Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
September 11th, 2017

2018 Annual Plan Sponsor and Adviser Award Nominations Are Open

Nomination forms for the 2018 PLANSPONSOR Plan Sponsor of the Year awards and Retirement Plan Adviser of the Year awards are now available. Read more >
Benefits & Administration
Cooler Markets, Lower Interest Rates Cause DB Plan Funded Status to Decline
Asset management firms estimate pension funding ratios declined slightly in August, but most say they are up for the year. Read more >
Investors Share Misconceptions About Retirement Savings
One in five Americans incorrectly believes that 401(k) plans guarantee a steady stream of income in retirement regardless of market performance, according to a survey by the Indexed Annuity Leadership Council (IALC). Many respondents also reported the same misconception specifically in regards to mutual funds (22%) and certificates of deposit (20%). The study found only 9% of survey takers are focused on diversifying their portfolios. Read more >
Products, Deals and People
Retirement Industry People Moves
Northern Trust expands Foundation & Institutional Advisors team; Russell Investments names new CEO; Aon to acquire real estate and investment management firm; and more. Read more >
Economic Events
July sales of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations and trading-day differences but not for price changes, were $465.1 billion, down 0.1% from the revised June level, but up 5.9% from the July 2016 level, the Census Bureau reported. The May to June percent change was revised from the preliminary estimate of up 0.7% to up 0.6%.   THE ECONOMIC WEEK AHEAD: Wednesday, the Bureau of Labor Statistics (BLS) will reveal the producer price index for August. Thursday, the BLS will reveal the consumer price index for August, and the Labor Department will issue its initial claims report. Friday, the Census Bureau will report about retail sales for August and business inventories for July.
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
Market Mirror

Friday, the Dow increased 13.01 points (0.06%) to 21,797.79, the NASDAQ closed 37.68 points (0.59%) lower at 6,360.19, and the S&P 500 was down 3.67 points (0.15%) at 2,461.43. The Russell 2000 was virtually unchanged at 1,399.42, and the Wilshire 5000 decreased 39.83 points (0.16%) to 25,536.41.

 

The price of the 10-year Treasury note was down 5/32, increasing its yield to 2.055%. The price of the 30-year Treasury bond decreased 11/32, bringing its yield up to 2.675%.

 

WEEK’S WORTH: For the week ending September 8, the Dow finished 0.86% lower, the NASDAQ fell 1.17%, and the S&P 500 was down 0.61%. The Russell 2000 lost 1.00%, and the Wilshire 5000 decreased 0.70%.

Compliance
Court Finds Multiemployer Plans Can Impose More Than Withdrawal Liability on Employer
The 11th U.S. Circuit Court of Appeals ultimately determined there is no explicit restriction saying a critical-status multiemployer plan’s board of trustees cannot charge withdrawing employers for their share of the plan’s accumulated funding deficiency. Read more >
From the Magazine
Who’s With You?
What’s in a number? As a veteran third-party administrator (TPA) with many smaller clients, Jerry Kalish sees how their busy schedules and lack of fiduciary knowledge hinder their potential to choose the right type of outside fiduciary help. The result: “In some cases, sponsors don’t buy fiduciary services: They’re being sold,” says Kalish, president of Chicago National Benefit Services Inc. The different types of outside fiduciaries meet different types of sponsor needs, Kalish says—so a sponsor needs to understand the requirements it wants filled. Read more >
Small Talk

ON THIS DATE: In 1609, explorer Henry Hudson sailed into New York harbor and discovered Manhattan Island and the Hudson River. In 1776, a Peace Conference was held between British General Howe and three representatives of the Continental Congress (Benjamin Franklin, John Adams and Edward Rutledge). The conference failed and the American war for independence continued for seven years. In 1789, Alexander Hamilton was appointed by U.S. President George Washington to be the first secretary of the Treasury. In 1883, the mail chute was patented by James Cutler. The new device was first used in the Elwood Building in Rochester, New York. In 1941, in Arlington, Virginia, the groundbreaking ceremony for the Pentagon took place. In 1951, Florence Chadwick became the first woman to swim the English Channel from both directions. In 1952, Dr. Charles Hufnagel successfully replaced a diseased aorta valve with an artificial valve made of plastic. In 1954, the Miss America beauty pageant made its network TV debut on ABC. Miss California, Lee Ann Meriwether, was the winner. In 1959, Congress passed a bill authorizing the creation of food stamps. In 1967, The Carol Burnett Show premiered on CBS. In 1970, the last “Get Smart” episode aired on CBS. In 1974, “Little House On The Prairie” made its television debut. In 1974, the St. Louis Cardinals and the New York Mets set a National League record when they played 25 innings. It was the second longest game in professional baseball history. In 1977, the Atari 2600 was released. It was originally sold as the Atari VCS. In 1985, Pete Rose (Cincinnati Reds) achieved hit number 4,192 to break the record held by Ty Cobb. In 2001, in the U.S., four airliners were hijacked and were intentionally crashed. Two airliners hit the World Trade Center, which collapsed shortly after, in New York City. One airliner hit the Pentagon in Arlington, Virginia. Another airliner crashed into a field in Pennsylvania. About 3,000 people were killed. In 2012, terrorists attacked the U.S. consulate in Benghazi, Libya. Four Americans were brutally murdered and ten others were injured.

SURVEY SAYS RESPONSES: Last week, I asked NewsDash readers, “Which method did you use in college to store computer data?” And, for additional fun, I asked them to share which song/artist was most popular when they were a freshman in college. Among the answer choices listed, 36.5% of responding readers indicated there were no computers when they were in college. The 3.5-inch “floppy disk” was selected by 14.1% of respondents, while 8-inch floppy disk and 5 1/4-inch floppy disk were each selected by 7.1% of respondents. Only 1.2% selected CD-ROM. Nearly half (45.9%) of responding readers selected “other,” and punch cards were most often cited as the method for storing computer data. One reader said: “Rubber bands were very important, because if you dropped your stack of cards and they got out of order, you’d have to start all over again.” Many readers reminisced about their college days in verbatim comments, and helped me to reminisce too! I remember my Mom pushing me to “get into computers,” but as one reader said, I took one programming class and was discouraged from that major. Many of the readers cited using typewriters, and using white out or correction tape to correct errors, and I remember that as well. Editor’s Choice was difficult, but this week it goes to the reader who said: “In a 1977 freshman convocation, I recall being told that within 10 years, 2/3 of all jobs would be in future categories that did not yet exist. I believe that probably did happen, and likely will again. Learn to think critically, to show respect, and to communicate well, and you might adapt and overcome.” Thanks to everyone who participated in the survey! Read more >
Share the 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 alison.mintzer@strategic-i.com

Advertising: Paul Zampitella paul.zampitella@strategic-i.com

Subscribe to NEWSDash, click here .

To unsubscribe, click here.

BrightScope / CIO / FWW / Investor Economics / LiquidMetrix / Market Metrics / Matrix Solutions / PLANADVISER / Plan For Life / PLANSPONSOR / Simfund