Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
November 1st, 2018

Plan Sponsor of the Year Award Nominations

Time is running out to make nominations for our Plan Sponsor of the Year awards. The deadline is November 7. Read more >
Benefits & Administration
Study Highlights Newest Trends in Reducing Employer Health Benefit Costs
More midsize and large employers are foregoing the short-term savings offered by cost-shifting and turning to strategies addressing care delivery and health management, Mercer finds. Read more >
Companies With ESOPs Report Advantages for Business
The results of this year’s Economic Performance Survey (EPS) show that, once again, companies belonging to The ESOP Association have experienced positive corporate performance. Other than financial benefits, respondents reported company culture and employee productivity benefits. In addition, companies contributed far more to their ESOPs than the typical 401(k) match. Read more >
Compliance
Putnam Asks for Stay in Self-Dealing Case to Seek Supreme Court Input
Putnam Investments has asked, and the 1st U.S. Circuit Court of Appeals has approved, a stay in a case alleging that the investment firm engaged in self-dealing by including high-expense, underperforming proprietary funds in its own 401(k) plan. In its motion, Putnam asked the Appellate Court to stay the case pending the filing and disposition of a petition for a writ of certiorari to the United States Supreme Court. The Circuit courts are split on the issue of whether when a plaintiff shows a fiduciary’s breach of duty led to plan losses, the burden shifts to the fiduciary to prove that the loss was not caused by its breach or the burden is on the plaintiff to prove that the fiduciary’s imprudence resulted in the loss. Read more >
MOST READ ARTICLES
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IRS Announces 2019 HSA Contribution Limits
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IRS Proposes Amendments to Hardship Withdrawal Regulations
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Retirement Industry People Moves
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Crash Course on Social Security From AARP
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Analysis Shows Impact of Financial Wellness Programs on Retirement Readiness
Market Mirror

Wednesday, the Dow gained 241.12 points (0.97%) to finish at 25,115.76, the NASDAQ closed 144.25 points (2.01%) higher at 7,305.90, and the S&P 500 increased 29.11 points (1.09%) to 2,711.74. The Russell 2000 was up 4.78 points (0.32%) at 1,511.41, and the Wilshire 5000 climbed 311.25 points (1.12%) to 27,980.90.

 

The price of the 10-year Treasury note was down 7/32, increasing its yield to 3.148%. The price of the 30-year Treasury note decreased 17/32, bringing its yield up to 3.393%.

Sponsored message from TIAA
A new role for DC Plans: Income for life
A new approach to retirement savings can help your employees generate lifetime income. Read more >
Ask the Experts
Turning Salary Into Employer Contributions When Limits Are Met
“One of our employees, who consistently defers the maximum to both our 403(b) retirement plan and 457(b) deferred compensation plans, wants to contribute additional funds to the plan and proposed that we pay her $140,000 instead of $150,000 and make a $10,000 employer contribution to the 403(b). Can we do this?” Read more >
Investing
Institutional Investor Performance Gains Continue for Third Quarter of 2018
Corporate Employee Retirement Income Security Act (ERISA) plans, at 1.9%, trailed behind other institutional investors due to their allocation towards longer duration fixed income. Despite this lag, Northern Trust overall marks the performances as optimistic. Read more >
Enthusiastic ESG Investing Measured Among U.S. Institutions
Continuing a trend that began in 2012, criteria related to climate change and carbon emissions remained the most important environmental issue for U.S. institutional investors. Read more >
Labor Shortage Among Developed Market Headwinds
J.P. Morgan anticipates labor supply constraints in developed countries starting in the next decade; while global growth expectations are modestly good, the firm urges policymakers to consider the importance of immigration when it comes to fueling future growth. Read more >
Small Talk

ON THIS DATE: In 1512, Michelangelo’s paintings on the ceiling of the Sistine Chapel were first exhibited to the public. In 1765, the British Parliament enacted The Stamp Act in the American colonies. In 1800, President John Adams became the first president to live in the White House. In 1848, the first medical school for women, founded by Samuel Gregory, opened in Boston. The Boston Female Medical School later merged with Boston University School of Medicine. In 1864, the U.S. Post Office started selling money orders. The money orders provided a safe way to send payments by mail. In 1870, the U.S. Weather Bureau made its first meteorological observations using 24 locations that provided reports via telegraph. In 1879, Thomas Edison executed his first patent application for a high-resistance carbon filament (U.S. Pat. 223,898). In 1894, “Billboard Advertising” was published for the first time. In 1950, two Puerto Rican nationalists tried to assassinate President Harry Truman. One of the men was killed when they tried to force their way into Blair House in Washington, D.C. In 1952, the U.S. exploded the first hydrogen bomb on Eniwetok Atoll in the Marshall Islands. In 1968, the movie rating system of G, M, R, X went into effect. In 1994, the Amazon.com domain name was registered. In 1998, Iridium inaugurated the first handheld, global satellite phone and paging system.

SURVEY SAYS: In a SURVEY SAYS marking the 40th anniversary of the Employee Retirement Income Security Act (ERISA), the change to ERISA during the past 40 years that received the greatest percentage of votes for being the one that most helped participant retirement savings outcomes was the establishment of Section 401(k) qualified deferred compensation plans. Though the proposal for 401(k) plans wasn’t passed until 1980, this year marks the 40th anniversary of the introduction of these plans. This week, I’d like to know, do you think 401(k) plans are sufficient for employees to obtain retirement security? Also, what changes to 401(k) plan laws and regulations do you think have helped them be more effective at helping employees obtain retirement security? You may respond to this week’s survey by 6 p.m. Pacific time today. 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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