Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
May 13th, 2019
Compliance
HSA Savings for Seniors Who Want to Work Longer
Frustration continues for working individuals 65 and older who are required to stop HSA contributions once enrolled in Medicare, but legislation is pending to fix that. Read more >
PBGC Proposes New Coverage Determination Forms
Plan sponsors may submit a determination of coverage request for four common types of DB plans. Read more >
Lawsuit Over KRS Hedge Fund Investments Being Pushed and Pulled in Court
A Kentucky appeals court reversed a lower court’s ruling that the beneficiaries of the Kentucky Retirement System (KRS) had standing to sue over risky hedge fund investments; but the beneficiaries have now appealed to the State Supreme Court. Read more >
MOST READ ARTICLES
1
J.P. Morgan Agrees to Settle Stable Value Funds Suit
2
Congress Urged to Act Soon on Union Pension Funding Crisis
3
Individuals, Employers and Government All Play a Part in Retirement Readiness
4
The Majority of Retirees Spend Below Their Income, a New Study Finds
5
Communicating Retirement Benefits to Five Generations of Workers
Products, Deals and People
Retirement Industry People Moves
Morgan Stanley Makes Series of New Hires; Morneau Shepell Acquires Mercer DB Administration Business; PIMCO Promotes Former Managing Director to Retirement Head; and more. Read more >
Economic Events

In April, the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3%, seasonally adjusted (SA); rising 2% over the year, not seasonally adjusted (NSA), the Bureau of Labor Statistics reports. The index for all items less food and energy rose 0.1% in April, SA; up 2.1% over the year, NSA.

 

Real average hourly earnings decreased 0.1% over the month in April, SA. Average hourly earnings increased 0.2% and CPI-U increased 0.3%. Real average weekly earnings decreased 0.4% over the month.

 

THE ECONOMIC WEEK AHEAD: Wednesday, the Census Bureau will report about retail sales for April and business trade for March. Thursday, the Labor Department will release its initial claims report, and the Census Bureau will report about housing starts for April.

Market Mirror

Friday, the Dow climbed 114.01 points (0.44%) to 25,942.37, the NASDAQ increased 6.35 points (0.08%) to 7,916.94, and the S&P 500 closed 10.68 points (0.37%) higher at 2,881.40. The Russell 2000 was up 2.94 points (0.19%) at 1,572.99, and the Wilshire 5000 gained 107.21 points (0.36%) to finish at 29,801.61.

 

The price of the 10-year Treasury note decreased 7/32, bringing its yield up to 2.472%. The price of the 30-year Treasury bond was down 2/32, increasing its yield to 2.889%.

 

WEEK’S WORTH: For the week ending May 10, the Dow was down 2.12%, the NASDAQ fell 3.03%, and the S&P 500 finished 2.18% lower. The Russell 2000 lost 2.54%, and the Wilshire 5000 decreased 2.16%.

Investing
State and Local Pension Investments Have Become Riskier
This may expose participating governments to higher funding risks, FitchRatings says. Read more >
Small Talk

ON THIS DATE: In 1607, some 100 English colonists arrived along the west bank of the James River in Virginia to found Jamestown, the first permanent English settlement in North America. In 1846, Congress overwhelmingly voted in favor of President James K. Polk’s request to declare war on Mexico in a dispute over Texas. In 1864, the Battle of Resaca commenced as Union General Sherman fought towards Atlanta during the American Civil War. In 1865, the last land engagement of the American Civil War was fought at the Battle of Palmito Ranch in far south Texas, more than a month after Gen. Lee’s surrender at Appomattox, Virginia. In 1911, the New York Giants set a major league baseball record when 10 runners crossed home plate before the first out of the game against St. Louis. In 1954, President Dwight D. Eisenhower signed into law the St. Lawrence Seaway Development Act. In 1981, near the start of his weekly general audience in Rome’s St. Peter’s Square, Pope John Paul II was shot and seriously wounded while passing through the square in an open car. In 2003, the U.S. government unveiled a newly designed version of the $20 bill. It was the first to be colorized in an effort to stop counterfeiters.

SURVEY SAYS RESPONSES: Last week, I asked NewsDash readers, “Does office noise affect your concentration and productivity, and what kind of noise is most distracting?” More than three-quarters (76.1%) of responding readers indicated office noise affects their concentration and productivity in a negative way, while 3% reported it affects their concentration and productivity in a positive way. Nearly 12% said noise does not affect their work, and 9% reported not having a noisy office environment. Asked which kind of office noise is the MOST distracting, nearly half (48.5%) selected, “Employee conversations with each other,” and one-quarter (25.8%) chose “Employee phone conversations.” Among those who chose “other” was an employee who works from home who listed “barking dogs and passing trucks.” Those who chose to leave comments expanded on the disruption caused by phone conversations by calling out those who use the speaker phone and talk loudly because of it. Some said headphones help with office noise while others said people play music on their headphones so loudly that it is distracting. A couple of respondents said their office uses white noise machines to help with distractions. It seems quite a few people actually need noise to work. So many people disparaged the open work environment, and I agree. Editor’s Choice goes to the reader who said: “Open office is the worst cost saving idea that management has ever clung to under the guise of improving employee collaboration.” Thanks to everyone who participated in the survey! Read more >
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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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