Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
June 3rd, 2016
Benefits & Administration
Employees Willing to Pay More for Retirement Benefits
Nearly one-quarter of employees say they will have to work past age 70, but many of them may not be able to due to stress and health issues.Read more >
First State-Run Plan for Private-Sector Set to Launch
Starting January 1, 2017, Washington will be the first state to offer a state-run retirement plan for private-sector workers. According to the Puget Sound Business Journal, the Small Business Retirement Marketplace will be an Internet site through which individuals and employees of small companies can set up retirement plans. It will operate much like the Washington Health Exchange does now for individuals to buy health insurance.Read more >
MOST READ ARTICLES

2021 Plan Sponsor of the Year
Administration
A Checklist for Retirement Plan Committees
Administration
How to Effectively Measure Retirement Plan Success
Products, Deals and People
Willis Towers Watson Offers Illiquidity Risk Premium Index
“The index helps plan sponsors determine where and when it is good to take liquidity risk,” says Thierry Adant, with Willis Towers Watson.Read more >
Investment Product and Service Launches
Oppenheimer unveils new infrastructure fund; SEI adds Real Assets Multi-Strategy Fund to CIT; Morningstar ‘Framework’ Helps Glide Path Decisions, and more.Read more >
Economic Events

In the week ending May 28, the advance figure for seasonally adjusted initial claims for unemployment insurance was 267,000, a decrease of 1,000 from the previous week’s unrevised level of 268,000, the Labor Department reported. The four-week moving average was 276,750, a decrease of 1,750 from the previous week’s unrevised average of 278,500.

The average interest rate for a 30-year fixed-rate mortgage is 3.66%, up from 3.64% one week ago, according to Freddie Mac. The average interest rate for a 15-year fixed-rate mortgage is 2.92%, up from 2.89%.
Market Mirror

Yesterday, the Dow closed 48.89 points (0.27%) higher at 17,838.56, the NASDAQ increased 19.11 points (0.39%) to 4,971.36, and the S&P 500 was up 5.76 points (0.27%) at 2,105.09. The Russell 2000 gained 7.54 points (0.65%) to finish at 1,170.58, and the Wilshire 5000 climbed 100.86 points (0.47%) to 21,808.88.

On the NYSE, 3.1 billion shares traded, with a 1.8 to 1 ratio of advancers to decliners. On the NASDAQ, 2.7 billion shares traded, with 3 advancing issues for every 2 declining issues.

The price of the 10-year Treasury note increased 10/32, bringing its yield down to 1.803%. The price of the 30-year Treasury bond climbed 23/32, decreasing its yield to 2.582%.
Compliance
PBGC Issues Proposed Rule for Multiemployer Plan Mergers
The proposed rule would provide guidance about the process for requesting a facilitated merger, including a request for financial assistance.Read more >
Investing
New Credit Market Liquidity Regime Requires Action
Defined benefit (DB) plan sponsors are credit investors; they have investments in Treasury bonds and investment grade corporate bonds, and they may also invest in direct lending. Liquidity can be a concern when there is an asset/liability mismatch in commingled vehicles, and there is a risk that funds may sell illiquid assets to meet redemption requests. Thierry Adant, a consultant for credit research at Willis Towers Watson in New York City, tells PLANSPONSOR there is a new market liquidity regime, in part due to banks no longer being in the business of holding an “inventory” of credit bonds to match redemption demand. DB plan sponsors should act to protect themselves in the new regime, and in some cases, they can even capitalize from it.Read more >
Small Talk

ON THIS DATE: In 1539, Hernando De Soto claimed Florida for Spain. In 1621, the Dutch West India Company received a charter for New Netherlands (now known as New York). In 1784, the U.S. Congress formally created the United States Army to replace the disbanded Continental Army. In 1800, John Adams moved to Washington, D.C. He was the first President to live in what later became the capitol of the United States. In 1851, the New York Knickerbockers became the first baseball team to wear uniforms. In 1932, Lou Gehrig set a major league baseball record when he hit four consecutive home runs. In 1952, a rebellion by North Korean prisoners in the Koje prison camp in South Korea was put down by American troops. In 1959, the first class graduated from the Air Force Academy in Colorado Springs, Colorado. In 1965, Edward White became the first American astronaut to do a “space walk” when he left the Gemini 4 capsule. In 1989, Chinese army troops positioned themselves to begin a sweep of Beijing to crush student-led pro-democracy demonstrations in Tiananmen Square.

 

And now it’s time for FRIDAY FILES!
Dinosaurs are still among us.Read more >
College students may choose some odd places to take naps.Read more >

Somewhere in Italy, a man who paid his $335 per month child support in the form of pies, calzones and other meals made by his business after the recession made it hard for him to do so in cash any longer, has been sued by his former wife. The man’s defense attorney argued that, despite enduring extremely tough times, he’d still fulfilled his obligations and had taken in his daughter in 2011 when her relationship with her mother broke down — after which the mother was then supposed to pay child support to the man. A judge found there was no evidence of any crime being committed.

In Manchester, New Hampshire, police responded to a robbery at a Shop-N-Go. According to the Associated Press, a witness said the robber apologized for the theft as he fled the scene and said he needed the money. The store clerk called police hours later and said the man had returned, crying, to “turn himself in.”

Somewhere in Louisiana, a blind man is suing McDonald’s for only serving cars at its drive-thru windows. Many McDonald’s locations only serve customers at the drive-thru window during late night hours. The man’s lawyer told the Chicago Tribune that getting a late night snack at McDonald’s is “a quintessentially American activity that should not be denied to someone because of their disability.”
A new way to try tying your shoes.Read more >

In Birmingham, Alabama, a man called 911 to say he was lost in the woods. A police officer went to the scene and was able to locate the man. However, neither knew the way back to the road. According to the Associated Press, the two spend three hours lost until a K9 unit was able to rescue them.

In Quincy, Massachusetts, a six-year-old boy was riding with his father to a car wash, when his father ran a red light. The boy called his father on it, and said he was going to call the police on him when he got home. Sure enough, when they got home, the boy called 911 to report his father. The dispatcher asked to speak with the father, who apologized. The boy told CBS Boston if it happened again, he wouldn’t call the police. “I’ll call the eye doctor so he can fix his eyes,” he said.

In West Fargo, North Dakota, Firefighters were called to a deck fire at an apartment unit, and while en route, were notified that the occupant of the apartment was on home oxygen and could not leave the apartment or put out the fire. When firefighters arrived, they found the remains of a planter that had caught fire. The flames had extended into the siding and wood decking adjacent to the planter. However, the fire was already out. The Twin Cities Pioneer Press reported that five neighborhood kids saw the fire, alerted the occupant, and then used their Super Soaker water guns to control the blaze before firefighters arrived.

Have a great weekend, everyone!
Share the good news with a friend! Pass the NewsDash along—and tell your friends/associates they can sign up for their own copy.Read more >

Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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