| | Benefits & Administration | | Letitia James, New York City’s public advocate,
is readying legislation that would create a board tasked with studying and
establishing a centrally pooled pension fund for the city’s private sector. “Too
many people have too little savings, and no access to quality retirement
planning,” James said in a recent statement. Citing figures from a New School
study, James said the percentage of New York City workers participating in a
workplace-based retirement plan dropped by 17% between 2001 and 2011. The data also
found just 12% of New Yorkers in that same time frame had access to a defined
benefit (DB) plan.Read more > | | Retirement Savings Delays Add Up | | Postponing retirement plan salary deferrals by
five to 10 years can reduce total retirement income by nearly 25%, according to
research from the Insured Retirement Institute (IRI). A worker contributing 10%
of income annually to a retirement plan beginning at age 35, rather than age
30, will receive 11% less in annuitized retirement income. Over the course of a
25-year retirement, the reduced income adds up to $62,000.Read more > | | | Products, Deals & People | | The Legg Mason BW Dynamic Large Cap Value Fund
utilizes a dynamic shifting tool and a proprietary quantitative strategy. Available
in institutional shares, the fund’s broad objective is to provide long-term
capital appreciation by quantitatively investing in U.S. equities.Read more > | | White Paper Tackles Annuity Purchase Confusion | | Annuities can help manage defined benefit (DB)
plan risks, but retirement plan sponsors should contemplate a few common
misperceptions, The Principal Financial says. Pension risk management is an
ongoing process, and in an ever-changing environment, it can be a challenge for
plan sponsors to manage the risks of their DB plans. The Principal Financial
Group aims to clear up some of the confusion around annuity purchases and help
plan sponsors make informed decisions through discussion of common scenarios,
case studies, modeling and examples in a new paper, “What Can We Learn from Six
Common Annuity Purchase Misconceptions?”Read more > | | | Sponsored message from MetLife | De-Risking Actions for Defined Benefit Pension Plans
There are several actions plan sponsors can take to de-risk their plans. View our short video to see how these actions may help you.Read more > | | | Economic Events | | The U.S. Census Bureau announced that
the combined value of distributive trade sales and manufacturers’ shipments for
September, adjusted for seasonal and trading-day differences but not for price
changes, was estimated at $1,352.5 billion, virtually unchanged from August
2014, but up 4.1% from September 2013. Manufacturers’
and trade inventories, adjusted for seasonal variations but not for price
changes, were estimated at an end-of-month level of $1,756.1 billion, up 0.3%
from August and up 5.3% from September 2013.
Advance estimates of U.S. retail and
food services sales for October, adjusted for seasonal variation and holiday
and trading-day differences, but not for price changes, were $444.5 billion, an
increase of 0.3% from the previous month, and 4.1% above October 2013.
THE
ECONOMIC WEEK AHEAD: Tomorrow,
we’ll learn the producer price index (PPI) for October from the Bureau of Labor
Statistics. Wednesday, the Census
Bureau will report about housing starts for October. Thursday, the Labor Department will issue its initial claims report,
we’ll learn the consumer price index for October from the Bureau of Labor
Statistics, and the National Association of Realtors will report about existing
home sales for October.
| | | Market Mirror | | Friday, the
Dow slipped 18.05 points (0.10%) to 17,634.74, the NASDAQ ticked up 8.40 points
(0.18%) to 4,688.54, and the S&P 500 increased by 0.49 (0.02%) to 2,039.82.
The Russell decreased by 1.61 (0.14%) to 1,173.81, and the Wilshire 5000 closed
11.75 points (0.05%) higher at 21,467.77.
On the NYSE,
3.2 billion shares changed hands, with a slight lead for advancers. On the
NASDAQ, 2.7 billion shares traded, with a slight lead for decliners.
The yields
for the 10-year Treasury note and 30-year Treasury bond were 2.320% and 3.051%,
respectively.
WEEK’S
WORTH: For the week ending November 14, the Dow was up
0.35%, the NASDAQ climbed 1.21%, and the S&P 500 closed 0.39% higher. The
Russell 2000 ticked up 0.04%, and the Wilshire 5000 gained 0.40%.
| | | Compliance | | Form 5500 Precision Is All in the Details | | Sometimes, Form 5500 errors can come down to
something as simple as a single number. Here are some goofs for retirement plan
sponsors to keep an eye out for. “It’s a good idea to review,” Mike Webb, vice
president of Cammack Retirement Group, tells PLANSPONSOR. The Form 5500 is
complicated, and requires a full audit, which is also complicated. Webb recommends
plans work with a trusted adviser to review the document before submitting it.
Sometimes the plan sponsor picks up an irregularity; sometimes the auditor
does. Webb says it is possible for either to find a problem area, and mistakes
are common. “Fifty percent of the time, I find a mistake,” he says.Read more > | | | Investing | | Investors Continue Search for Fixed-Income Yield | | Finding yield remains a top consideration for
investors choosing fixed-income investments, according to a new survey from
Franklin Templeton Investments. While the search for yield is top of mind for
most U.S. fixed-income investors, Franklin Templeton’s research shows three in
four (74%) are concerned about how rising rates will impact their portfolio in
the months or years ahead. The findings are from “Franklin Templeton Fixed
Income Pulse.”Read more > | | | PLANSPONSOR UK | | More than half of financial advisers (61%) claim
to have seen an increase in the number of people aged 55+ seeking advice, since
the pension reforms were announced in the March Budget, according to Aviva.Read more > | | | Small Talk | | ON THIS DATE: In
1777, Congress submitted the
Articles of Confederation to the states for ratification. In 1869, the Suez Canal, connecting the
Mediterranean and the Red seas, was inaugurated in an elaborate ceremony
attended by French Empress Eugénie, wife of Napoleon III. In 1962, Washington’s Dulles International
Airport was dedicated by U.S. President Kennedy. In 2003, the actor and former bodybuilder Arnold Schwarzenegger was
sworn in as the 38th governor of California. | | SURVEY SAYS: Workplace Holiday Practices | | Last week, I asked NewsDash readers about
holiday practices at their workplace. When asked what time off their company
offers for Thanksgiving, 25.9% said Thanksgiving Day only, 51.7% replied
Thanksgiving Day and the Friday after and 1.7% chose “none.” Thanksgiving meals
are hosted by 10.3% of responding readers’ companies. For Christmas, 1.7% of
respondents said their companies offer no time off, 24.1% get Christmas Day off
only and 12.1% get Christmas Day and the day after. Nearly 21% are offered time
off Christmas Eve and Christmas Day,
5.2% get Christmas Eve, Christmas and the day after, and 3.4% of lucky readers
are off the whole week of Christmas. More than 27% of respondents’ companies
host a meal as a Christmas celebration, 10.3% host a party, and 19% host a meal
and a party. More than 34% said there is a gift exchange among employees at
their workplace for the holidays, and 32.8% said their companies give a gift or
bonus to employees for the holidays? In verbatim responses, Editor’s Choice
goes to the reader who said: “As part of our team building, we take a few hours
the day before Thanksgiving to assist the homeless shelter in serving a
Thanksgiving dinner and reflect on how truly blessed we are. It is more worthy
to give and help the less fortunate than to receive or give a gift that you may
never be used.” 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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