Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
March 27th, 2018
Compliance
Gannett Faces ERISA Stock Drop Complaint
The lawsuit alleges that Gannett Co., its benefit plans committee and other fiduciaries’ decision to concentrate plan investments in Gannett’s parent company common stock was a breach of their fiduciary duties under ERISA and caused a loss of approximately $135 million. Read more >
Appellate Court Affirms Dismissal of CVS Stable Value Fund Suit
The 1st U.S. Circuit Court of Appeals has affirmed dismissal of a lawsuit that alleged the Employee Stock Ownership Plan (ESOP) of CVS Health Corporation and Affiliated Companies invested in a stable value fund that was “excessively concentrated in investments with ultra-short durations, and maintained excessive liquidity far beyond any reasonable need for it.” The appellate court found no evidence that the CVS retirement plan’s stable value fund departed radically from the investment standards and logic of stable value funds. Read more >
SBCA Finds Potential Problem With Reintroduced RESA Legislation
Section 501 of the Retirement Enhancement and Savings Act would give non-spouse beneficiaries five years to take distributions of inherited accounts over $450,000 before they would be taxed. Read more >
Industry Voices
Options for Unaffordable Pensions: Out-of-Bankruptcy Distress Terminations
A distress termination may be a viable option for financially challenged employers that need pension funding relief but want to avoid bankruptcy, according to attorneys with Groom Law Group, Chartered. Read more >
MOST READ ARTICLES
1
House Committee Advances Bill to Establish Union Pension Lifeline Program
2
The Senate Math That Could Block SECURE Act
3
Adidas Sued Over Excessive Fees for 401(k) Participants
4
Open MEPs Not for Every Plan Sponsor
5
(b)lines Ask the Experts – Proper Delivery Method for SPDs
Market Mirror

Yesterday, the Dow gained 669.40 points (2.84%) to finish at 24,202.60, the NASDAQ closed 227.88 points (3.26%) higher at 7,220.54, and the S&P 500 increased 70.29 points (2.72%) to 2,658.55. The Russell 2000 was up 33.63 points (2.23%) at 1,543.71, and the Wilshire 5000 climbed 692.94 points (2.57%) to 27,605.57.

 

The price of the 10-year Treasury note was down 7/32, increasing its yield to 2.841%. The price of the 30-year Treasury bond decreased 12/32, bringing its yield up to 3.082%.

Investing
Pre-Retirees Seemingly Unaware of What Market Volatility Can Do to Savings
The MassMutual Retirement Savings Risk Study found 94% of pre-retirees and 92% of retirees “strongly agree” or “somewhat agree” that it is important to take steps to avoid major stock market losses right before retirement. One in two pre-retirees (49%) and one in three retirees (32%) are apprehensive about taking too much investment risk, the study finds. However, the study finds that many retirees and pre-retirees are more focused on growing rather than preserving their assets:  59% of pre-retirees and 32% of retirees describe their primary investment strategy as focused on either “aggressive growth” or “moderate growth.” Read more >
Small Talk

ON THIS DATE: In 1794, Congress authorized the creation of the U.S. Navy. In 1866, U.S. President Andrew Johnson vetoed the civil rights bill, which later became the 14th amendment. In 1912, the first cherry blossom trees were planted in Washington, D.C. The trees were a gift from Japan. In 1952, the U.S. Eighth Army reached the 38th parallel in Korea, the original dividing line between the two Koreas. In 1976, Washington, D.C., opened its subway system. In 1985, Billy Dee Williams received a star on the Hollywood Walk of Fame.

TRIVIAL PURSUITS: Many of us associate coffee with countries in South America, but it took a long journey for the drink to get there. Where was coffee first discovered? Read more >
Share the 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

Advertising: Paul Zampitella paul.zampitella@strategic-i.com

Subscribe to NEWSDash, click here .

To unsubscribe, click here.

BrightScope / CIO / FWW / Investor Economics / LiquidMetrix / Market Metrics / Matrix Solutions / PLANADVISER / Plan For Life / PLANSPONSOR / Simfund