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PLANSPONSOR NEWSDASH LOGO September 28th, 2020
Insight on Plan Design & Investment Strategy Every Weekday
Compliance
MGM Resorts Hit With 401(k) Plan Excessive Fee Suit
The allegations are similar to many other pieces of litigation challenging the use of actively managed funds over passive funds and the use of higher-cost share classes.
Compliance
Cornell Agrees to Pay $225,000 to Settle Suit Regarding 403(b) Plan
The settlement is limited to the single claim that survived summary judgment, related to the share class of the TIAA-CREF Lifecycle Funds.
Most Read
Compliance
Contribution Limits Unchanged for 2021
Compliance
House Committee Introduces ‘Securing a Strong Retirement Act of 2020’

2020 Recordkeeping Survey
Economic Events
New orders for manufactured durable goods in August increased $1.0 billion or 0.4% to $232.8 billion, the U.S. Census Bureau announced. This increase, up four consecutive months, followed an 11.7% July increase. Excluding transportation, new orders increased 0.4%. Excluding defense, new orders increased 0.7%. Machinery, also up four consecutive months, led the increase, $0.5 billion or 1.5% to $31.2 billion.

Tomorrow, the Conference Board will release its Consumer Confidence Index for September. Thursday, the Labor Department will issue its initial claims report, and the Census Bureau will report about construction spending in August. Friday, the Bureau of Labor Statistics will reveal the unemployment rate for September, and the Census Bureau will report about factory orders for August.
Market Mirror
Friday, the Dow increased 358.52 points (1.34%) to 27,173.96, the NASDAQ climbed 241.30 points (2.26%) to 10,913.56, and the S&P 500 closed 51.87 points (1.60%) higher at 3,298.46. The Russell 2000 fell 22.05 points (1.47%) to 1,474.91, and the Wilshire 5000 gained 571.30 points (1.72%) to finish at 33,816.42.

The price of the 10-year Treasury note was up 1/32, decreasing its yield to 0.658%. The price of the 30-year Treasury bond increased 2/32, bringing its yield down to 1.401%.

For the week ending September 25, the Dow lost 1.75%, the NASDAQ finished 1.11% higher, and the S&P 500 was down 0.63%. The Russell 2000 fell 4.03%, and the Wilshire 5000 decreased 0.70%.
Administration
PSNC 2020: Creating Income Streams for Participants
Panelists reviewed different lifetime income stream selections and important disclosures to note under the SECURE Act.
PSNC 2020: Improving Plan Committees and Governance
Industry experts say one key takeaway is the importance of having a retirement plan committee that reflects the diversity of the participant population.
Investing
PSNC 2020: Moving the Investment Menu Beyond Mutual Funds
Retirement industry experts take a look at collective investment trusts, exchange-traded funds and separate accounts.
Deals and People
Retirement Industry People Moves
Schroders selects fixed income head and CalPERS names private equity investment director.
Small Talk
ON THIS DATE: In 1781, during the Revolutionary War, American forces began the siege on Yorktown, Virginia. In 1850, President Millard Fillmore named Brigham Young the first governor of the Utah territory. In 1928, penicillin was discovered by Sir Alexander Fleming. 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 1997, the official debut of the DVD format was featured at the 103rd convention of the Audio Engineering Society (AES), held in New York City. In 2004, the Federal Reserve and the Secret Service introduced the first newly redesigned $50 bill.
SURVEY SAYS RESPONSES: Last week, I asked NewsDash readers, “Have you ever reduced your retirement plan deferrals because an increase in health care benefit costs reduced your take-home pay?” I also asked if other employees in their company have done this. Three in 10 (30.8%) responding readers said they have at some time reduced their retirement plan deferrals because an increase in health care benefit costs reduced their take-home pay. Slightly more than 15% (15.4%) each reported that other employees in their companies have done the same and other employees have not done so. Readers who left comments offered good food for thought. One said this is a good point to make during bargaining discussions. Another stated, “Health’s immediate needs win over future retirement goals.” Editor’s Choice goes to the reader who said: “You can cut the pie into many pieces, but it’s still only one pie.” A big thank you to all who participated in our survey!
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