goods in December decreased $1.0 billion or 0.4% to $227.0 billion, the U.S. Census Bureau announced. This decrease, down two consecutive months, followed a 4.8% November decrease. Excluding transportation, new orders increased 0.5%. Excluding defense, new orders increased 1.7%. Transportation equipment, also down two consecutive months, drove the decrease, $1.7 billion or 2.2% to $73.7 billion.

THE ECONOMIC WEEK AHEAD: Tomorrow, the Conference Board will release its Consumer Confidence Index for January. Wednesday, the Census Bureau will report about construction spending in December. Thursday, the Labor Department will issue its initial claims report. Friday, the Bureau of Labor Statistics will reveal the unemployment rate for January, and the Census Bureau will report about factory orders for December.

Sponsored message from PNC Retirement Solutions
PNC Retirement Solutions Embraces Fiduciary Role
Peter Ferrise, Director of Investments for PNC Retirement Solutions, discusses how the Department of Labor’s final fiduciary rule may push more defined contribution plan sponsors to consider 3(21) advisory or 3(38) investment management services. Read more >
Market Mirror

Friday, the Dow was down 7.13 points (0.04%) at 20,093.78, the NASDAQ, was up 5.61 points (0.10%) at 5,660.78, and the S&P 500 decreased by 1.99 (0.095) to 2.294.69. The Russell 2000 decreased 4.84 points (0.35%) to 1,370.75, and the Wilshire 5000 closed 43.45 points (0.18%) lower at 24,009.09.

On the NYSE, 3.1 billion shares changed hands, with 1.3 declining issues for every advancing issue. On the NASDAQ, 2.9 billion shares traded, with a slight lead for decliners.

The price of the 10-year Treasury note was up 6/32, decreasing its yield to 2.483%. The price of the 30-year Treasury bond increased 15/32, bringing its yield down to 3.062%.

WEEK’S WORTH: For the week ending January 27, the Dow finished 1.34% higher, the NASDAQ climbed 1.90%, and the S&P 500 was up 1.03%. The Russell 2000 gained 1.40%, and the Wilshire 5000 increased 1.12%.

Compliance
DOL Fiduciary Reform Effort Losing Steam
The Department of Labor’s (DOL) fiduciary rule reform effort, more than a decade in the making, seems more likely than ever to finally stall, according to a variety of industry experts called upon to interpret the likely impact of a Trump Administration and the Republican-controlled Congress on the employer-sponsored retirement planning market. Asked what comes next for the DOL rulemaking, which was technically finalized under the Obama Administration but does not begin to take effect until April 2017, Brad Campbell, Washington-based counsel with Drinker Biddle and Reath, says it’s most likely the rulemaking will be overturned by the new Labor Department leadership. Read more >
Investing
Advisers to Push for More ETF Use in DC Plans
With consumers every day becoming more fee conscious and mounting pressure from regulators and litigators, Cerulli finds that advisers “believe that lower-cost investment products translate to less business risk.” Read more >
Small Talk

ON THIS DATE: In 1844, Richard Theodore Greener became the first African American to graduate from Harvard University. In 1847, the town of Yerba Buena was renamed San Francisco. In 1862, the U.S. Navy’s first ironclad warship, the Monitor, was launched. In 1933, “The Lone Ranger” was heard on radio for the first time. The program ran for 2,956 episodes and ended in 1955. In 1933, Adolf Hitler was named the German Chancellor. In 1948, Indian political and spiritual leader Mahatma Gandhi was murd.ered by a Hindu extremist. In 1958, the first two-way moving sidewalk was put in service at Love Field in Dallas. The length of the walkway through the airport was 1,435 feet. In 1995, the U.N. Security Council authorized the deployment of a 6,000-member U.N. peace-keeping contingent to assume security responsibilities in Haiti from U.S. forces. In 1995, researchers from the U.S. National Institutes of Health announced that clinical trials had demonstrated the effectiveness of the first preventative treatment for sickle cell anaemia.

SURVEY SAYS RESPONSES: Last week, I asked NewsDash reader, “Are you a fan of the Atlanta Falcons or are you pulling for the New England Patriots to win Super Bowl LI (51)?” The majority of responding readers (61.6%) are rooting for the Falcons to win the Super Bowl, while nearly one-quarter (24.4%) chose the Patriots. Nearly 6% said they don’t care, 3.5% chose “either” and 4.6% indicated they don’t watch football. In the comments left by readers, there was much distaste for the Patriots and Tom Brady, but also some kudos for them. As usual, some commented about looking forward to the commercials, although one reader expressed distaste for them as well. Editor’s Choice goes to the reader who said, “Regardless of who wins, hoping for a good competitive game!!” Thanks to everyone who responded to our 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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