| | Benefit Briefs | | Adult Children May Undermine Parents’ Retirement Security | | Six in 10 American parents support their adult
children financially, according to a study from the LIMRA Secure Retirement
Institute. Parents with Millennial children most often help to pay for cell
phones and mobile service, college expenses and loans, rent or mortgage
payments, and even entertainment costs, such as for movies or sporting events. “Parents
of Millennials, even those over the age of 22, are providing considerable
support to their children at a time in their lives when saving from retirement
should be a priority,” says Deb Dupont, associate managing director, LIMRA
Secure Retirement Institute.Read more > | | | Buyer's Market | | Pershing LLC, a BNY Mellon company, added new
advisory and institutional share classes from nine fund families to its
FundVest mutual fund platform. Pershing says it is responding to client and
investor demand for more choice and lower fees by adding 271 advisory and
institutional class funds to FundVest.Read more > | | | Industry Voices | | Industry Voice: Premiums for Underfunding Are Tripling | | The Pension Benefit Guaranty Corporation (PBGC)
charges pension plans a portion of their underfunding each year. Through 2013,
the charge was 0.9% of the underfunding. By 2016, that rate will triple to
approximately 2.9%. For example, a plan that is $20 million underfunded will be
charged a premium of $580,000 per year. How can plan sponsors handle this?
Options are somewhat limited. PBGC rules offer a choice of two calculation
methods, and that can offer occasional relief. But, plan assets and liabilities
are largely at the mercy of market forces. The most straightforward answer is
to contribute cash into the pension plan.Read more > | | | Economic Events | | New orders
for manufactured durable goods in September decreased $3.2 billion or 1.3% to
$241.6 billion, the U.S. Census Bureau announced. This decrease, down two
consecutive months, followed an 18.3% August decrease. Excluding
transportation, new orders decreased 0.2%. Excluding defense, new orders
decreased 1.5%. Transportation
equipment, also down two consecutive months, led the decrease, $2.8 billion or
3.7% to $73.4 billion.
The Conference Board Consumer Confidence Index, which
had decreased in September, rebounded in October. The Index now stands at 94.5
(1985=100), up from 89.0 in September. The Present Situation Index edged up
from 93.0 to 93.7, while the Expectations Index increased sharply to 95.0 from
86.4 in September.
| | | Market Mirror | | Tuesday, the Dow topped 17,000 again, rising
187.81 points (1.12%) to 17,005.75. The NASDAQ climbed 78.36 points (1.75%) to
4,564.29, and the S&P 500 increased 23.42 points (1.19%) to 1,985.05. The
Russell 2000 gained 31.98 points (2.86%) to finish at 1,149.45, and the Wilshire
5000 closed 274.65 points (1.33%) higher at 20,928.81.
On the NYSE, 3.3 billion shares traded,
with advancing issues outnumbering declining issues more than 5 to 1. On the
NASDAQ, 2.8 billion shares changed hands, with a more than 4 to 1 lead for advancers.
The price of the 10-year Treasury note and the price
of the 30-year Treasury bond each inched up 1/32, bringing their yields down to
2.295% and 3.067%, respectively.
| | | Rules & Regulators | | Even a Small Deferral Limit Increase Is Important | | A $500 increase in the annual elective deferral
maximum for defined contribution retirement plans may seem small, but one
expert sees important implications in the increase. Kevin Crain is a 30-year
veteran of the financial services industry, currently serving as a senior
relationship executive for Bank of America Merrill Lynch. Crain says the
relatively small increase in maximum deferrals on the defined contribution (DC)
side is important for several reasons.Read more > | | PBGC Assists Struggling Multiemployer Plans | | The Pension Benefit Guaranty Corporation (PBGC)
has sent an initial installment of more than $284,000 to cover benefits for 365
people in two insolvent multiemployer plans in New York. The agency sent about
$108,100 to pay benefits for 184 current and retired transportation workers
covered under the Teamsters Local 531 Pension Plan based in Brooklyn.Read more > | | Summaries of the latest from Washington and the
courts—what’s coming, what’s contemplated and what’s critical to plan sponsors.Read more > | | Attorney Explains TDF Annuity Rule | | What does the new guidance about annuity
investments in target-date funds (TDFs) mean for retirement plan sponsors and
participants? While at the 2014 America Society of Pension Professionals and
Actuaries (ASPPA) Annual Conference, S. Derrin Watson, an attorney with SunGard
spoke with PLANSPONSOR about what exactly the guidance allows and how annuities
in TDFs will work for participants. Watson notes the IRS is trying to find ways
to provide for at least part of participants’ retirement savings to be invested
in annuities that will provide them with lifetime income.Read more > | | Editor’s Note: We
have made a correction to information about the new TDF annuity rule in an
article included in yesterday’s NewsDash. You may view the corrected article
here.Read more > | | | Small Talk | | ON
THIS DATE: In 1652,
the Massachusetts Bay Colony proclaimed itself to be an independent
commonwealth. In 1682, William Penn
landed at what is now Chester, Pennsylvania. He was the founder of
Pennsylvania. In 1863, the
International Committee of the Red Cross was founded. In 1929, Black Tuesday hit Wall Street as investors traded 16,410,030
shares on the New York Stock Exchange in a single day. Billions of dollars were
lost, wiping out thousands of investors, and stock tickers ran hours behind
because the machinery could not handle the tremendous volume of trading. In the
aftermath of Black Tuesday, America and the rest of the industrialized world
spiraled downward into the Great Depression. In 1945, the first ballpoint pens to be made commercially went on sale
at Gimbels Department Store in New York at the price of $12.50 each. In 1960, Muhammad Ali (Cassius Clay) won
his first professional fight. In 1966,
the National Organization for Women was founded. In 1969, the U.S. Supreme Court ordered an immediate end to all school
segregation. In 1966, “96 Tears” became a No. 1 hit for ? and the
Mysterians. In 1974, U.S. President
Gerald Ford signed a new law forbidding discrimination in credit applications
on the basis of se.x or marital status. In 1995,
Jerry Rice of the San Francisco 49ers became the NFL’s career leader in
receiving yards with 14,040 yards. In 1998,
nearly four decades after he became the first American to orbit the Earth,
Senator John Hershel Glenn, Jr., was launched into space again as a payload
specialist aboard the space shuttle Discovery.
At 77 years of age, Glenn was the oldest human ever to travel in space.
WEDNESDAY
WISDOM: “Beware
of false knowledge; it is more dangerous than ignorance.”—George Bernard Shaw, Irish playwright and a co-founder
of the London School of Economics
| | Share the good news with a friend! Pass the Dash along – and tell your
friends/associates they can sign up for their own copy.Read more > | | News from PLANSPONSOR.com
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