Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
July 28th, 2017
Benefits & Administration
Advisers Responding to Plan Sponsor Demands
Advisers are moving away from focusing on evaluating funds for a plan’s lineup and mitigating fiduciary risk and expanding their scope by offering a broader set of services to keep up with plan sponsor demands, including offering services pertaining to financial wellness and HSAs.   Read more >
Helping Millennials Find Money to Save
Eighty-five percent of Millennials believe it is important to start saving for retirement before age 28, but, in fact, only 45% do, according to Cerulli. The most frequently cited reason for not starting to save for retirement is that they do not make enough money. “Education on topics such as personal budgeting, student loan debt and adjustments to spending habits can help Millennials free up funds for retirement savings,” a Cerulli analyst says.   Read more >
MOST READ ARTICLES
1
The Senate Math That Could Block SECURE Act
2
House Committee Advances Bill to Establish Union Pension Lifeline Program
3
Open MEPs Not for Every Plan Sponsor
4
Driving Financial Wellness at Work
5
Pension Participants Claim ERISA Breaches in Dow DuPont Pension Transfer
Products, Deals and People
Investment Products and Services Launches
Pensionmark rolls out new investment reporting tools; American Century enhances One Choice Target-Date Portfolios; Nationwide partners with Hueler for new annuity; and more.   Read more >
Economic Events

New orders for manufactured durable goods in June increased $14.9 billion or 6.5% to $245.6 billion, the U.S. Census Bureau announced. This increase, up following two consecutive monthly decreases, followed a 0.1% May decrease. Excluding transportation, new orders increased 0.2%. Excluding defense, new orders increased 6.7%. Transportation equipment, also up following two consecutive monthly decreases, led the increase, $14.6 billion or 19.0% to $91.6 billion.

In the week ending July 22, the advance figure for seasonally adjusted initial claims for unemployment insurance was 244,000, an increase of 10,000 from the previous week’s revised level of 234,000, the Labor Department reported. The four-week moving average was 244,000, unchanged from the previous week’s revised average of 244,000.

The average interest rate for a 30-year fixed-rate mortgage is 3.92%, down from 3.96% one week ago, according to Freddie Mac. The average interest rate for a 15-year fixed-rate mortgage is 3.20%, down from 3.23%.

Market Mirror

Thursday, the Dow closed 85.54 points (0.39%) higher at 21,796.55, the NASDAQ closed 40.56 points (0.63%) lower at 6,382.19, and the S&P 500 was down 2.41 points (0.10%) at 2,475.42. The Russell 2000 decreased 8.65 points (0.60%) to 1,433.62, and the Wilshire 5000 increased 42.93 points (0.17%) to 25,748.80.

The price of the 10-year Treasury note was down 7/32, increasing its yield to 2.314%. The price of the 30-year Treasury bond decreased 23/32, bringing its yield up to 2.928%.

Compliance
Health Plan Provider Settles With DOL
The U.S. Department of Labor (DOL) and a third-party administrator that provides employee health benefit plans with access to a network of doctors, hospitals and other medical providers have reached an agreement in which the administrator has committed to improve its communications with health plans and to return certain fees.   Read more >
Michigan Reforms Teacher Pension System
Michigan Governor Rick Snyder has signed a bill modernizing the Michigan Public School Employees Retirement System (MSPERS), increasing the state’s share to defined contribution (DC) plans, while reducing the unfunded liabilities of the overall system. Senate Bill 401 will close the current MSPERS “hybrid” plan to new enrollees as of February 1, 2018, and create a new 401(k)-style defined contribution plan with an automatic employer contribution of 4% of the employee’s salary, and an additional voluntary matching contribution of 3%.   Read more >
Investing
Sponsors Reconsidering Fixed Income
Even though several plan sponsors are concerned about helping participants preserve capital especially as they near retirement, a study by T. Rowe Price show many can use improvement when it comes to executing fixed-income strategies.   Read more >
The Move to Non-Proprietary TDFs
Larger plans are taking the lead in moving away from proprietary TDFs, and research shows plan sponsors are also moving to CIT TDFs.   Read more >
Small Talk

ON THIS DATE: In 1865, the American Dental Association proposed its first code of ethics. In 1866, the metric system was legalized by the U.S. Congress for the standardization of weights and measures throughout the United States. In 1868, the Fourteenth Amendment to the U.S. Constitution was declared in effect. The amendment guaranteed due process of law. In 1914, World War I officially began when Austria-Hungary declared war on Serbia. In 1941, plans for the Pentagon were approved by the U.S. House of Representatives. In 1951, the Walt Disney film “Alice in Wonderland” was released. In 1998, Bell Atlantic and GTE announced $52 billion deal that created the second-largest phone company.

 

And now it’s time for FRIDAY FILES!

In New Zealand, to escape rising waters, some wild rabbits caught rides on sheep.   Read more >
In Columbus, Ohio, the Ohio State Fair this year will feature a display of sculptures made from butter. It includes the traditional cow and calf along with four student-athletes and a 6-foot-tall (1.8-meter-tall) bottle colored to look like chocolate milk. According to the Associated Press, the American Dairy Association Mideast says the sculpture salutes chocolate milk as the official drink of the Ohio High School Athletic Association. The dairy association says five sculptors spent about 500 hours creating the display, which is made from about 2,000 pounds (900 kilograms) of butter. [pic]   Read more >

In Lebanon, New Hampshire, a man graduated from Lebanon High School in 1965, and the Valley News reports he lost his ring before being drafted into the Air Force that year. The retired 70-year-old cook got a call recently from a woman in Wilder, Vermont, just across the state line. She found the ring, which was initialed, in her backyard.

 

In Washington, D.C., a man was throwing out trash at an apartment building when he thought he dropped his cellphone in the chute. A fire spokesman says the man leaned in to check and fell inside. The Associated Press reports that the man was able to call 911 from inside the trash chute. Firefighter rescue crews pumped fresh air down the chute to the man through a hose and eventually hauled him out using a harness.

 

In Fort Lauderdale, Florida, a man went into a bank, made a gun motion with his hand and demanded money from the teller, who gave him about $4,700 in a bag. The Sun Sentinel reports that he then stripped naked and ran down the street throwing the stolen money. The man thought the spectacle would somehow jump-start his career as a comedian.

 

Have a great weekend, everyone!

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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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