Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
June 28th, 2019
From the Magazine
Infrastructure Fees
In the plaintiffs’ bar’s apparently never-ending onslaught against the retirement industry, plaintiffs have recently concocted new claims and filed new complaints relating to the compensation received by plan service providers. Most recently, plaintiffs have turned their attention to so-called infrastructure fees that recordkeepers receive from mutual fund companies in exchange for making their funds available on their recordkeeping platform. This new development and focus by the plaintiffs’ bar has a plethora of implications for plans and their service providers. Read more >
Products, Deals and People
Investment Product and Service Launches
American Century Investments to develop new equity and fixed income suite; HealthSavings Administrators releases HSA investment vehicle; DWS Group launches ESG ETF; and more. Read more >
MOST READ ARTICLES
1
Adidas Sued Over Excessive Fees for 401(k) Participants
2
(b)lines Ask the Experts – Proper Delivery Method for SPDs
3
Yale Sued Over Wellness Program ‘Penalty’
4
Employees in Two States Miss Out on One HSA Benefit
5
Some Help for Women’s Retirement Savings Gap May Be Coming
OneAmerica Expands Online Services for PRT Accounts
Beginning in the third quarter, pension annuity customers whose accounts came to OneAmerica through a pension risk transfer (PRT) will be able to see to their account, make banking changes, change tax withholding, and manage their beneficiary information. Read more >
Sponsored message from Capital Group
Keys to our target date success - Capital Group & American Funds
The types of equities in target date funds can have a significant impact on outcomes. Learn more about our approach to equities in American Funds Target Date Retirement Series. Read more >
Economic Events

In the week ending June 22, the advance figure for seasonally adjusted initial claims for unemployment insurance was 227,000, an increase of 10,000 from the previous week’s revised level of 217,000, the Labor Department reported. The four-week moving average was 221,250, an increase of 2,250 from the previous week’s revised average of 219,000.

 

The average interest rate for a 30-year fixed-rate mortgage is 3.73%, down from 3.84% one week ago, according to Freddie Mac. The average interest rate for a 15-year fixed-rate mortgage is 3.16%, down from 3.25%.

Market Mirror

Thursday, the Dow was down 10.24 points (0.04%) at 26,526.58, the NASDAQ closed 57.79 points (0.73%) higher at 7,967.76, and the S&P 500 increased 11.14 points (0.38%) to 2,924.92. The Russell 5000 jumped 28.78 points (1.90%) to finish at 1,546.55, and the Wilshire 5000 closed 177.14 points (0.59%) higher at 30,069.37.

 

The price of the 10-year Treasury note increased 25/32, bringing its yield down to 2.011%. The price of the 30-year Treasury bond increased 31/32, decreasing its yield to 2.528%.

Compliance
Employees’ Plans to Work Longer Could Be Thwarted by Age Bias
Two more age bias cases were filed recently by the Equal Employment Opportunity Commission, and an agency report says age discrimination can thwart employees’ plans to work longer and could affect retirement plan drawdown strategies. Read more >
Gucci Settles Excessive Fee Suit
Gucci will pay $1.2 million to settle a lawsuit alleging the company and its benefits committee breached their fiduciary duties under the Employee Retirement Income Security Act (ERISA) by offering plan investments with excessive fees, among other things. Read more >
Small Talk

ON THIS DATE: In 1894, Congress made Labor Day a U.S. national holiday. In 1902, Congress passed the Spooner bill; it authorized a canal to be built across the isthmus of Panama. In 1911, Samuel J. Battle became the first African-American policeman in New York City. In 1914, Archduke Franz Ferdinand of Austria, the heir to the Austro-Hungarian throne, was assassinated in Sarajevo along with his wife Duchess Sophie, setting off World War I. In 1919, the Treaty of Versailles was signed ending World War I exactly five years after it began. The treaty also established the League of Nations. In 1939, Pan American Airways began the first transatlantic passenger service. In 1938, Congress created the Federal Housing Administration (FHA) to insure construction loans. In 1950, North Korean forces captured Seoul, South Korea. In 1971, the U.S. Supreme Court overturned the draft evasion conviction of Muhammad Ali. In 1996, The Citadel voted to admit women, ending a 153-year-old men-only policy at the South Carolina military school. In 1996, Charles M. Schulz received a star on the Hollywood Walk of Fame. In 2004, the U.S. turned over official sovereignty to Iraq’s interim leadership. The event took place two days earlier than previously announced to thwart insurgents’ attempts at undermining the transfer. In 2007, the American bald eagle was removed from the endangered species list.

 

 

And now it’s time for FRIDAY FILES!

Rule No. 1 in racing: Make sure you’re in the right gear. Read more >
Dogs feeling guilty. Read more >
I don’t think the baby is ready for this walking toy. Read more >

Have a great weekend!

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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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