Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
September 23rd, 2019

Interest Rates a Factor for Crucial DB Valuation Decisions

It’s time for many plan sponsors to determine what rate they will use to determine unfunded vested benefits, and they also should carefully consider whether to use legislation-provided funding relief. Read more >
Benefits & Administration
Small Businesses Willing to Band Together to Reduce Health Benefit Costs
A survey found 92% of small businesses are willing to work together to push for changes to make health care more affordable, but there are options created by regulators that could help some of them now. Read more >
Products, Deals and People
Retirement Industry People Moves
Past PIMCO and Goldman Sachs exec joins Retiree, Inc., and Mercer Health adds principal to Dallas office. Read more >
Economic Events
THE ECONOMIC WEEK AHEAD: Tomorrow, the Conference Board will release its Consumer Confidence Index for September. Thursday, the Labor Department will issue its initial claims report. Friday, the Census Bureau will report about durable goods orders for August.
MOST READ ARTICLES
1
AT&T Sued Over Calculation of Early Retirement Benefits
2
Congressional Leaders Want SECURE Act Passage in 2019
3
Social Security Administration Announced COLA for 2020
4
Could GE Have Continued Its DB Benefits?
5
Millennium Trust Helps Small Businesses Select a Retirement Plan
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Market Mirror

Friday, the Dow lost 159.72 points (0.59%) to finish at 26,935.07, the NASDAQ fell 65.21 points (0.80%) to 8,117.67, and the S&P 500 closed 14.75 points (0.49%) lower at 2,992.04. The Russell 2000 was down 1.73 points (0.11%) at 1,559.75, and the Wilshire 5000 decreased 139.47 points (0.45%) to 30,610.63.

 

The price of the 10-year Treasury note increased 27/32, bringing its yield down to 1.725%. The price of the 30-year Treasury bond climbed 1 28/32, decreasing its yield to 2.158%.

 

WEEK’S WORTH: For the week ending September 20, the Dow lost 1.05%, the NASDAQ finished 0.72% lower, and the S&P 500 decreased 0.51%. The Russell 2000 fell 1.17%, and the Wilshire 5000 was down 0.50%.

Compliance
PBGC Releases New Forms Relating to ERISA Section 4062(e)
In 2014, President Barack Obama signed into law major changes to Section 4062(e), which requires companies with defined benefit (DB) plans to report to the PBGC when they stop operations at a facility and employees lose their jobs. Read more >
IRS Finalizes Hardship Withdrawal Rules
Michael A. Webb, with Cammack Retirement Group, says there are no substantive changes from the proposed regulations, but he points out certain items in the final regulations plan sponsors should note. Read more >
Funded Status Not a Good Measure for Whether DB Plan Participants Can Sue
The U.S. Solicitor General and the Pension Rights Center have filed briefs with the Supreme Court for a fiduciary breach case the U.S. 8th Circuit Court of Appeals dismissed based on the fact that a DB plan had enough money left over to keep paying benefits. Read more >
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The 403(b) Plan Remedial Amendment Period Read more >
Small Talk

ON THIS DATE: In 1642, the first commencement at Harvard College, in Cambridge, Massachusetts, was held. In 1780, John Andre, a British spy, was captured with papers revealing that Benedict Arnold was going to surrender West Point, New York, to the British. In 1806, the Corps of Discovery, the Lewis and Clark expedition, reached St. Louis, Missouri, and ended the trip to the Pacific Northwest. In 1845, the Knickerbocker Base Ball Club of New York was formed by Alexander Joy Cartwright. It was the first baseball team in America. In 1846, astronomer Johann Gottfried Galle discovered the planet Neptune. In 1930, flashbulbs were patented by Johannes Ostermeier. In 1962, New York’s Philharmonic Hall opened. It was the first unit of the Lincoln Center for the Performing Arts. The hall was later renamed the Avery Fisher Hall. In 1962, “The Jetsons” premiered on ABC-TV. It was the first program on the network to be carried in color. In 1993, black South Africans were allowed a role in the South African government after a parliamentary vote. In 1998, Jamie Lee Curtis received a star on the Hollywood Walk of Fame. In 1999, Siegfried & Roy received a star on the Hollywood Walk of Fame.

SURVEY SAYS RESPONSES: Last week, I asked NewsDash readers whether they think the U.S. is headed into a recession. Despite my thought that “headed into” implied something imminent, quite a few responding readers pointed out that a recession is part of the economic cycle and bound to happen every so often. That being said, responding readers were nearly evenly split about whether the U.S. economy is headed into a recession, with half believing it’s not and 46.5% believing it is. The rest had no opinion. Readers who left comments provided reasons they think the U.S. is or is not headed into one. Some believe we are in for a stall or stagnation rather than a recession. A couple of readers noted that they are retiring very soon and are concerned about whether the markets will support that. Editor’s Choice goes to the reader who said: “This pressure to artificially manipulate the markets to delay them will only result in a much more severe, lengthy recession at some point. Kicking the can down the road just makes the problem worse when it appears.” Thank you to all who participated in the survey! Read more >
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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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