Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
May 6th, 2019

Form 5500 Basics: What Sponsors Need to Know

The purpose of Form 5500 is to obtain information regarding plan design and basic plan sponsor information, and the regulatory penalties for failures in filing the form can be severe. Read more >
Benefits & Administration
Plan Design Progression Leading to Higher Retirement Savings
Participation rates were nearly 96% higher for plans—a difference of 40 percentage points—with auto enrollment; the usage of auto escalation was nearly five times higher in plans that employ opt-out options rather than opt-in, and employer match rates increased in 2018, T. Rowe Price found. Read more >
GAO Reviews Retirement Savings Leakage
The GAO interviewed retirement plan stakeholders and found several ways to stem the tide of funds leaving 401(k)s and IRAs. Read more >
MOST READ ARTICLES
1
J.P. Morgan Agrees to Settle Stable Value Funds Suit
2
SECURE Act Passes House, Bringing Calls for Senate Collaboration
3
Individuals, Employers and Government All Play a Part in Retirement Readiness
4
Participant Loans: A Fiduciary Storm Brewing?
5
What to Know About Financial Audits Filed with Form 5500s
Sponsored message from Empower Retirement
Boosting the effectiveness of retirement plan communications
Cutting back on jargon and delivering communications where participants want them can help put employees on the right track. Read more >
Products, Deals and People
SPARK Creates Definitions for Cyber Security Terms
“These definitions provide a level platform for vendor evaluation as it relates to cyber security breach and fraud,” says Rasch Cousineau, a senior consultant with the Hyas Group. Read more >
Retirement Industry People Moves
Willis Towers Watson adds DC Delegated Solutions leader; HSA Bank appoints relationship management SVP; MetLife Investment Management appoints head of Institutional Client Group; and more. Read more >
Economic Events

Wholesale inventories for March, adjusted for seasonal variations but not for price changes, were estimated at an end-of-month level of $668.2 billion, virtually unchanged from February, and up 6.4% from March 2018, the Census Bureau reported. The January to February percentage change was revised from up 0.2% to up 0.1%.

 

Retail inventories for March, adjusted for seasonal variations but not for price changes, were estimated at an end-of-month level of $657.3 billion, down 0.3% from February, and up 4.4% from March 2018.The January to February percentage change was revised from up 0.3% to up 0.2%.

 

Total nonfarm payroll employment increased by 263,000 in April, and the unemployment rate declined to 3.6%, according to the Bureau of Labor Statistics. Notable job gains occurred in professional and business services, construction, health care, and social assistance.

 

THE ECONOMIC WEEK AHEAD: Thursday, the Department of Labor will issue its initial claims report, and the Bureau of Labor Statistics (BLS) will reveal the producer price index for April. Friday, the BLS will reveal the consumer price index for April.

Market Mirror

Friday, the Dow was up 197.16 points (0.75%) at 26,504.95, the NASDAQ gained 127.22 points (1.58%) to finish at 8,164.00, and the S&P 500 increased 28.12 points (0.96%) to 2,945.64. The Russell 2000 climbed 31.37 points (1.98%) to 1,614.02, and the Wilshire 5000 closed 333.26 points (1.11%) higher at 30,460.77.

 

The price of the 10-year Treasury note was up 5/32, decreasing its yield to 2.524%. The price of the 30-year Treasury bond increased 7/32, bringing its yield down to 2.920%.

 

WEEK’S WORTH: For the week ending May 3, the Dow was down 0.14%, the NASDAQ increased 0.22%, and the S&P 500 was up 0.20%. The Russell 2000 gained 1.39%, and the Wilshire 5000 finished 0.30% higher.

Compliance
DOL Says Members of AHPs Can Keep Coverage for Now
After a federal district court overturned final regulations on association health plans (AHPs) from the Department of Labor (DOL), the agency says “employers participating in insured AHPs can generally maintain that coverage through the end of the plan year or, if later, the contract term.” Read more >
Industry Voices
Barry’s Pickings: DOL’s Fiduciary Theory: Fundamentally Incoherent
Michael Barry, president of O3 Plan Advisory Services LLC, discusses the inconsistencies in the Department of Labor’s (DOL)’s theory of retirement plan sponsor fiduciary responsibility, especially with respect to participant choice, and the consequences of its failure to provide clear guidance. Read more >
Small Talk

ON THIS DATE: In 1851, the mechanical refrigerator was patented by Dr. John Gorrie. In 1861, Arkansas became the ninth state to secede from the Union. In 1877, Chief Crazy Horse surrendered to U.S. troops in Nebraska. In 1889, the Universal Exposition opened in Paris, France, marking the dedication of the Eiffel Tower. Also at the exposition was the first automobile in Paris, the Mercedes-Benz. In 1937, the German airship Hindenburg crashed and burned in Lakehurst, New Jersey. Thirty-six people (of the 97 on board) were killed. In 1957, Senator John Fitzgerald Kennedy was awarded the Pulitzer Prize for his book “Profiles in Courage.” In 1960, President Dwight Eisenhower signed the Civil Rights Act of 1960. In 1994, the Channel Tunnel officially opened. The tunnel under the English Channel links England and France.

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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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