May 17th, 2021 Insight on Plan Design & Investment Strategy Every Weekday Compliance IRS Clarifies Implementation of Partial Plan Termination Relief The agency says the relief applies to each plan year which falls inside the relief period, and provisions of the law are not limited to staff reductions caused by the COVID-19 pandemic. Products Fiduciary Scorecard From Pentegra Can Help Measure Plan Success The firm says it gives sponsors a way to document the fiduciary oversight process and provides assurances to senior management and boards that the plan is being managed properly. Most Read Benefits Rising Health Care Costs Should Set Off Alarm Bells for Plan Sponsors, Study Shows 2023 Plan Sponsor of the Year Data and Research What Will Retirement Plan Access, and Employer Benefits Look Like in 2026? Economic Events The combined value of distributive trade sales and manufacturers’ shipments for March, adjusted for seasonal and trading day differences but not for price changes, was estimated at $1,638.2 billion, up 5.7% from February and up 18.5% from March 2020, the Census Bureau announced. Advance estimates of U.S. retail and food services sales for April, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $619.9 billion, virtually unchanged from the previous month, and 51.2% above April 2020. Total sales for the February through April period were up 27.1% from the same period a year ago. Retail trade sales were down 0.3% from March, but up 46.1% from last year. Clothing and clothing accessories stores were up 726.8% from April 2020, while food services and drinking places were up 116.8% from last year. Tomorrow, the Census Bureau will report about housing starts for April. Thursday, the Labor Department will issue its initial claims report, and Freddie Mac will reveal mortgage rate changes. Friday, the National Association of Realtors will report about existing home sales in April. Market Mirror Friday, the Dow gained 360.68 points (1.06%) to finish at 34,382.13, the Nasdaq closed 304.99 points (2.32%) higher at 13,429.98, and the S&P 500 was up 61.35 points (1.49%) at 4,173.85. The Russell 2000 increased 89.49 points (4.19%) to 2,224.63, and the Wilshire 5000 climbed 759.56 points (1.78%) to 43,415.84. The price of the 10-year Treasury note was up 3/32, decreasing its yield to 1.628%. The price of the 30-year Treasury bond increased 13/32, bringing its yield down to 2.347%. For the week ending May 14, the Dow was down 1.14%, the Nasdaq fell 2.34%, and the S&P 500 decreased 1.39%. The Russell 2000 lost 2.07%, and the Wilshire 5000 finished 1.52% lower. Compliance SEC Settles Charges of Cybersecurity Failure Against GWFS Equities The broker/dealer has agreed to a $1.5 million fine, a censure and an order to cease and desist from future violations. ERISA Lawsuit Questions Humana Plan Fees The lawsuit closely resembles numerous other ERISA excessive fee complaints filed in recent years. Deals and People Retirement Industry People Moves Principal adds portfolio manager to Global Asset Allocation team; Wagner Law Group adds partner who specializes in multiemployer plans; Voya purchases HSA TPA; and more. Small Talk ON THIS DATE: In 1792, the New York Stock Exchange was founded at 70 Wall Street by 24 brokers. In 1875, the first Kentucky Derby was run at Louisville. In 1946, President Harry Truman seized control of the nation’s railroads, delaying a threatened strike by engineers and trainmen. In 1954, the U.S. Supreme Court handed down a unanimous decision in Brown v. Board of Education of Topeka, ruling that racial segregation in public educational facilities is unconstitutional. In 1973, the Senate Watergate Committee began its hearings. In 1999, Alex Trebek received a star on the Hollywood Walk of Fame. In 2000, Thomas E. Blanton Jr. and David Luker surrendered to police in Birmingham, Alabama. The two former Ku Klux Klan members were arrested on charges from the bombing of a church in 1963 that killed four young black girls. In 2004, Marcia Kadish and Tanya McCloskey of Malden, Massachusetts, married at Cambridge City Hall in Massachusetts, becoming the first legally married same-gender partners in the United States. SURVEY SAYS RESPONSES: Last week, I asked NewsDash readers, “Do you have a defined benefit (DB) pension plan from a former or your current employer?” I also asked: “Do you believe all employees should be offered a pension plan?” More than six in 10 respondents reported that they have a DB pension plan from a former or their current employer? More than half (54%) indicated they believe all employees should be offered a pension plan. However, nearly one-third (32%) said they did not believe all employees should be offered a pension plan, and 14% said they don’t know. The majority of the readers who chose to leave comments agree that a pension plan offers a more secure retirement for participants. However, several point out the regulatory and cost factors that prohibit employers from offering one or make employers want to stop offering one. There were quite a few readers in support of DC plans, though, and several remarked that participants have to do more to save in DC plans while others noted that some participants can’t. Editor’s Choice goes to the reader who said: “Sometimes the cost of maintaining such a plan is so much higher that it is just easier to offer a DC plan. At least, they are offering something. I would rather that they offer a DC plan than no plan at all.” A big thank you to all who participated in the survey! Did someone forward you this newsletter? Sign up here to get NEWSDash directly in your mailbox!

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