Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
September 28th, 2018
Benefits & Administration
LGBTQ Retirement Savers Need to Invest More Conservatively
Stock market volatility and a major downturn in the stock market seem worrisome for the LGBTQ community as people approach or live in retirement. MassMutual suggests adviser conversations and target-date fund (TDFs) may help. Read more >
Most Participants Welcome Retirement Savings Help From Plan Sponsors
Many participants see the match percentage as a suggestion for how much to save; the majority of participants support automatic plan features; and even participants who are hands-on with investing like TDFs, J.P. Morgan found. Read more >
Products, Deals and People
403(b) and 457(b) Plan Recordkeeper Enhances Platform
IPX is a modernization of traditional recordkeeping platforms that serve plans with multiple providers. Read more >
Investment Product and Service Launches
Capital Group adopts PFaroe; Reliance Trust chooses Northern Trust to support CITs; Vanguard introduces low-cost ESG ETFs; and more. Read more >
MOST READ ARTICLES
1
Adidas Sued Over Excessive Fees for 401(k) Participants
2
(b)lines Ask the Experts – Proper Delivery Method for SPDs
3
Yale Sued Over Wellness Program ‘Penalty’
4
Employees in Two States Miss Out on One HSA Benefit
5
Some Help for Women’s Retirement Savings Gap May Be Coming
Economic Events

New orders for manufactured durable goods in August increased $11.1 billion or 4.5% to $259.6 billion, the U.S. Census Bureau announced. This increase, up two of the last three months, followed a 1.2% July decrease. Excluding transportation, new orders increased 0.1%. Excluding defense, new orders increased 2.65. Transportation equipment, also up two of the last three months, led the increase, $10.9 billion or 13.0% to $95.3 billion.

In the week ending September 22, the advance figure for seasonally adjusted initial claims for unemployment insurance was 214,000, an increase of 12,000 from the previous week’s revised level of 202,000, the Labor Department reported. The four-week moving average was 206,250, an increase of 250 from the previous week’s revised average of 206,000.

The average interest rate for a 30-year fixed-rate mortgage is 4.72%, up from 4.65% one week ago, according to Freddie Mac. The average interest rate for a 15-year fixed-rate mortgage is 4.16%, up from 4.11%.

Market Mirror

Thursday, the Dow closed 54.65 points (0.21%) lower at 26,439.93, the NASDAQ increased 51.60 points (0.65%) to 8,041.97, and the S&P 500 was up 8.03 points (0.28%) at 2,914.00. The Russell 2000 was down 1.08 points (0.06%) at 1,690.53, and the Wilshire 5000 decreased 51.74 points (0.17%) to 30,250.87.

The price of the 10-year Treasury note decreased 2/32, bringing its yield up to 3.053%. The price of the 30-year Treasury bond was down 1/32, increasing its yield to 3.184%.

Sponsored message from ADP
Improving Plan Health. Plan sponsors’ perspectives on plan health and the drivers that can impact it.  Read more >
Compliance
Annuity Selection Safe Harbor Tacked Onto Retirement Bill
House Ways and Means Committee chairman Kevin Brady, R-Texas, submitted an amendment to the Family Savings Act—legislation included in a package of bills as part of Tax Reform 2.0. The amendment is a fiduciary rule safe harbor for the selection of a lifetime income provider for retirement plans. Read more >
EEOC Cracks Down on Age Discrimination With a New Lawsuit
A number of individuals see retiring later as a strategy to having enough income to last throughout their lifetime, but a new Equal Employment Opportunity Commission (EEOC) case highlights how this may be a struggle for some. The agency is accusing an internet-based auto parts seller of violating federal law when it refused to hire a 64-year-old job applicant. Read more >
KRS Wins Lawsuit While Another Suit Over Hedge Fund Investments Is Ongoing
A court agreed that the Kentucky Retirement System board of trustees were permitted by law to choose alternative investments one city claimed produced small returns and high fees. Read more >
Investing
Trade War Effects on Retirement Plans
What plan sponsors should consider as trade wars intensify. Read more >
Plan Sponsors Need the Right Motivations for Choosing ESG Investments
Political motivations and investor recommendations can result in choosing a low-performing investment for a retirement plan. Read more >
Small Talk

ON THIS DATE: In 1781, during the Revolutionary War, American forces began the siege on Yorktown, Virginia. In 1787, Congress voted to send the new Constitution of the United States to the state legislatures for their approval. In 1789, the first Federal Congress passed a resolution that asked President George Washington to recommend to the nation a day of thanksgiving. In 1924, the first around-the-world flight was completed by two U.S. Army planes when they landed in Seattle, Washington. The trip took 175 days. In 1955, the World Series was televised in color for the first time. The game was between the New York Yankees and the Brooklyn Dodgers. In 1991, in response to U.S. President Bush’s reduction of U.S. nuclear arms Soviet President Mikhail S. Gorbachev promised to reciprocate. In 2004, the U.S. Federal Reserve and the U.S. Secret Service introduced the first newly redesigned $50 bill.

And now it’s time for FRIDAY FILES!

You really have to wonder sometimes what people are thinking. Read more >
In Boulder, Colorado, someone was carted off the field during the University of Colorado Buffaloes’ football game against the University of New Hampshire. It was their mascot, Chip, who had the T-Shirt cannon pointed in the wrong direction. He later returned, okay. Read more >
In Cranford, New Jersey, Steve Bacque, the self-proclaimed Crazy Cranford Cowboy, rides through town at the delight of residents. His ride is a golf cart motor powered by four electric batteries outfitted to look like a horse. The motorized horse is named Charger. [pic] Read more >

In Miami Beach, Florida, police pulled over a woman driver. She and her boyfriend were asked to get out of the car and an officer asked the boyfriend if he had anything to say, according to the Associated Press. That’s when the boyfriend got down on one knee, held out a ring and said, “I just want you to marry me.” He had gone to the police station earlier to ask for help with his proposal. She said yes.

Wishing everyone a happy weekend!

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

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