Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
November 28th, 2016
Benefits & Administration
The California Public Employees’ Retirement System (CalPERS) saved its Pension Fund $922.5 million in the last five years, according to the Annual Cost Efficiency and Effectiveness Report, released by the CalPERS board of directors. The report highlights initiatives that led to savings in the investment, health care, and information technology programs between fiscal years 2011 and 2016.Read more >
Alleviating Health Care’s Bite on Retirement Income
Health care costs continue to rise, but an approach utilizing the right investment vehicles and tools to gauge future health care expenses may help investors prepare for the worst.Read more >
The Do’s and Don’ts for Simplifying SPDs
Loaded with information about when employees may begin participating in plans, benefits involved, vesting and so on, the language utilized in summary plan descriptions (SPDs) is critical.Read more >
Ask the Experts
What Qualifies as an ‘Immediate and Heavy Financial Need’ Under Hardship Withdrawal Rules?
Data and Research
Satisfaction With Retirement Plan Digital Experience Falls
Goldman Sachs Did Not Violate ERISA Requirements, Court Says
Products, Deals and People
BlackRock updates Lifepath TDFs, and SSGA to introduce proprietary indexes to replace terminated Russell indexes.Read more >
Retirement Industry People Moves
Fidelity CEO Abigail Johnson to succeed father as chairman, and AB creates chief marketing officer role.Read more >
Sponsored message from MetLife
Protecting Participant Benefits
How a pension risk transfer to an insurer can enable plan sponsors to reduce plan risks.Read more >
Economic Events

Sales of new single-family houses in October were at a seasonally adjusted annual rate of 563,000, according to estimates released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 1.9% below the revised September rate of 574,000, but is 17.8% above the October 2015 estimate of 478,000.

New orders for manufactured durable goods in October increased $11.0 billion or 4.8% to $239.4 billion, the U.S. Census Bureau announced. This increase, up four consecutive months, followed a 0.4% September increase. Excluding transportation, new orders increased 1.0%. Excluding defense, new orders increased 5.2%. Transportation equipment, also up four consecutive months, led the increase, $9.5 billion or 12.0% to $88.2 billion.

In the week ending November 19, the advance figure for seasonally adjusted initial claims for unemployment insurance was 251,000, an increase of 18,000 from the previous week’s revised level of 233,000, the Labor Department reported. The four-week moving average was 251,000, a decrease of 2,000 from the previous week’s revised average of 253,000.

The average interest rate for a 30-year fixed-rate mortgage is 4.03%, up from 3.94% one week ago, according to Freddie Mac. The average interest rate for a 15-year fixed-rate mortgage is 3.25%, up from 3.14%.

THE ECONOMIC WEEK AHEAD: Tomorrow, the Conference Board will release its Consumer Confidence Index for November. Thursday, the Labor Department will issue its initial claims report, and the Census Bureau will report about construction spending for October. Friday, the Bureau of Labor Statistics will reveal the unemployment rate for November.
Market Mirror

Friday, the Dow gained 68.96 points (0.36%) to finish at 19,152.14, the NASDAQ closed 18.24 points (0.34%) higher at 5,398.92, and the S&P 500 increased 8.63 points (0.39%) to 2,213.35. The Russell 2000 was up 5.11 points (0.38%) at 1,347.20, and the Wilshire 5000 climbed 88.72 points (0.38%) to 23,168.23.

On the NYSE, 3.0 billion shares changed hands, and on the NASDAQ, 2.8 billion shares traded, with 1.8 advancing issues for every declining issue on both exchanges.

The price of the 10-year Treasury note was down 2/32, increasing its yield to 2.358%. The price of the 30-year Treasury bond was up 6/32, decreasing its yield to 3.007%

WEEK’S WORTH: For the week ending November 25, The Dow finished 1.51% higher, the NASDAQ increased 1.45%, and the S&P 500 was up 1.44%. The Russell 2000 climbed 2.40%, and the Wilshire 5000 gained 1.59%.
Another Plan Challenged for Offering Sequoia Fund
Participants in the FMC Corporation Savings and Investment Plan have sued the firm and the plan over the plan’s substantial assets in the Sequoia Fund. The lawsuit claims the plan’s fiduciaries breached their Employee Retirement Income Security Act (ERISA) duties by continuing to offer the fund, because it was not diversified.Read more >
From the Magazine
The New Overtime Rule
Although a federal court has issued an injunction on the Department of Labor’s (DOL)’s final overtime rule under the Fair Labor Standards Act (FLSA)—meaning it will not take effect on December 1—plan sponsors should understand what effects the rule will have on their retirement plans if the rule does go into effect.Read more >
Small Talk
ON THIS DATE: In 1520, Portuguese navigator Ferdinand Magellan reached the Pacific Ocean after passing through the South American strait. The strait was named after him. He was the first European to sail the Pacific from the east. In 1922, Captain Cyril Turner of the Royal Air Force gave the first public exhibition of skywriting. He spelled out, “Hello USA. Call Vanderbilt 7200” over New York’s Times Square. In 1925, The Grand Ole Opry made its radio debut on station WSM. In 1963, U.S. President Lyndon Johnson announced that Cape Canaveral would be renamed Cape Kennedy in honor of his assassinated predecessor. The name was changed back to Cape Canaveral in 1973 by a vote of residents. In 1964, the U.S. launched the space probe Mariner IV from Cape Kennedy on a course set for Mars. In 1995, U.S. President Clinton signed a $6 billion road bill that ended the federal 55 mph speed limit.
Share the good news with a friend! Pass the NewsDash along—and tell your friends/associates they can sign up for their own copy.Read more >

Editorial: Alison Cooke Mintzer


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