Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
November 26th, 2018
Benefits & Administration
What Can the Retirement Plan Industry Expect in 2019?
Sources say retirement plan sponsors will increase financial wellness efforts, and Congress is at the ready to work on significant retirement reform. Read more >
Younger Individuals Most Open to Annuities
Forty-two percent of consumers in a LIMRA Secure Retirement Institute study said they were open to the idea of annuities, and 61% say having enough money to last through retirement years is their single most important objective for their assets in retirement. LIMRA SRI points out that prior research shows retiree annuity owners feel more confident that they are more likely to afford their preferred retirement lifestyles–even if they live to age 90 or older–than retirees who do not own an annuity. Read more >
Disenrollment From HSA-Eligible Health Plans Increases Employer Health Benefit Costs
Disenrollment from health savings account (HSA)-eligible health plans, which includes a disproportionate number of individuals with health conditions, increases employer spending on health coverage by 2.5% to 3.2%, the Employee Benefit Research Institute (EBRI) found. There is evidence that individuals who disenrolled from HSA-eligible health plans were more likely to have certain health conditions than those who remained enrolled in HSA-eligible health plans. Read more >
Products, Deals and People
Retirement Industry People Moves
Newport Group acquires Kidder Benefit Consultants; Mercer closes acquisition of Summit Strategies Group; and Fiduciary Investment Advisors opens Wellesley office. Read more >
MOST READ ARTICLES
1
IRS Announces 2019 HSA Contribution Limits
2
4% Rule Not a Reliable Retirement Income Withdrawal Strategy for All People
3
Lawsuit Argues MetLife Pension Calculations Use Outdated Mortality Table
4
Financially Well Employees Buoy the Bottom Line
5
401(k) Plan Sponsors Enhancing Plan Design
Investment Product and Service Launches
Morningstar Managed Portfolios advisory service will now have allocations to the Morningstar Funds Trust, and DWS partners with Skyline AI for real estate investing. Read more >
Economic Events

New orders for manufactured durable goods in October decreased $11.5 billion or 4.4% to $248.5 billion, the U.S. Census Bureau announced. This decrease, down three of the last four months, followed a 0.1% September decrease. Excluding transportation, new orders increased 0.1%. Excluding defense, new orders decreased 1.2%. Transportation equipment, down following two consecutive monthly increases, drove the decrease, $11.7 billion or 12.2% to $84.7 billion.

 

In the week ending November 17, the advance figure for seasonally adjusted initial claims for unemployment insurance was 224,000, an increase of 3,000 from the previous week’s revised level of 221,000, the Labor Department reported. The four-week moving average was 218,500, an increase of 2,000 from the previous week’s revised average of 216,500.

 

Existing-home sales increased in October after six straight months of decreases, according to the National Association of Realtors. Three of four major U.S. regions saw gains in sales activity last month. Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 1.4% from September to a seasonally adjusted rate of 5.22 million in October. Sales are now down 5.1% from a year ago (5.5 million in October 2017).

 

The average interest rate for a 30-year fixed-rate mortgage is 4.81%, down from 4.94% one week ago, according to Freddie Mac. The average interest rate for a 15-year fixed-rate mortgage is 4.24%, down from 4.36%.

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Market Mirror

Friday, the Dow fell 178.74 points (0.73%) to 24,285.95, the NASDAQ closed 33.27 points (0.48%) lower at 6,938.98, and the S&P 500 decreased 17.37 points (0.66%) to 2,632.56. The Russell 2000 was virtually unchanged at 1,488.68, and the Wilshire 5000 lost 148.91 points (0.54%) to finish at 27,196.57.

 

The yield for the 10-year Treasury note was 3.040%, and the yield for the 30-year Treasury bond was 3.306%.

 

WEEK’S WORTH: For the week ending November 23, the Dow fell 4.44%, the NASDAQ lost 4.26%, and the S&P 500 finished 3.79% lower. The Russell 2000 was down 2.54%, and the Wilshire 5000 decreased 3.58%.

Compliance
PBGC to Provide Financial Assistance to Teamsters Local 805 Multiemployer Plan
The assistance, along with benefit reductions, will help the plan avoid insolvency. Read more >
Small Talk

ON THIS DATE: In 1716, the first lion to be exhibited in America went on display in Boston. In 1789, President George Washington set aside this day to observe the adoption of the Constitution of the United States. In 1832, public streetcar service began in New York City. In 1867, J.B. Sutherland patented the refrigerated railroad car. In 1917, the National Hockey League (NHL) was officially formed in Montreal, Canada. In 1941, President Franklin D. Roosevelt signed a bill establishing the fourth Thursday in November as Thanksgiving Day. In 1942, the motion picture “Casablanca” had its world premiere at the Hollywood Theater in New York City. In 1943, the HMS Rohna became the first ship to be sunk by a guided missile. The German missile attack led to the death of 1,015 U.S. troops. In 1965, France became the third country to enter space when it launched its first satellite, the Diamant-A. In 1975, Lynette “Squeaky” Fromme was found guilty by a federal jury in Sacramento, California, for trying to assassinate President Gerald Ford on September 5. In 1979, the International Olympic Committee voted to re-admit China after a 21-year absence. In 1986, President Ronald Reagan appointed a commission headed by Senator John Tower to investigate his National Security Council staff after the Iran-Contra affair. In 2003, the U.N. atomic agency adopted a resolution that censured Iran for past nuclear cover-ups and warning that it would be policed to put to rest suspicions that the country had a weapons agenda. In 2011, the Mars Science Laboratory/Curiosity spacecraft launched from Cape Canaveral Air Force Station, Florida.

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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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