Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
November 6th, 2017
Webcast Event
This Thursday, please join Russell Investments’ Steve Murray, Ph.D., CFA, head of Defined Contribution Solutions, Investment Division; Holly Verdeyen, CEBS, senior director, Defined Contribution Strategy; and Mark Teborek, CFA, consultant, Investment Consulting Services, as they provide insights on several actions plan sponsors can take to focus their limited time on things that can make the biggest difference. Read more >
Benefits & Administration
Employers Manage to Cap Increase in Health Care Costs at 2.6%
The 2017 Mercer National Survey of Employer-Sponsored Health Plans found that employers have been able to contain the rise in health care costs this year to 2.6%, essentially on par with the 2.4% increase in 2016. Mercer notes that employers were able to contain these costs without enrolling more employees into high-deductible plans. Read more >
Products, Deals and People
Retirement Industry People Moves
Regional director for Qualified Retirement Plan Sales joins Pentegra; ABG to partner with Stadion for managed account retirement strategy; Provident to move into Ascensus’ retirement division; and more. Read more >
MOST READ ARTICLES
1
The Senate Math That Could Block SECURE Act
2
House Committee Advances Bill to Establish Union Pension Lifeline Program
3
Open MEPs Not for Every Plan Sponsor
4
Driving Financial Wellness at Work
5
Pension Participants Claim ERISA Breaches in Dow DuPont Pension Transfer
Economic Events

New orders for manufactured durable goods in September increased $5.1 billion or 2.2% to $238.7 billion, the U.S. Census Bureau announced. This increase, up three of the last four months, followed a 2.0% August increase. Excluding transportation, new orders increased 0.7%. Excluding defense, new orders increased 2.0%. Transportation equipment, also up three of the last four months, led the increase, $4.0 billion or 5.1% to $81.2 billion.

 

Total nonfarm payroll employment rose by 261,000 in October, and the unemployment rate edged down to 4.1%, the Bureau of Labor Statistics reported. Employment increased in food services and drinking places, professional and business services, manufacturing, and health care.

 

THE ECONOMIC WEEK AHEAD: Thursday, the Labor Department will issue its initial claims report.

Sponsored message from Ayco
Adam Hills on The Ayco Approach
Watch the video. Read more >
Market Mirror

Friday, the Dow was up 22.93 points (0.10%) at 23,539.19, the NASDAQ gained 49.49 points (0.74%) to finish at 6,764.44, and the S&P 500 increased 7.99 points (0.31%) to 2,587.84. The Russell 2000 decreased by 1.64 (0.11%) to 1,494.91, and the Wilshire 5000 closed 98.47 points (0.37%) higher at 26,875.00.

 

The yield for the 10-year Treasury note was 2.334%. The yield for the 30-year Treasury bond was 2.815%.

 

WEEK’S WORTH: For the week ending November 3, the Dow finished 0.45% higher, the NASDAQ gained 0.94%, and the S&P 500 increased 0.26%. The Russell 2000 lost 0.89%, and the Wilshire 5000 was up 0.22%

Compliance
DOL Fiduciary Rule Enforcement Delay Under Review at OMB
Until the final rule’s publication in the Federal Register, the exact details and length of the second Department of Labor (DOL) fiduciary rule enforcement delay will remain unclear, but industry reports are widely discussing an 18-month delay. Read more >
From the Magazine
Equity Exposure in TDFs
Managers of target-date funds (TDFs) generally manage a fund’s risk by growing increasingly conservative—devoting larger allocations to fixed income vs. equity. Plan sponsors, too, expect to find more asset classes prone to volatility in participants’ holdings early in their careers when they can best tolerate the exposure. The equity allocations by fund objectives in both U.S. stock and non-U.S. stock follow that model almost to a tee. Read more >
Small Talk

ON THIS DATE: In 1789, Father John Carroll was appointed as the first Roman Catholic bishop in the United States of America. In 1860, Abraham Lincoln was elected to be the sixteenth president of the United States. In 1861, Jefferson Davis was elected as the president of the Confederacy in the U.S. In 1894, William C. Hooker received a patent for the mousetrap. In 1923, Jacob Schick was granted a patent for the electric shaver. In 1935, Edwin H. Armstrong announced his development of FM broadcasting. In 1952, the first hydrogen bomb was exploded at Eniwetok Atoll in the Pacific Ocean. In 1962, the U.N. General Assembly adopts a resolution that condemned South Africa’s racist apartheid policies. The resolution also called for all member states to terminate military and economic relations with South Africa. In 1965, the Freedom Flights program began which would allow 250,000 Cubans to come to the United States by 1971. In 1967, Phil Donahue began a TV talk show in Dayton, Ohio. The show was on the air for 29 years. In 1984, for the first time in 193 years, the New York Stock Exchange remained open during a presidential election day. In 1989, in the hopes of freeing U.S. hostages held in Iran, the U.S. announced that it would unfreeze $567 million in Iranian assets that had been held since 1979.

SURVEY SAYS RESPONSES: Last week, I asked NewsDash readers, “Does your company hold holiday events during work hours, and if so, are they a distraction to you or your co-workers?” Three-quarters (75.8%) of responding readers said their companies hold holiday events during work hours, while 24.2% reported they do not. The majority (78.5%) of respondents indicated these work-hour events are not a distraction, but 14.3% said they are a distraction to both themselves and their co-workers, and 7.1% reported they are a distraction to themselves. In verbatim comments, a few readers indicated they prefer holiday events during work hours rather than after hours. Several said these events are good for morale and for co-workers to bond. Many shared exactly what their office/company does to celebrate the holidays. Editor’s Choice goes to the reader who said: “Playing together can be just as important to team work as working together!” Thank you to all who participated in the survey! 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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