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PLANSPONSOR NEWSDASH LOGO June 11th, 2021
Insight on Plan Design & Investment Strategy Every Weekday
Benefits
Considerations for 2022 Health and Voluntary Benefit Offerings
Considerations for 2022 Health and Voluntary Benefit Offerings
There are new ways to think about benefits offerings and cost negotiations following the experience of the pandemic.
Data and Research
DB Plan Funded Status Remains Stable in May
Consultants say now is the time to evaluate interest rate and equity market risk strategies, as well as whether and how to take advantage of pension funding relief legislation passed in March.
Most Read
Compliance
New Financial Audit Rule Increases Requirements for Plan Sponsors
Research
2021 Recordkeeping Survey

2021 Plan Sponsor of the Year
SPONSORED BY: John Hancock Investment Management
Glide Paths Within the Glide Path
The allocation process for a target-date fund may be more than shifting from equities to fixed income over time. Instead, to maintain an appropriate balance at different lifecycle stages, there may be numerous glide paths involving subcategories of the primary debt and equity asset classes, along with alternatives.
Economic Events
In May, the Consumer Price Index for All Urban Consumers (CPI-U) rose 0.6%, seasonally adjusted (SA); rising 5.0% over the last 12 months, not seasonally adjusted (NSA), the Bureau of Labor Statistics announced. The index for all items less food and energy increased 0.7% in May, SA; up 3.8% over the year, NSA.

Real average hourly earnings for all employees decreased 0.2% in May, SA. Average hourly earnings increased 0.5% and CPI-U increased 0.6%. Real average weekly earnings decreased 0.1% over the month.

Interest on a 30-year fixed-rate mortgage (FRM) averaged 2.96% for the week ending June 10, down from last week when it averaged 2.99%, according to Freddie Mac. A year ago at this time, the 30-year FRM averaged 3.21%. Interest on a 15-year FRM averaged 2.23%, down from last week when it averaged 2.27%. A year ago at this time, the 15-year FRM averaged 2.62%.

In the week ending June 5, the advance figure for seasonally adjusted initial claims for unemployment insurance was 376,000, a decrease of 9,000 from the previous week’s unrevised level of 385,000, the Labor Department reported. This is the lowest level for initial claims since March 14, 2020, when it was 256,000. The four-week moving average was 402,500, a decrease of 25,500 from the previous week’s unrevised average of 428,000. This is the lowest level for this average since March 14, 2020, when it was 225,500.
Market Mirror
Thursday, the Dow was up 19.10 points (0.06%) at 34,466.24, the Nasdaq climbed 108.58 points (0.78%) to 14,020.33, and the S&P 500 closed 19.63 points (0.47%) higher at 4,239.18. The Russell 2000 lost 15.72 points (0.68%) to finish at 2,311.41, and the Wilshire 5000 increased 184.73 points (0.42%) to 44,468.49.

The price of the 10-year Treasury note was up 4/32, decreasing its yield to 1.444%. The price of the 30-year Treasury bond increased 31/32, bringing its yield down to 2.131%.
Compliance
Jumbo 403(b) Plan Hit With Excessive Fee Suit
Fiduciaries of the Wake Forest University Baptist Medical Center plan are accused of failing to ensure reasonable investment fees and mismanaging revenue sharing to pay for administrative expenses.
‘Down Market’ ERISA Suit Nets $1.8M Settlement
CDI Corp. admits no wrongdoing in the settlement agreement, which closely resembles settlements reached in other excessive fee suits, apart from its modest size.  
Products
Investment Product and Service Launches
Transamerica announces latest R6 share classes and ESG Asset launches new capital health care disruptors fund.
Small Talk
ON THIS DATE: In 1895, Charles E. Duryea received the first U.S. patent granted to an American inventor for a gasoline-driven automobile. In 1919, Sir Barton became the first horse to capture the Triple Crown when he won the Belmont Stakes in New York City. In 1936, the Presbyterian Church of America was formed in Philadelphia. In 1963, facing federalized Alabama National Guard troops, Alabama Governor George Wallace ended his blockade of the University of Alabama in Tuscaloosa and allowed two African American students to enroll. In 1967, the Six-Day War between Israel and its Arab neighbors ended with a United Nations-brokered cease-fire. In 1972, Hank Aaron tied the National League record for 14 grand-slam home runs in a career. In 1979, John Wayne, an iconic American film actor famous for starring in countless westerns, died at age 72 after battling cancer for more than a decade. In 1990, the U.S. Supreme Court struck down a law that would have prohibited the desecration of the American Flag.

And now it’s time for some FRIDAY FUN!
This reporter didn’t even scream when a lion snuck up on her.

This test to see who their dog loves more just ended up confusing it.

This spirited Jack Russell has a clever way to exit the pool.

In Liverpool, England, a drug dealer was caught by police because of a picture with cheese. According to the Associated Press, the man was arrested after he posted a photo of himself holding a cheese block from the reputable British retailer, Marks & Spencer on the encrypted messaging service EncroChat, via his handle “Toffeeforce.” Unbeknownst to him, the service had been cracked by police in Europe. From that, his palm and fingerprints were analyzed, and police were able to catch him.

In University Heights, Ohio, the library has finally received a late return. The Associated Press reports that a man living in San Francisco mailed Bob Dylan’s “Self Portrait” album—which he checked out in 1973 when he was in middle school—back to the library, along with a letter apologizing for its 48-year tardiness.

Have a great weekend, everyone!
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