June 2nd, 2020 Insight on Plan Design & Investment Strategy Every Weekday Investing Pandemic Shines a New Light on Climate Change and ESG Investing The COVID-19 crisis is showing plan sponsors how corporate behaviors affect the environment and that encouraging positive ones with investment dollars can benefit participants as well. Compliance Supreme Court Decision in Thole v. U.S. Bank Has Major Implications for Pensions The ruling effectively establishes that individual pension plan participants cannot sue their employer for a fiduciary breach if their own benefit has not been cut or otherwise altered. Most Read 2020 Defined Benefit Administration Survey Ask the Experts Clarification of Loan Repayment Delay Provisions of CARES Act Compliance Use of Fidelity Active Management Funds Questioned in Court Economic Events Construction spending during April was estimated at a seasonally adjusted annual rate of $1,346.2 billion, 2.9% below the revised March estimate of $1,386.6 billion, the Census Bureau reported. The April figure is 3.0% above the April 2019 estimate of $1,307.1 billion. During the first four months of this year, construction spending amounted to $412.5 billion, 7.1% above the $385.2 billion for the same period in 2019. Market Mirror Yesterday, the Dow gained 91.91 points (0.36%) to finish at 25,475.02, the NASDAQ closed 62.18 points (0.66%) higher at 9,552.05, and the S&P 500 was up 11.42 points (0.38%) at 3,055.73. The Russell 2000 increased 11.34 points (0.81%) to 1,405.37, and the Wilshire 5000 climbed 181.03 points (0.59%) to 31,108.07. The price of the 10-year Treasury note was down 1/32, increasing its yield to 0.670%. The price of the 30-year Treasury bond fell 1 24/32, bringing its yield up to 1.464%. Compliance Has the Supreme Court ‘Gutted’ ERISA Protections for Pensioners? Plaintiffs’ attorneys, bemoaning the new Supreme Court ruling in Thole v. U.S. Bank, say participants in defined benefit plans are essentially left with no way to challenge or seek redress for improper actions taken by plan fiduciaries. IRS Provides Additional Deadline Relief to Plan Sponsors Deadlines have been moved for single-employer and multiemployer DB plans and 403(b) plans, among others. Parties in Emory University 403(b) Plan Lawsuit File Settlement Agreement In addition to paying $16.75 million, the settlement agreement calls for a review of investments and a recordkeeping request for proposals. Opinions COVID-19 Compliance Corner: Deadline Extensions Provide Relief to Retirement Plan Sponsors Each week, Carol Buckmann, with Cohen & Buckmann P.C., will explain legislative provisions or official guidance related to the COVID-19 pandemic that affect retirement plan sponsors. Small Talk ON THIS DATE: In 1865, in an event that is generally regarded as marking the end of the Civil War, Confederate General Edmund Kirby Smith, commander of Confederate forces west of the Mississippi, signed the surrender terms offered by Union negotiators. In 1924, with Congress’ passage of the Indian Citizenship Act, the government of the United States conferred citizenship on all Native Americans born within the territorial limits of the country. In 1935, Babe Ruth ended his Major League Baseball playing career after 22 seasons, 10 World Series and 714 home runs. In 1953, Queen Elizabeth II was formally crowned monarch of the United Kingdom. In 1966, Surveyor 1, the U.S. space probe, landed on the moon and started sending photographs back to Earth of the Moon’s surface. It was the first soft landing on the Moon. In 1997, Timothy McVeigh, a former U.S. Army soldier, was convicted on 15 counts of murder and conspiracy for his role in the 1995 terrorist bombing of the Alfred P. Murrah Federal Building in Oklahoma City. TRIVIAL PURSUITS: You may know the phrase “Ay, there’s the rub,” from Shakespeare’s “Hamlet.” But, what does “the rub” mean and from where did it originate? Did someone forward you this newsletter? Sign up here to get NEWSDash directly in your mailbox!

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