| Webcast Event | You’ve read the recent headlines: Participants
aren’t prepared. Employers aren’t confident. The message is clear—retirement is
in trouble. But the path toward solving the problem isn’t well-defined. How can
plan sponsors assist employees who are unsure of their financial futures? They
can help participants reach their retirement goals by making sure the right
benefits are in their 401(k) plans. Plan sponsors have choices, and in this
webcast we will analyze three investment options and evaluate the merit of personalized
portfolios to help answer the question, “What’s the right choice to help
your employees retire?” Register now to join the discussion about this
important topic.Read more > | | Benefits & Administration | Employees Value Financial Education from Employers | Seventy-four percent of employees say they feel
financial wellness should be part of their employers’ overall wellness
programs. Retirement was ranked as the most important financial issue by
respondents to a survey from Four Seasons Financial Education, followed by
investments and budgeting and debt. However, only 12.1% said overall financial
matters such as budgeting, saving and debt was covered in their employers’
programs.Read more > | | Products, Deals & People | Mercer has appointed Kenneth Shimberg as U.S
Endowment & Foundations (E&F) Chief Investment Officer for outsourced
CIO services. Shimberg joins a dedicated team of not-for-profit professionals
and will serve as chair of the E&F Investment Committee, which develops
strategy and tactics for Mercer’s nonprofit client portfolios.Read more > | | Economic Events | The U.S. Census Bureau of the Department
of Commerce announced that construction spending during March was estimated at
a seasonally adjusted annual rate of $966.6 billion, 0.6% below the revised February
estimate of $972.9 billion. The March figure is 2.0% above the March 2014 estimate
of $947.3 billion. During the first three months of this year, construction
spending amounted to $206.7 billion, 3.2% above the $200.4 billion for the same
period in 2014. |
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THE
ECONOMIC WEEK AHEAD: Today,
the Census Bureau will report about factory orders for March. Thursday, the Labor Department will
issue its initial claims report. Friday,
the Bureau of Labor Statistics will reveal the unemployment rate for April, and
the Census Bureau will report about wholesale inventories for March. | | Market Mirror | Friday, the
Dow closed 183.54 points (1.03%) higher at 18,024.06, the NASDAQ climbed 63.97
points (1.29%) to 5,005.39, and the S&P 500 gained 22.10 points (1.06%) to
finish at 2,107.61. The Russell 2000 was up 7.98 points (0.65%) at 1,228.10,
and the Wilshire 5000 increased 213.69 points (0.97%) to 22,247.99.
On the NYSE,
3.2 billion shares changed hands, with 1.5 advancing issues for every declining
issue. On the NASDAQ, 2.8 billion shares traded, with a 1.4 to 1 ratio of
advancers to decliners.
The price of
the 10-year Treasury note decreased 21/32, bringing its yield up to 2.109%. The
price of the 30-year Treasury bond fell 1 17/32, increasing its yield to 2.820%.
WEEK’S
WORTH: For the week ending May 1, the Dow was down
0.31%, the NASDAQ lost 1.70%, and the S&P 500 decreased 0.48%. The Russell
2000 fell 3.11%, and the Wilshire 5000 finished 0.82% lower.
| | Compliance | Proposed Bill Would Repeal Health Plan ‘Cadillac’ Tax | Representative Joe Courtney (D-Connecticut)
unveiled legislation from the House Ways and Means Committee to repeal the
excise tax on high-cost health insurance plans scheduled to go into effect in
2018. The policy, sometimes referred to as the “Cadillac tax,” would apply a
40% tax to health insurance expenditures over $10,200 per person and $27,500
per family—it is one of the most controversial provisions of the Patient
Protection and Affordable Care Act (ACA).Read more > | | From the Magazine | An observation one can make from the 2014
PLANSPONSOR Defined Contribution (DC) Survey is that having an investment
committee at a defined contribution plan correlates with positive outcomes. Overall,
74% of plans surveyed have an investment committee, but when viewed by size,
only half (51%) the plans with fewer than 100 participants have an investment
committee, while adoption among all other plan sizes is both higher and more
uniform, ranging from 83% to 94%. This might be due to smaller plans having
less administrative oversight in general, or just fewer people overall involved
with the plan.Read more > | Insights: On Watch | Fiduciaries will do well to pay close attention
to the Tibble v. Edison International
case and its outcome. “Can
you think of anyone who has influenced the world of personal finance more in
the past 10 years than attorney Jerry Schlicter?” A personal finance columnist
asked me that on the day litigation over excessive fees in 401(k) plans had its
day of arguments in front of the Supreme Court justices. However, it was not
just personal finance that Schlicter shook up. Our retirement plan industry,
too, has been greatly affected by such lawsuits.Read more > | | Investing | Could Key Foundational Issues Slow Indexing Trend? | The fiduciary duty prescribed by the Employee
Retirement Income Security Act (ERISA) mandates close attention for fee issues,
so it’s no surprise low-cost index funds have grown in popularity among
retirement plan sponsors and advisers. Practitioners across the retirement plan
industry are likely familiar with the positive features of index funds after
years of increasing attention and use by institutional investors—generally
lower fees and better transparency—but at least one advisory firm is urging
investors to reconsider the wisdom of relying entirely on indexed products and
portfolios.Read more > | | Small Talk | ON THIS DATE: In
1715, a French manufacturer debuted
the first folding umbrella. In 1776,
Rhode Island declared its freedom from England two months before the
Declaration of Independence was adopted. In 1865, Abraham Lincoln was laid to rest in his hometown of
Springfield, Illinois. In 1965, San
Francisco Giants outfielder Willie Mays hit his 512th career home run to break
Mel Ott’s National League record for home runs. In 1970, in Kent, Ohio, 28 National Guardsmen fired their weapons at a
group of anti-war demonstrators on the Kent State University campus, killing
four students, wounding eight, and permanently paralyzing another. | SURVEY SAYS: Changing Workplace Demographics | Last week, I asked NewsDash readers, have you
seen a change in the demographics of employees at your workplace? Generally,
more respondents have seen an increase in younger employees and in female
employees in their workplace in the last five years. Most respondents (54.3%)
said they do not think an aging workforce and tendency to delay retirement has
kept younger workers from finding positions in their desired careers. But, more
than one-third (37.1%) said they do think so. Respondents who chose to leave
comments about the changing demographics of the workforce are noticing an aging
workforce—some say they ARE the aging workforce: “Unfortunately, I’m seeing the
aging workforce when I look in the mirror.” A couple of younger respondents
weighed in about how the aging workforce is not affecting their careers, and
one told of trouble older workers are having finishing out their careers in a
desirable job. Editor’s Choice goes
to the reader who said: “Guess I pay more attention to birthdates and darn! I
have a lawnmower older than some employees (in some cases it works better,
too).” A big thank you to all who participated in our survey!Read more > | Share the good news with a friend! Pass the Dash along – and tell your
friends/associates they can sign up for their own copy.Read more > | News from PLANSPONSOR.com
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