| Benefit Briefs | Employer ACA Readiness Checkup | There are several Patient Protection and
Affordable Care Act (ACA) provisions that employers need to act on now. In a
webinar entitled, “Health Plans – Plan Sponsor Readiness Check-Up for 2015,”
Summer Conley, an Employee Retirement Income Security Act (ERISA) attorney
specializing in health and welfare benefits at Drinker Biddle & Reath in
Los Angeles, noted that employers face two potential penalties for 2015.
Attorneys from Drinker Biddle shared issues they have seen with clients and
steps employers should take now.Read more > | Lifetime Income Costs Up Sharply Since 2013 | Retirement savings for older workers racked up
impressive investment gains in the past 12 months, but the price of securing
lifetime retirement income is up significantly too. This is the state of
affairs described by the latest update of BlackRock’s CoRI Retirement
Indexes—which track the cost of purchasing lifetime retirement income by
estimating how much an investor needs to have saved today to generate a single
dollar of income in retirement, starting at age 65. Despite increased savings
for workers in their 50s, the indexes suggest most retirement savers are worse
off overall than they were 12 months ago, due to the significant increase in
price for lifetime income.Read more > | Small Employers May Face High Health Plan Renewal Rates | Employer health care costs remained stable for
2014, but the number of employers delaying renewal to delay the effects of
health care reform increased 322%. Thirty-two percent of all employers
postponed their renewal date, according to the 2014 United Benefit Advisors
Health Plan Survey. Of this 32%, a vast majority (94%) were small businesses
with less than 100 employees. Based on current renewal rates coming in from
carriers, in the states that did not allow renewal of pre-Patient Protection
and Affordable Care Act (ACA) plans, many small employers are facing rate
increases of 30% to 160%.Read more > | | Buyer's Market | Drew Miyawaki and Aodhagan Byrne, both members
of the U.K. operations of Legal & General Investment Management America
Inc. (LGIMA), have joined the U.S. division. Miyawaki, head of global equity
trading, will oversee equities trading and be directly responsible for
execution of all North American equities. Byrne, an index portfolio manager,
will manage North American Index strategies at LGIMA.Read more > | | Economic Events | In the week
ending October 18, the advance figure for seasonally adjusted initial claims for
unemployment insurance was 283,000, an increase of 17,000 from the previous
week’s revised level, the Labor Department reported. The previous week’s level
was revised up by 2,000 from 264,000 to 266,000. The four-week moving average
was 281,000, a decrease of 3,000 from the previous week’s revised average. This
is the lowest level for this average since May 6, 2000, when it was 279,250.
The previous week’s average was revised up by 500 from 283,500 to 284,000.
The average interest rate for a 30-year fixed-rate
mortgage is 3.92%, down from 3.97% one week ago, according to Freddie Mac. The average
interest rate for a 15-year fixed-rate mortgage is 3.08%, down from 3.18%.
| | Market Mirror | The Dow climbed 216.58 points (1.32%)
Thursday to 16,677.90, the NASDAQ gained 69.95 points (1.60%) to finish at
4,452.79, and the S&P 500 increased 23.71 points (1.23%) to 1,950.82. The
Russell 2000 closed 19.61 points (1.79%) higher at 1,116.49, and the Wilshire
5000 was up 256.04 points (1.26%) at 20,563.99.
On the NYSE, 3.3 billion shares traded,
with advancing issues outnumbering declining issues more than 3 to 1. On the
NASDAQ, 2.8 billion shares changed hands, with a near 3 to 1 lead for
advancers.
The price of the 10-year Treasury note was up 10/32,
decreasing its yield to 2.238%. The price of the 30-year Treasury bond
increased 16/32, bringing its yield down to 3.021%.
| | Rules & Regulators | Retirement Plan Deferral Limit Increases in 2015 | The Internal Revenue Service (IRS) announced
cost of living adjustments affecting dollar limitations for retirement plans,
as well as other retirement-related items for tax year 2015. The elective
deferral (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 $17,500 to $18,000.Read more > | President Obama has appointed Donald J. Butt to
serve as a member of the Advisory Committee of the Pension Benefit Guaranty
Corporation, charged with representing the interests of the general public. Butt
serves on the Board of the Defined Contribution Institutional Investment
Association, and is active with the Committee for the Investment of Employee
Benefit Assets (CIEBA).Read more > | Another Church Plan Lawsuit Is Filed | Employees and retirees of Daughters of Charity
Health System filed a class action lawsuit alleging that Daughters evaded
federal pension law requirements by claiming its plan is a church plan. The
complaint alleges the plan does not qualify as a church plan under the plain
language of the Employee Retirement Income Security Act (ERISA) because the
plan was not established by a church, so it should not be exempt from ERISA’s
funding and fiduciary requirements for defined benefit pension plans. The
plaintiffs in the suit, filed in the U.S. District Court for the Northern
District of California, cite the court’s previous decision in Rollins v.
Dignity Health as demonstrating the Daughters plan is not a church plan.Read more > | | The World at Large | Manufacturer Caterpillar is planning to change
its defined contribution (DC) plan lifestyle investment strategy to use
different glidepath corresponding to employees’ distribution choices at
retirement.Read more > | | Small Talk | ON
THIS DATE: In 1901,
a 63-year-old schoolteacher named Annie Edson Taylor became the first person to
take the plunge over Niagara Falls in a barrel. In 1929, in the U.S., investors dumped more than 13 million shares on
the stock market. The day is known as “Black Tuesday.” In 1931, eight months ahead of schedule,
President Franklin D. Roosevelt dedicated the George Washington Bridge over the
Hudson River. In 1940, in the U.S.,
the 40-hour workweek went into effect under the Fair Labor Standards Act of
1938. In 1945, less than two months
after the end of World War II, the United Nations was formally established with
the ratification of the United Nations Charter by the five permanent members of
the Security Council and a majority of other signatories. In 1992, the Toronto Blue Jays beat the
Atlanta Braves in the sixth game of the World Series to win the championship.
It was the first time a Canadian team had ever won the trophy.
And now it’s time for FRIDAY FILES!
| This guy should have made sure he was in the
right place to take the picture before lifting the camera to his eye (video).Read more > | A light show to get you in the mood for
Halloween (with music).Read more > | Five neat Halloween pumpkin decoration ideas
(video).Read more > | In Lawton, Oklahoma, a
woman entered Comanche County Memorial Hospital claiming she had a fever and
may have contracted Ebola. She said an African exchange student had stayed with
her. The hospital called in extra staff, but then found the woman did not have
Ebola, but was extremely into.xicated. According to local news stations, it was
discovered there was no exchange student that stayed with the woman; she made
up the story. She was charged with disturbing the peace.
In Olympia, Washington, a
man went to Intercity Transit to try to retrieve a bag he left on a city bus
from the Lost and Found. Intercity Transit had found the bag on one of its
buses and opened it to figure out who it belonged to. Inside, they reportedly
found mari.juana and mushrooms packaged for sale, small baggies and scales.
KOMO reports the bag also contained a large amount of cash and multiple pieces
of identification for the man. When he showed up at the Transit Customer
Service Desk to see if they had found his bag, staff notified police, and he
was arrested.
In Paw Paw, Michigan, a
woman was trying to drive to a bar to retrieve her boyfriend. However, she
confused another place for the bar. New York magazine reports a police officer
who noticed her backing into the jail’s
parking lot found that “she smelled of alcohol and appeared
intoxicated.” Her blood alcohol level turned out to be .17.
In Ventura
County, California, a man called police to report that someone was stuck in
his chimney. Deputies who responded to the scene said they found that a woman
had been stuck in the chimney for about two hours. The flue was lubricated with
dish soap, and she was lifted out of the chimney, placed in a Stokes basket and
hoisted from the roof by a ladder truck. The Sheriff’s Department said the man recognized
the woman as someone he met online and went on about six dates with. The woman
was charged with illegally entering a residence. “Before you have somebody come
in your house really check them out … really give it some time before you let
somebody in, because they might want to stay,” the man told local news station
KTLA.
Have a great weekend! | Share the good news with a friend! Pass the Dash along – and tell your
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