Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
November 10th, 2015
Benefits & Administration
Retired Americans Need More Savings
Although the total percentage of adults surveyed by the Robert Morris University Polling Institute who say they are “very” or “somewhat” concerned about their financial security upon retirement has decreased since February, the percentage saying they are “very” concerned increased from 37.6% to 42.3%. Among the retired survey respondents, just 20% say they have saved enough.Read more >
SIFMA Speaks Out Against State-Run Retirement Plans
The Securities Industry and Financial Markets Association (SIFMA) says it is committed to increasing retirement plan coverage for Americans; however, the creation of a state-run retirement plan for private-sector employees is not the most effective way to do so. The group says the private sector already offers a variety of retirement savings options, including fairly priced 401(k) plans, 403(b) plans, 401(a) plans, 457(b) plans, SIMPLE IRAs, SEP IRAs, and traditional IRAs. In a position statement, SIFMA outlined problems it sees with the creation of state-run plans.Read more >
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Products, Deals and People
Transamerica Unveils 401(k) for Small Employers
The newly released Transamerica FastTrack Retirement Plan seeks to deliver down market the participant support services more commonly available for large and mega-sized plans. Transamerica says the base of the FastTrack program is the delivery of clear savings strategies and personalized online progress reports for defined contribution (DC) retirement plan participants. According to the firm, employers can take advantage of the new retirement plan program starting with a commitment of $50,000 in first-year deposits or plan assets.Read more >
Market Mirror

U.S. stock indices ended lower Monday as increased odds of a Federal Reserve rate hike in December, following a surprisingly strong jobs report last week, weighed on investors’ sentiment, according to MarketWatch. The Dow decreased 179.85 points (1.00%) to 17,730.48, the NASDAQ closed 51.82 points (1.01%) lower at 5,095.30, and the S&P 500 was down 19.45 points (0.93%) at 2,079.75. The Russell 2000 fell 15.32 points (1.28%) to 1,184.43, and the Wilshire 5000 lost 220.20 points (1.01%) to finish at 21,645.04.

On the NYSE, 3.2 billion shares traded, with declining issues outnumbering advancing issues nearly 4 to 1. On the NASDAQ, 2.7 billion shares changed hands, with a more than 2 to 1 lead for decliners.

The price of the 10-year Treasury note decreased 8/32, bringing its yield up to 2.352%. The price of the 30-year Treasury bond fell 20/32, increasing its yield to 3.119%.

Compliance
Duty to Monitor Fiduciaries Doesn’t Include Duty to Inform
A federal judge has found that several defendants named in an Employee Retirement Income Security Act (ERISA) lawsuit are not fiduciaries and has dismissed some claims that BP failed to monitor fiduciaries. The lawsuit had previously been dismissed based on the Moench presumption of prudence for fiduciaries of retirement plans in which company stock is offered as an investment. However, the 5th U.S. Circuit Court of Appeals revived the lawsuit after the Supreme Court ruling in Fifth Third Bank v. Dudenhoeffer that fiduciaries do not have a presumption of prudence.Read more >
Another Challenge to the DOL Fiduciary Rule
In the wake of approval of a House bill to delay the fiduciary proposal of the Department of Labor (DOL), four Republican and Democratic lawmakers outlined a series of seven legislative principles they believe must govern retirement advice and retirement advisers. The congressional effort is the latest shot against the DOL’s measure, and the stated bipartisan concern is that the rule will make it difficult for low- and middle-income families to access financial advice so they can adequately plan for retirement.Read more >
Investing
Institutional assets tracked by the Wilshire Trust Universe Comparison Service (TUCS) saw a median return of -4.53% in the third quarter—the worst quarterly performance in four years and the first back-to-back losing quarters since the quarter ending March 31, 2009. “Global equity returns weighed heavily on the median returns for all plan types in the third quarter,” Robert J. Waid, managing director at Wilshire Associates, says.Read more >
Small Talk
ON THIS DATE: In 1775, the U.S. Marines were organized under authority of the Continental Congress. Although, the Marines went out of existence after the end of the Revolutionary War in April of 1783, and were formally re-established on July 11, 1798, November 10 is observed as the birth date of the United States Marine Corps. In 1919, the American Legion held its first national convention, in Minneapolis, Minnesota. In 1951, direct-dial, coast-to-coast telephone service began when Mayor M. Leslie Denning of Englewood, New Jersey, called his counterpart in Alameda, California. In 1954, the Iwo Jima Memorial was dedicated in Arlington, Virginia. In 1969, “Sesame Street” made its debut on PBS. In 1970, the Great Wall of China opened for tourism. In 1975, the Edmund Fitzgerald, an ore-hauling ship, and its crew of 29 vanished during a storm in Lake Superior. In 1982, in Washington, D.C., the Vietnam Veterans Memorial was opened to visitors. In 1993, the U.S. House of Representatives passed the Brady Bill, which called for a five-day waiting period for handgun purchases. In 1999, Ted Danson received a star on the Hollywood Walk of Fame. In 2004, Yusuf Islam (formerly known as Cat Stevens) was awarded the “Man for Peace” prize in Rome at the opening of a meeting of Nobel Peace Prize laureates.
TRIVIAL PURSUITS: The grandnephew of a well-known, former European ruler was responsible for establishing the Federal Bureau of Investigation (FBI) in the U.S. Who established the FBI, and who was his great uncle?Read more >
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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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