Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
October 20th, 2017

Best of PLANSPONSOR National Conference

At PLANSPONSOR, we know how valuable your time is. That’s why we’ve taken the most important topics discussed at our national event and packaged them into a convenient ½ day agenda hosted in a city close to you! If you are a plan sponsor, the Best of PSNC provides you with critical information you can take back to your office and use immediately to ensure your plan runs at its peak. If you are a retirement plan adviser, there is no better way to stay up to date on the latest challenges facing your clients. Choose to attend in Chicago—Oct. 24, Boston—Oct. 25, New York—Oct. 26, Newport Beach—Nov. 1, or Dallas—Nov. 2! Read more >
Compliance
IRS Announces 2018 Contribution/Benefits Limits
The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $18,000 to $18,500. Read more >
The Current State of Retirement Plan Litigation
Thomas E. Clark Jr., a partner in The Wagner Law Group, told attendees of the 2017 PLANADVISER National Conference that litigation in the retirement plan market is strong. New firms have jumped into the fray, following the model of Schlichter Bogard & Denton, a firm that has been bringing lawsuits against retirement plans and providers for years. “There are a half dozen of these firms filing complaints,” Clark observed. David Kaleda, a principal at Groom Law Group, Chartered, added that law firms are getting creative—moving down-market and to very large 403(b) plans. From cases that have been filed and decided, there are lessons to be learned. Read more >
Products, Deals and People
Northern Trust’s Focus TDFs Consider Each Plan’s Demographics
The target-date fund (TDF) series also take a liability-driven investing approach to providing adequate retirement income. Read more >
MOST READ ARTICLES
1
House Committee Advances Bill to Establish Union Pension Lifeline Program
2
The Senate Math That Could Block SECURE Act
3
Adidas Sued Over Excessive Fees for 401(k) Participants
4
Open MEPs Not for Every Plan Sponsor
5
(b)lines Ask the Experts – Proper Delivery Method for SPDs
Investment Products and Services
State Street Global Advisors launches new SPDR Portfolio ETFs; FS Investments introduces open-end mutual fund; Vanguard selects Wellington to manage global balanced funds; and more. Read more >
Economic Events

In the week ending October 14, the advance figure for seasonally adjusted initial claims for unemployment insurance was 222,000, a decrease of 22,000 from the previous week’s revised level of 244,000, the Labor Department reported. This is the lowest level for initial claims since March 31, 1973, when it was 222,000. The four-week moving average was 248,250, a decrease of 9,500 from the previous week’s revised average of 257,750.

The average interest rate for a 15-year fixed-rate mortgage is 3.88%, down from 3.91% one week ago, according to Freddie Mac. The average interest rate for a 30-year fixed-rate mortgage is 3.19%, down from 3.21%.

Sponsored message from Vanguard
Target-Date Funds: Built to Weather Volatility Uncertainty is often the cause of knee-jerk reactions by investors. Many DC plan sponsors select target-date funds (TDFs) as their plan’s qualified default investment alternative to curb emotional investing. Read more >
Market Mirror

Thursday, the Dow was up 5.44 points (0.02%) at 23,163.04, the NASDAQ closed 19.15 points (0.29%) lower at 6,05.07, and the S&P 500 was virtually unchanged at 2,562.10. The Russell 2000 decreased 3.10 points (0.21%) to 1,502.04, and the Wilshire 5000 was up 4.51 points (0.02%) at 26,639.89.

The price of the 10-year Treasury note was up 9/32, decreasing its yield to 2.314%. The price of the 30-year Treasury bond increased 14/32, bringing its yield down to 2.830%.

Benefits & Administration
GAO Calls on Congress to Improve Retirement Security in America
According to the GAO report, the three pillars of the current retirement system in the United States are anticipated to be unable to ensure adequate benefits for a growing number of Americans due, in part, to the financial risks associated with certain federal programs. Read more >
Small Talk

ON THIS DATE: In 1803, the U.S. Senate approved the Louisiana Purchase. In 1818, the U.S. and Great Britain established the boundary between the U.S. and Canada to be the 49th parallel. In 1903, a joint commission ruled in favor of the U.S. concerning a dispute over the boundary between Canada and the District of Alaska. In 1910, a baseball with a cork center was used in a World Series game for the first time. In 1930, “The Adventures of Sherlock Holmes” debuted on NBC radio. In 1947, Hollywood came under scrutiny as the House Un-American Activities Committee opened hearings into alleged Communist influence within the motion picture industry. In 1979, the John F. Kennedy Library in Boston was dedicated. In 1994, the website WhiteHouse.gov was launched. In 2003, a 40-year-old man went over Niagara Falls without safety devices and survived. He was charged with illegally performing a stunt.

 

And now it’s time for FRIDAY FILES!

An unusual customer for the ice cream truck. Read more >
Chickens have a different way of bobbing for apples than we do. Read more >
Is this elephant actually trying to figure out how to put a sandal on its foot? Read more >
In the U.S., Orkin released its Top 50 Rattiest Cities list. For the third consecutive ranking, Chicago takes the top spot. The metro regions are ranked by the number of rodent treatments the company performed from September 15, 2016, through September 15, 2017. This ranking includes both residential and commercial treatments. See if your city is on the list. Read more >

In Redford Township, Michigan, a wanted man posted negative messages on the police department’s Facebook page. The police threatened to ban him from the page. But, the next post from him said if the police department got 1,000 shares with their next post, he would turn himself in (he had probation violations) and bring donuts. The next post by the police department got around 4,200 shares, and the man showed up at the police station with a bag of donuts and a bagel. He told TV station WXYZ, “cops like doughnuts,” and he wanted to reward them for any inconvenience.

In Franklin County, Ohio, a man who pleaded guilty to a charge at a court hearing swore he was penniless and couldn’t pay his fine. However, deputies taking him to be processed for his six-year prison sentence then found he had $4,060 on him, according to the Associated Press. When the judge learned that, he gave the man the maximum fine of $20,000, plus court costs. About half the discovered cash was ordered to go to his attorney, who’d been shorted on his fees. The rest was applied toward the fine.

In West Palm Beach, Florida, a cadet in the Palm Beach County Sheriff’s Office decided to take his Sheriff’s Lieutenant father’s patrol car for a ride. Local news outlets say he used the car to pull over his ex-girlfriend and her new boyfriend. The patrol car was later found parked outside the home of the cadet’s friend. The cadet was ordered to stay away from the couple and faces multiple charges, including impersonating a law enforcement officer. He has been fired.

In Brockton, Massachusetts, while most armed robberies are very scary and demand huge amounts, this was not so at the Brockton Market and Deli. Two young men entered the establishment and only demanded $1 before fleeing, according to the Associated Press.

Have a great weekend!

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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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