| Benefits & Administration | Research Supports Use of Auto Investing Solutions | Research from the Columbia Business School
concludes that retirement plan investors may do better to check their
portfolios less often and leave investment decisions to others. The research model
predicts that given the choice, most people prefer to stay inattentive to their
portfolios, and this makes them more willing to choose an investment solution
that automatically diversifies and rebalances their portfolios or to pay for a
professional portfolio manager.Read more > | Actuaries Grade Retirement Systems, Reform Proposals | The American Academy of Actuaries has released
grades for major retirement systems and public policy proposals. The group
evaluated how well public and private retirement systems—and proposals to reform them—meet the needs of participants, sponsors and other
stakeholders. Of the five systems and proposals that were graded, the academy
bestowed its highest marks on retirement legislation proposed last year by former
U.S. Senator Tom Harkin and a Canadian government pension system.Read more > | | Products, Deals & People | New hire R. Evan Inglis is tasked with providing
deep technical expertise for Nuveen Asset Management to further develop the
firm’s proprietary pension analytics and risk models.Read more > | In an effort to step up its support of
retirement plans sold to government entities, MassMutual’s retirement services
has added three managing directors: Kelly Bush, Pete Ganey, and Richard Snyder.
The three will support sales of defined contribution (DC) retirement plans in
states, countries and municipalities.Read more > | | Economic Events | In the week ending January 3, the
advance figure for seasonally adjusted initial claims for unemployment
insurance was 294,000, a decrease of 4,000 from the previous week’s unrevised
level of 298,000, the Labor Department reported. The four-week moving average
was 290,500, a decrease of 250 from the previous week’s unrevised average of
290,750.
The average interest rate for a 30-year fixed-rate
mortgage is 3.73%, down from 3.87% one week ago, according to Freddie Mac. The
average interest rate for a 15-year fixed-rate mortgage is 3.05%, down from
3.15%.
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| Market Mirror | Major U.S.
stock indices continued their positive momentum Thursday, with the Dow gaining
323.35 points (1.84%) to finish at 17,907.87. The NASDAQ climbed 85.72 points
(1.84%) to 4,736.19, and the S&P 500 closed 36.24 points (1.79%) higher at
2,062.14. The Russell 2000 was up 20.16 points (1.71%) at 1,196.13, and the
Wilshire 5000 increased 370.72 points (1.74%) to 21, 672.39.
On the NYSE,
3.2 billion shares traded, with 3.4 advancing issues for every declining issue.
On the NASDAQ, 2.7 billion shares changed hands, with a 2.8 to 1 ratio of
advancers to decliners.
The price of the 10-year Treasury note was down 14/32,
increasing its yield to 2.018%. The price of the 30-year Treasury bond fell 1
14/32, bringing its yield up to 2.597%.
| | Compliance | 2nd Circuit Agrees with Reformation of Cash Balance Plan | The 2nd U.S. Circuit Court of Appeals has agreed
with a district court’s reformation of CIGNA Corporation’s cash balance pension
plan, and decided the court had discretion to reform the plan. The long-running
case stems from CIGNA’s conversion from a traditional pension plan to a cash
balance plan in 1998. A district court found CIGNA liable for inadequate
disclosures relating to the plan and ordered a change in the plan’s provisions.Read more > | DOL Reports 2014 Enforcement Results | The Department of Labor’s (DOL) Employee
Benefits Security Administration (EBSA) recovered nearly $600 million for
direct payment to employee plans, participants and beneficiaries. In fiscal year 2014,
EBSA closed 3,928 civil investigations, with 2,541 of those cases (64.7%)
resulting in monetary compensation for plans or other corrective action.Read more > | | From the Magazine | The Year in Review | Rules and regulations govern the existence,
design and administration of all retirement plans—effectively dictating all
that goes into plan oversight. Every year, the Internal Revenue Service (IRS),
Securities and Exchange Commission (SEC) and the Department of Labor (DOL)
publish guidelines for the retirement plan industry. Those rules, coupled with
major court decisions, provide the legal and regulatory framework for defined
benefit (DB) and defined contribution (DC) plans. With this in mind, we
gathered the top 20 such stories from 2014.Read more > | | Small Talk | ON
THIS DATE: In 1793,
Jean-Pierre Blanchard made the first successful balloon flight in the U.S. In 1848, the first commercial bank was
established in San Francisco. In 1861,
the state of Mississippi seceded from the United States. In 1984, Clara Peller was first seen by TV
viewers in the “Where’s the Beef?” commercial campaign for Wendy’s. In
2002, the U.S. Justice Department
announced that it was pursuing a criminal investigation of Enron Corp. The
company had filed for bankruptcy on December 2, 2001. In 2006, Matthew Broderick and Nathan Lane received stars on the
Hollywood Walk of Fame.
And now it’s time for FRIDAY FILES!
| Have fun with this arctic blast; see what
happens when you blow bubbles in extreme cold temperature.Read more > | A fun mother/son dance at a wedding.Read more > | In Seoul, South Korea,
health authorities said they are investigating a cosmetic surgery clinic after
photographs emerged online apparently showing medical staff partying in an
operating room. In one selfie, posted on Instagram, staff in scrubs appeared to
stand around a candlelit birthday cake with an apparently unconscious patient
lying on a bed behind them, The Guardian reports. Another picture showed a
staff member, wearing a mask and a surgery gown, jokingly placing a gel breast
implant over her chest in an operating room. Another showed staff posing while
eating hamburgers. “Our officials are investigating the clinic to see if there
was any violation of medical laws,” said a spokeswoman from the public health
department in Seoul’s Gangnam district, according to The Guardian. “They may
look into whether such behavior damaged the reputation of medical
practitioners.” Under South Korea’s medical law, behavior deemed to tarnish the
reputation of the industry can result in suspension.
In Roswell, New Mexico, a
man scratched off a lottery ticket that showed he had won $500,000. But, when
he went back to the store at which he bought the ticket to show the staff, they
said it was a mistake. The ticket shows two scratched off boxes with a “1” that
matches a winning number, but there’s a very faint indication that another
number was supposed to be printed next to the “1’s”. The New Mexico Lottery
said it was a flaw in the ticket and offered him $100 worth of scratch-off
tickets instead.
In West Palm Beach, Florida,
a man walking on a sidewalk heard moaning coming from the lot of a car
dealership, and when he looked for the source of the noise, he saw a couple
having relations on top of a vehicle at the dealership. The couple caught him
looking and started yelling at him, the Sun-Sentinel reports. The man called
police. When police arrived, the couple was sitting in a van in the lot—the van
belonged to the dealership, not the couple. While being arrested, the male
member of the couple spit on a police officer. Both are charged with lewd and
lascivious behavior, trespassing and auto burglary. The male faces an
additional charge of battery on a law enforcement officer.
| This cat doesn’t understand why he can’t catch
these fish. They are soooo close.Read more > | In Chicago, Illinois, a man
rode his bike to a police station to report his iPhone stolen. He didn’t have
his bike lock with him, so he asked police if he could bring his bicycle inside
the station. They agreed, so he rolled it into the station then filled out a police
report. When he turned around to leave, his bike was gone. He first thought it
was a joke by one of the officers, but it wasn’t, his bike was stolen from the
police station.
In Granite City, Illinois,
a man set off a courthouse metal detector about 10 years ago, went to the
doctor and had an x-ray that found something metal lodged in his arm. At the
time, the doctor said to leave it alone since he had no pain and his arm was
functioning fine. However, recently the man experienced pain, so he had surgery,
during which a surgeon removed a 7-inch long turn signal from a Ford Thunderbird
the man had wrecked 51 years ago. The man said he was treated for injuries to
the surface of his arm at the time of the wreck.
In Vineland,
New Jersey, police spotted a driver running a red light and pulled him
over. The man failed a roadside sobriety test and was taken to jail. According
to the Associated Press, at the jail the man claimed police shouldn’t charge
him because, “It’s New Year’s Eve, everyone drives drunk.”
Have a great weekend
everyone! | Share the good news with a friend! Pass the Dash along – and tell your
friends/associates they can sign up for their own copy.Read more > | News from PLANSPONSOR.com
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