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PLANSPONSOR NEWSDASH LOGO June 16th, 2021
Insight on Plan Design & Investment Strategy Every Weekday
Compliance
The DOL Has Begun Retirement Plan Cybersecurity Audits
The DOL Has Begun Retirement Plan Cybersecurity Audits
Attorneys say the requests plan fiduciaries have received ask for a broad amount of information and documentation, and they urge fiduciaries to act on the DOL’s recent guidance.
Ask the Experts
Employee Account Balances Grandfathered for In-Service Distributions
“We sponsor an ERISA 403(b) plan that does not permit in-service withdrawals, even at age 59.5 or for hardship. Recently, a long-term employee (hired in 1980) claimed that she has a small amount of what the plan recordkeeper called ‘grandfathered’ money that she could withdraw while still employed. I read the plan document, and it does say something about a ‘12/31/88 account balance,’ but the language is quite confusing! Is this employee correct?”
Most Read
Research
2021 Recordkeeping Survey
Benefits
Giving Employees the Financial Wellness Help They Want
Compliance
DOL Clears Up Timing for Lifetime Income Illustrations
SPONSORED BY: Capital Group
What's in store for emerging markets debt in 2021?
High yield bonds aren’t the only answer to the search for yield. Consider emerging market bonds.
Economic Events
The producer price index for final demand increased 0.8% in May, as prices for final demand goods rose 1.5% and the index for final demand services moved up 0.6%, according to the Bureau of Labor Statistics. The final demand index advanced 6.6% for the 12 months ended in May.

Advance estimates of retail and food services sales for May, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $620.2 billion, a decrease of 1.3% from the previous month, but 28.1% above May 2020, the Census Bureau announced. Total sales for the March through May period were up 36.2% from the same period a year ago. Retail trade sales were down 1.7% from April, but up 24.4% from last year. Clothing and clothing accessories stores were up 200.3% from May 2020, while food services and drinking places were up 70.6% from last year.

The combined value of distributive trade sales and manufacturers’ shipments for April, adjusted for seasonal and trading day differences but not for price changes, was estimated at $1,621.1 billion, up 0.6% from March and up 40.0% from April 2020.
Market Mirror
Tuesday, the Dow closed 94.42 points (0.27%) lower at 34,299.33, the Nasdaq lost 101.29 points (0.71%) to finish at 14,072.86, and the S&P 500 decreased 8.56 points (0.20%) to 4,246.59. The Russell 2000 was down 6.07 points (0.26%) at 2,320.07, and the Wilshire 5000 fell 139.37 points (0.31%) to 44,535.80.

The price of the 10-year Treasury note was unchanged, with its yield down to 1.497%. The price of the 30-year Treasury bond decreased 24/32, bringing its yield up to 2.193%.
Compliance
Differences Between Safe Harbor and Traditional DC Plans
The primary distinction is that sponsors can design safe harbor plans to avoid having to perform nondiscrimination and top-heavy testing.
Benefit Plan Fiduciaries and Service Providers Anticipating New Litigation Risks
Experts say COVID-19 could open the door to new a new category of ERISA lawsuits.  
Small Talk
A survey in which 2,500 Americans were asked about their password behaviors and tendencies found a fifth of employers don’t regularly require their employees to change their work program passwords. The poll by PC Matic reveals bad password practices exist in both personal and work use, and the survey report includes top tips for individual users, as well as employers.
ON THIS DATE: In 1884, the first roller coaster in America opened at Coney Island, in Brooklyn, New York. In 1903, Ford Motor Company was incorporated. In 1952, “Anne Frank: Diary of a Young Girl” was published in the United States. In 1963, aboard Vostok 6, Soviet Cosmonaut Valentina Tereshkova became the first woman to travel into space. In 1981, the “Chicago Tribune” purchased the Chicago Cubs baseball team from the P.K. Wrigley Chewing Gum Company for $20.5 million. In 2008, California began issuing marriage licenses to same-gender couples.

WEDNESDAY WISDOM: “Prejudice is a great time saver. You can form opinions without having to get the facts.”—E.B. White, American writer
Industry Intel Roundup—Featured White Paper
PLANSPONSOR is pleased to present the next edition of our Industry Intelligence roundup. This week, we are featuring white papers offering key insights and analysis about the industry. The content was created to educate, inform and offer ideas for plan sponsors regarding plan design, investing, administration and compliance.
SPONSORED BY: Invesco
Get Rid of All the Jargon
Learn how to speak to DC retirement plan participants on their own terms, and how better communications could boost participation.
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