Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
May 29th, 2018
Webcast Event
Do you want to reduce the risks that come with plan management and improve participants’ outcomes? Then, join us for a webcast on June 7, “Retirement Plan Trends: What keeps Plan Sponsors up at night?” Read more >
Compliance
Court Orders Independent Plan Fiduciary for Cambridge Technology Group
The Department of Labor (DOL) found the company’s president and CEO did not process any distribution requests submitted by 401(k) plan participants, among other Employee Retirement Income Security Act (ERISA) violations. Read more >
As PBGC Director Works on Pension Crisis, Senators Question Trump’s Decision to Oust Him
Senators have sent a letter to President Donald Trump demanding an explanation of his sudden decision to replace Tom Reeder as Director of the Pension Benefit Guaranty Corporation (PBGC). The president has nominated Gordon Hartogensis—who, the senators say, seems to have little to no prior experience relevant to the pension system and the work of the PBGC—to replace Reeder. Reeder recently told the Joint Select Committee on Solvency of Multiemployer Pension Plans that insolvency of the PBGC multiemployer program could result in participants in failed multiemployer plans receiving a very small fraction—an eighth or less, on average—of the current benefit guarantee level. Read more >
MOST READ ARTICLES
1
IRS Announces 2019 HSA Contribution Limits
2
4% Rule Not a Reliable Retirement Income Withdrawal Strategy for All People
3
Lawsuit Argues MetLife Pension Calculations Use Outdated Mortality Table
4
401(k) Plan Sponsors Enhancing Plan Design
5
Duke University 403(b) Plan Lawsuits Reportedly Settled
Products, Deals and People
Retirement Industry People Moves
Certified Pension Professional Joins Transamerica’s Client Management Department; BlueBay Hires Addition to Developed Markets Team; VP of Retirement Services Joins USI Consulting; and more. Read more >
Economic Events

New orders for manufactured durable goods in April decreased $4.2 billion or 1.7% to $248.5 billion, the U.S. Census Bureau announced. This decrease, down following two consecutive monthly increases, followed a 2.7% March increase. Excluding transportation, new orders increased 0.9%. Excluding defense, new orders decreased 1.9%. Transportation equipment, also down following two consecutive monthly increases, drove the decrease, falling $5.6 billion or 6.1% to $87.1 billion.

 

THE ECONOMIC WEEK AHEAD: Today, the Conference Board will release its Consumer Confidence Index for May. Thursday, the Labor Department will issue its initial claims report. Friday, the Bureau of Labor Statistics will reveal the unemployment rate for May, and the Census Bureau will report about construction spending for April.

Market Mirror

Friday, the Dow closed 58.67 points (0.24%) lower at 24,753.09, the NASDAQ increased 9.43 points (0.13%) to 7,433.85, and the S&P 500 decreased 6.43 points (0.24%) to 2,721.33. The Russell 2000 was down 1.29 points (0.08%) at 1,626.93, and the Wilshire 5000 closed 55.61 points (0.20%) lower at 28,335.52.

 

The price of the 10-year Treasury note increased 14/32, bringing its yield down to 2.928%. The price of the 30-year Treasury bond climbed 21/32, decreasing its yield to 3.090%.

 

WEEK’S WORTH: For the week ending May 25, the Dow increased 0.15%, the NASDAQ climbed 1.08%, and the S&P 500 gained 0.31%. The Russell 2000 was up 0.02%, and the Wilshire 5000 finished 0.24% higher.

Industry Voices
The Achilles Heel of All 401(k) Plans: The Payroll Interface
Managing risk factors for the interface between a plan sponsor’s payroll system and retirement plan recordkeeping system can avoid some very costly errors. Read more >
Investing
DOL’s ESG Investing Bulletin Raises Important Questions for Plan Fiduciaries
Given some of the strong language used to warn retirement plan fiduciaries against placing other interests ahead of the financial benefit of their participants, the latest DOL bulletin on the topic of environmental, social and governance (ESG) investing has created some confusion. Read more >
Small Talk

ON THIS DATE: In 1721, South Carolina was formally incorporated as a royal colony. In 1790, Rhode Island became the last of the original thirteen colonies to ratify the U.S. Constitution. In 1848, Wisconsin became the 30th state to join the United States. In 1916, the official flag of the president of the United States was adopted. In 1932, World War I veterans began arriving in Washington, D.C., to demand cash bonuses they were not scheduled to receive for another 13 years. In 1951, C.F. Blair became the first man to fly over the North Pole in single engine plane. In 1953, Edmund Hillary and Sherpa Tenzing Norgay became the first men to reach the top of Mount Everest. In 1962, Buck (John) O’Neil became the first black coach in major league baseball when he accepted the job with the Chicago Cubs. In 1986, Colonel Oliver North told National Security Advisor William McFarlane that profits from weapons sold to Iran were being diverted to the Contras. In 2001, in New York, four followers of Osama bin Laden were convicted of a global conspiracy to murder Americans. The crimes included the 1998 bombings of two U.S. embassies in Africa that killed 224 people. In 2015, the Obama adminstration removed Cuba from the U.S. terrorism blacklist. The two countries had severed diplomatic relations in January of 1961.

TRIVIAL PURSUITS: Ants are such pests, particularly during the summer, so I looked back at an old TRIVIAL PURSUITS to see where I would have to live to not be bothered by ants. 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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