Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
June 6th, 2016
Benefits & Administration
State-Run Plans Face Similar Challenges as DC Plans
A report released by The Pew Charitable Trusts, “How States Are Working to Address the Retirement Savings Challenge: An Analysis of State-Sponsored Initiatives to Help Private Sector Workers Save,” examines efforts in 25 states and finds the vast majority of workers would participate in a workplace retirement savings plan if given a chance. However, it found potential problems state-run plans may face, some of which employer-sponsored defined contribution (DC) retirement plans also face.Read more >
In Some Cities, Small-Business Plan Sponsors Are Rare
More than 40% of full-time private sector workers say they still lack access to either a pension or an employer-based retirement savings plan such as a 401(k), new research from the Pew Charitable Trusts shows. Notably, the research report says “metropolitan areas with relatively low rates of access generally have more people working for small employers.”Read more >
MOST READ ARTICLES
1
New Financial Audit Rule Increases Requirements for Plan Sponsors
2
2021 Recordkeeping Survey
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TRIVIAL PURSUITS: What do the M’s stand for in M&Ms?
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DOL Proposes New Rule on ESG Investing in Retirement Plans
5
New Complaint Targets TIAA’s Managed Account Rollovers
Pension Funding Dips in May
The decrease in funding was due in part to relatively flat equity markets, according to both Mercer and Wilshire.Read more >
Products, Deals and People
Retirement Industry People Moves
NYLIM appoints Chief Operating Officer; VALIC names Healthcare and Government Markets business leader, and more.Read more >
Economic Events

The unemployment rate declined by 0.3 percentage point to 4.7% in May, and nonfarm payroll employment changed little (+38,000), according to the Bureau of Labor Statistics. Employment increased in health care. Mining continued to lose jobs, and employment in information services decreased due to a strike.

THE ECONOMIC WEEK AHEAD: Thursday, the Labor Department will issue its initial claims report and the Census Bureau will report about wholesale inventories for April.
Market Mirror

Stocks fell and bond prices rose Friday after the government reported a sharp slowdown in hiring last month. The Dow decreased 31.50 points (0.18%) to 17,807.06, the NASDAQ closed 28.85 points (0.58%) lower at 4,942.52, and the S&P 500 was down 6.16 points (0.29%) at 2,099.10. The Russell 2000 lost 6.45 points (0.55%) to finish at 1,164.13, and the Wilshire 5000 fell 66.56 points (0.31%) to 21,742.32.

On the NYSE, 3.1 billion shares traded, with a slight lead for advancers. On the NASDAQ, 2.7 billion shares changed hands, with 1.7 declining issues for every advancing issue.

The price of the 10-year Treasury note increased 28/32, bringing its yield down to 1.704%. The price of the 30-year Treasury bond climbed 1 15/32, decreasing its yield to 2.513%.

WEEK’S WORTH: For the week ending June 3, the Dow was down 0.37%, the NASDAQ increased 0.18%, and the S&P 500 was up 0.04%. The Russell 2000 climbed 1.19%, and the Wilshire 5000 finished 0.19% higher.
From the Magazine
ESG Trends
To understand how crucial environmental sustainable governance (ESG) is in this complex world, recall the Volkswagen scandal of last September. The company cheated on its diesel engine emission test results—not only fouling the air but crushing Volkswagen’s reputation, and wiping a third off the VW share price. Whatever name it goes by, investing according to socially and environmentally aware principles has gathered considerable momentum among global institutions.Read more >
Small Talk
ON THIS DATE: In 1833, Andrew Jackson became the first U.S. president to ride in a train. It was a B&O passenger train. In 1844, the Young Men’s Christian Association (YMCA) was founded in London. In 1882, the first electric iron was patented by H.W. Seely. In 1925, Chrysler Corporation was founded by Walter Percy Chrysler. In 1932, in the U.S., the first federal tax on gasoline went into effect. It was a penny per gallon. In 1933, in Camden, New Jersey, the first drive-in movie theater opened. In 1934, U.S. President Franklin Roosevelt signed the Securities Exchange Act, which established the Securities and Exchange Commission (SEC). In 1942, Japanese forces retreated in the World War II Battle of Midway. The battle had begun on June 4. In 1944, the D-Day invasion of Europe took place on the beaches of Normandy, France; 400,000 Allied American, British and Canadian troops were involved. In 1946, the Basketball Association of America was formed in New York City. In 1968, U.S. Senator Robert F. Kennedy died at 1:44am in Los Angeles after being shot by Sirhan Sirhan. Kennedy was shot the evening before while campaigning for the Democratic presidential nomination. In 1971, “The Ed Sullivan Show” aired for the last time. It was canceled after 23 years on the air. In 1978, “20/20” debuted on ABC.
SURVEY SAYS RESPONSES:        Each year, we ask NewsDash readers to share what is on their summer reading list. But, this year, I also asked how often they read for recreational purposes and whether they have more time for reading in the summer. Forty-two percent of responding readers indicated they read for recreational purposes (not work-related) every day, and 36% said they do so several days per week. While one might assume that people have more time for reading in the summer due to vacations and less school-related activities for children, 82% of responding readers said they do not have more time for reading in the summer. As for what’s on readers’ summer reading lists, there were not a lot of repeats as in years past, but Redemption Road by J. Hart and the Jack Reacher novels by Lee Childs were repeated. David Baldacci and James Patterson were authors mentioned several times. Others listed genres, such as mystery or history. In reader comments about recreational reading, many said it is a good break and stress reliever, with some saying it is an essential part of their lives. Others mentioned they’d rather golf, garden or do other activities. A couple of respondents anticipate having more time to read because they are retiring. Editor’s Choice goes to the one who said: “Yes, share the list, please. I bought a new Lazy-Boy as a retirement present and can’t wait to hunker down and turn the pages. Yeah, actual finger-lick flip pages. How sweet the sound; flip, nap, flip, nap…..fridge.” Thank you to everyone who responded to the survey!Read more >
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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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