Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
November 7th, 2016
Benefits & Administration
Roth IRAs Can Benefit Participants in Various Circumstances
A new report from Vanguard argues Roth IRA offerings can help participants concerned about estate planning and maximizing tax efficiency for retirement spending.Read more >
Products, Deals and People
Retirement Industry People Moves
T. Rowe CIO to Retire; Voya Hires VP of ESG; Morningstar Appoints Two New Leaders in Tech; and more.Read more >
Is the UAW’s Demand for Return of Pensions a Realistic Ask?
Deals and People
Voya Keeps Building Government Markets Team With Rehire
Data and Research
Unplanned Financial Challenges Continue to Plague US Workers’ Retirement Savings
Economic Events

Total nonfarm payroll employment rose by 161,000 in October, and the unemployment rate was little changed at 4.9, according to the Bureau of Labor Statistics. Employment continued to trend up in health care, professional and business services, and financial activities.

THE ECONOMIC WEEK AHEAD: Wednesday, the Census Bureau will report about wholesale inventories for September. Thursday, the Labor Department will issue its initial claims report.
Sponsored message from American Century
Advance Your Approach to Target-Date Evaluation & Selection
Overview of four common labels to better compare TDFs – and advance the manager selection process.Read more >
Market Mirror

Friday, the Dow closed 42.39 points (0.24%) lower at 17,888.28, the NASDAQ decreased 12.04 points (0.24%) to 5,046.37, and the S&P 500 was down 3.48 points (0.17%) at 2,085.18. The Russell 2000 closed 6.55 points (0.57%) higher at 1,163.43, and the Wilshire 5000 slipped 20.75 points (0.10%) to 21,594.28.

On the NYSE, 3.1 billion shares changed hands, and on the NASDAQ, 2.9 billion shares traded, with a slight lead for advancing issues on both exchanges.

The yield of the 10-year Treasury note was 1.776%, and the yield for the 30-year Treasury bond was 2.562%.

WEEK’S WORTH: For the week ending November 4, the Dow was down 1.50%, the NASDAQ fell 2.77%, and the S&P 500 decreased 1.94%. The Russell 2000 finished 2.04% lower, and the Wilshire 5000 lost 2.11%.
From the Magazine
Plan Sponsor Demand Shapes Fund Fees
In the wake of the strengthened fee disclosure regulations of the last decade, plan sponsors and other asset owners have come to give more thought to the absolute cost of accessing investments, as well as of recordkeeping and other services tied to retirement plans. The result is cheaper, more transparent investment products.Read more >
Can Funds With 12b-1 Fees Still Work in Retirement Plans?
Some experts believe retirement plan sponsors shouldn’t offer any mutual funds with 12b-1 revenue-sharing fees in their investment lineups; on the other hand, other experts maintain that by crediting revenue back to the plan, funds with 12b-1 fees can actually cost less than those without such fees. In either case, given their strict fiduciary responsibility, defined contribution (DC) plan sponsors have a duty to compare funds with these fees to those without—and to decide which fits best for their participants’ individual circumstances.Read more >
LDI Still a Viable DB Plan Derisking Strategy
Liability-driven investing (LDI) strategies have been used by defined benefit (DB) plans for decades, but gained steam with the passage of the Pension Protection Act (PPA) of 2006, which increased penalties for underfunded pensions, and the financial crisis of 2008, which reduced returns on assets dramatically. With increased volatility of the markets and low interest rates increasing liabilities and the price of purchasing bonds, the question is, is LDI still effective? Yes, say experts, who believe LDI is still a viable approach for derisking DB plans.Read more >
Small Talk
ON THIS DATE: In 1874, the Republican party of the U.S. was first symbolized as an elephant in a cartoon by Thomas Nast in Harper’s Weekly. In 1876, the cigarette manufacturing machine was patented by Albert H. Hook. In 1893, the state of Colorado granted women in the state the right to vote. In 1916, Jeanette Rankin of Montana became the first woman elected to the U.S. Congress. In 1929, the Museum of Modern Art in New York City opened to the public. In 1944, U.S. President Franklin D. Roosevelt became the first person to win a fourth term as president. In 1965, the “Pillsbury Dough Boy” debuted in television commercials. In 1967, Carl Stokes was elected the first black mayor Cleveland, Ohio, becoming the first black mayor of a major city. In 1967, U.S. President Lyndon B. Johnson signed a bill establishing the Corporation for Public Broadcasting. In 1989, L. Douglas Wilder won the governor’s race in Virginia, becoming the first elected African-American state governor in U.S. history. In 1989, David Dinkins was elected and become New York City’s first African-American mayor. In 1999, Tiger Woods became the first golfer since Ben Hogan in 1953 to win four straight tournaments.
SURVEY SAYS:  Last week, I asked NewsDash readers, “Are you happy at work, and which factors contribute to you being happy at work?” Asked, on a scale from 1 to 5, how happy responding readers are at work, the majority of responding readers (56.4%) selected 4 for “mostly happy,” and 14.5% selected 5 for “completely happy.” The top factors respondents say contribute or would contribute to their happiness at work are interest in their work (68.4%), being treated with respect and fairness (61.8%), being shown appreciation for their work (59.2%), getting along with coworkers (44.7%) and being able to help people (43.4%). In verbatim comments, readers shared why they are or are not happy at work. One reader thought this was not the best time for this survey: “Open Enrollment time is usually not a good time to ask your Benefits-related readers if they’re happy!” Several readers noted that it is up to ourselves to be happy, but Editor’s Choice goes to the reader who said: “I make the decision to be happy each morning when I get up and get ready for work. Sometimes, I argue that decision with myself, but I usually win.” Thank you to everyone who responded to the survey!Read more >
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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