Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
May 20th, 2016
Benefits & Administration
Borrowing to Fund Is a De-Risking Strategy for DB Plans
The combination of increasing annual PBGC premiums and the low rate environment make borrowing to fund a very attractive potential opportunity for plan sponsors, says Rohit Mathur with Prudential Retirement.Read more >
DB Plan Sponsors Focusing Attention on Funding
The issue of funding pension plans has risen to the attention of companies’ leadership, according to a survey by CFO Research and Prudential Financial. Sixty-four percent of respondents report either that their companies have already increased contributions (15%) or that they are likely to do so within two years (49%).Read more >
MOST READ ARTICLES
Research
2021 Recordkeeping Survey

2021 Plan Sponsor of the Year
Data and Research
Most DB Plan Sponsors Seeking an Exit
2016 PLANSPONSOR Service Stars
2016 PLANSPONSOR Service Stars
In 2015, PLANSPONSOR introduced a new awards program: the PLANSPONSOR Service Stars. The awards recognize retirement plan account representatives and relationship managers who, in the words of their plan sponsor clients, have demonstrated truly exemplary service over the past year. This year, the award was expanded to include service teams as well as individuals.Read more >
Products, Deals and People
Investment Product and Service Launches
Russell to focus more on multi-asset solutions; Wilshire Consulting launches Wilshire ClimateLens; Hartford Funds to acquire strategic beta ETF provider.Read more >
Economic Events

In the week ending May 14, the advance figure for seasonally adjusted initial claims for unemployment insurance was 278,000, a decrease of 16,000 from the previous week’s unrevised level of 294,000, the Labor Department reported. The four-week moving average was 275,750, an increase of 7,500 from the previous week’s unrevised average of 268,250.

The average interest rate for a 30-year fixed-rate mortgage is 3.58%, up from 3.57% one week ago, according to Freddie Mac. The average interest rate for a 15-year fixed-rate mortgage is 2.81%, unchanged from one week ago.
Market Mirror

Thursday, the Dow closed 91.22 points (0.52%) lower at 17,435.40, the NASDAQ decreased 26.59 points (0.56%) lower at 4,712.53, and the S&P 500 was down 7.65 points (0.37%) at 2,039.98. The Russell 2000 lost 8.20 points (0.74%) to finish at 1,094.75, and the Wilshire 5000 fell 126.50 points (0.60%) to 21,003.82.

On the NYSE, 3.1 billion shares changed hands, and on the NASDAQ, 2.7 billion shares traded with declining issues outnumbering advancing issues more than 2 to 1 on both exchanges.

The price of the 10-year Treasury note was up 4/32, decreasing its yield to 1.843%. The price of the 30-year Treasury bond increased 17/32, bringing its yield down to 2.634%.
Investing
CalPERs Investment Office Continues to Cut Expenses
The California Public Employees’ Retirement System (CalPERS) reported that annual ongoing costs for its investment operations have declined by approximately $134 million for the five-fiscal-year period from 2010-15. This compares to last year’s report that annual ongoing costs for its investment operations declined by approximately $90 million for the five-year period from 2009 to 2014. CalPERS attributes the savings to several factors.Read more >
Small Talk

ON THIS DATE: In 1506, in Spain, Christopher Columbus died in poverty. In 1774, Britain’s Parliament passed the Coercive Acts to punish the American colonists for their increasingly anti-British behavior. In 1775, North Carolina became the first colony to declare its independence. This is the date that is on the Georgia state flag even though the date of this event has been questioned. In 1830, the fountain pen was patented by H.D. Hyde. In 1861, North Carolina became the eleventh state to secede from the Union. In 1861, during the American Civil War, the capital of the Confederacy was moved from Montgomery, Alabama, to Richmond, Virginia. In 1873, Levi Strauss began marketing blue jeans with copper rivets. In 1875, the International Bureau of Weights and Measures was established. In 1926, the U.S. Congress passed the Air Commerce Act, which gave the Department of Commerce the right to license pilots and planes. In 1927, Charles Lindbergh took off from New York to cross the Atlantic for Paris aboard his airplane the “Spirit of St. Louis.” The trip took 33 1/2 hours. In 1932, Amelia Earhart became the first woman to fly solo across the Atlantic Ocean. In 1969, U.S. and South Vietnamese forces captured Apbia Mountain, which was referred to as Hamburger Hill. In 1990, the Hubble Space Telescope sent back its first photographs.

 

And now it’s time for FRIDAY FILES!
Workers at the Mount Washington Observatory took time to “play” in the 100-plus miles-per-hour wind.Read more >
Do you notice anything unusual about this brick wall?Read more >
In Richmond, Virginia, a woman’s obituary posted in the Richmond Times-Dispatch starts, “Faced with the prospect of voting for either Donald Trump or Hillary Clinton, Mary Anne Noland of Richmond chose, instead, to pass into the eternal love of God.”Read more >

In Altoona, Pennsylvania, four volunteer firefighters have been suspended and police have charged them with making the false alarms. According to the Associated Press, the men are responsible for five false alarms. Their reason for making them: they enjoyed the thrill of riding in fire trucks.

In Denver, North Carolina, people should beware of the Lowe’s home improvement store’s garden center. According to the Associated Press, a spokeswoman for Lowe’s Companies Inc. said in an email that a customer was bitten in the outdoor lawn and garden center by a copperhead snake. Employees called 911 and searched for other snakes. No others were found, but a pest control company was called to check.

In Salem, Massachusetts, a man asked a female neighbor to help him retrieve the key he dropped down a trash chute in their apartment building. According to the local ABC News station, Cpt. Conrad Prosniewski of the Salem Police Department said the man first attempted to hold the woman by her ankles and lower her head-first into the chute. When that didn’t work, he tied a sheet around her and lowered her in. However, the sheet ripped and she fell into a dumpster, where the trash compactor came on and crushed her leg. Pronsiewski recommends calling building management rather than trying to obtain lost items down a trash chute by yourself.

In Palm Bay, Florida, police responded to a call about a potential burglary. A concerned worker called 911 after finding several ceiling tiles on the floor and papers strewn about the All Florida Properties office. Police told Florida Today that officers arrived and began going room to room to find out why the office was in such disarray. The found the culprit—a raccoon hiding behind a potted plant. They captured it with a catch pole and led it into a wooded area behind the building.

Have a wonderful weekend!
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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