Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
September 6th, 2016
Industry Voices
Key Recent Decisions in Employer Stock Plan Litigation
Each year, the National Center for Employee Ownership updates its employer stock litigation review (the ESOP and 401(k) Plan Employer Stock Litigation Review 1990–2016). Corey Rosen, founder of the National Center for Employee Ownership, discusses key rulings in company stock litigation against retirement plan sponsors.Read more >
2017 Award Nominations Are Open
Nomination forms for the 2017 PLANSPONSOR Plan Sponsor of the Year Awards and Retirement Plan Adviser of the Year awards are now available.Read more >
Products, Deals and People
Retirement Industry People Moves
Treasury Attorney joins Alston & Bird as Employee Benefits Partner; PSCA collaborating with Groom Law Group for D.C. lobbying; Ameritas completes acquisition of Guardian 401(k) business, and more.Read more >
More TDF Underperformance Lawsuits Emerge Across US
Data and Research
Plan Sponsors and Participants Cite Different ‘Important’ Benefits
Data and Research
Employers Face ‘Tension’ Between Health Care And Financial Wellness
Economic Events

New orders for manufactured durable goods in July, up following two consecutive monthly decreases, increased $9.6 billion or 4.4% to $228.6 billion, virtually unchanged from the previously published increase, the Census Bureau reported. This followed a 4.3% June decrease. Transportation equipment, also up following two consecutive monthly decreases, led the increase, $7.6 billion or 10.6% to $78.9 billion. New orders for manufactured nondurable goods decreased $1.1 billion or 0.5% to $226.1 billion.

Total nonfarm payroll employment increased by 151,000 in August, and the unemployment rate remained at 4.9%, according to the Bureau of Labor Statistics. Employment continued to trend up in several service-providing industries.

THE ECONOMIC WEEK AHEAD: Thursday, the Labor Department will issue its initial claims report. Friday, the Census Bureau will report about wholesale orders for July.
Market Mirror

Friday, the Dow gained 72.66 points (0.39%) to finish at 18,491.96, the NASDAQ closed 22.69 points (0.43%) higher at 5,249.90, and the S&P 500 was up 9.10 points (0.42%) at 2,179.96. The Russell 2000 increased 11.66 points (094%) to 1,251.82, and the Wilshire 5000 climbed 123.22 points (0.55%) to 22,686.70.

On the NYSE, 3.1 billion shares traded, with advancing issues outnumbering declining issues nearly 4 to 1. On the NASDAQ, 2.9 billion shares changed hands, with a more than 2 to 1 lead for advancers.

The price of the 10-year Treasury note decreased 11/32, bringing its yield up to 1.605%. The price of the 30-year Treasury bond fell 31/32, increasing its yield to 2.275%.

WEEK’S WORTH: For the week ending September 2, the Dow increased 0.52%, the NASDAQ finished 0.59% higher, and the S&P 500 was up 0.50%. The Russell 2000 climbed 1.11%, and the Wilshire 5000 gained 0.66%.
Sponsored message from SEI
A Changing Landscape Requires a New Approach: DC Discretion
A changing DC landscape: Sponsors consider discretionary investment management. Why the shift?Read more >
From the Magazine
No Worker Left Behind
Many lower-income American workers face a bleak future in retirement. Very small or nonexistent savings in defined contribution (DC) plans, declining Social Security benefits due to the increase in the normal retirement age, higher health-care expenses and longer life expectancies combine for a difficult outlook. Only 25% of working, low-income U.S. households have any savings in a defined contribution plan, compared with 81% of high-income households, according to a recent report from the U.S. Government Accountability Office (GAO). Those low-income workers who have defined contribution plan balances have saved a median of only $10,400, the GAO says. “You could argue that the 401(k) system works for many people,” says Karen Friedman, executive vice president and policy director at the Pension Rights Center in Washington, D.C. “But you also could argue that it has failed many people.”Read more >
Small Talk
ON THIS DATE: In 1620, the Pilgrims left on the Mayflower from Plymouth, England, to settle in the New World. In 1876, the Southern Pacific rail line from Los Angeles to San Francisco was completed. In 1899, Carnation processed its first can of evaporated milk. In 1901, U.S. President William McKinley was shot and mortally wounded by Leon Czolgosz. In 1943, the youngest player to appear in an American League baseball game was pitcher Carl Scheib of the Philadelphia Athletics. Scheib was 16 years, eight months and five days old. In 1995, Cal Ripken played his 2,131st consecutive game setting a new record. Lou Gehrig previously held the record. In 2001, the U.S. Justice Department announced that it was seeking a lesser antitrust penalty and would not attempt to break up Microsoft. In 2002, in New York, the U.S. Congress convened at Federal Hall for a rare special session. The session was held in New York to express the nation’s mourning for the loss on September 11, 2001, and unity in the war against terrorism.
SURVEY SAYS: Employees Delaying Retirement
Last week, I asked NewsDash readers, “Do you plan to delay your retirement? Are employees in your company delaying retirement, and what effect is this having on your company?” Of responding readers, 46.5% said they plan to delay their own retirement, and 44.2% said they do not plan to delay retirement. Asked whether employees in their company are delaying retirement, 61.9% said ‘yes,’ and 21.4% said ‘no.’ The effect of employees delaying retirement is not all bad for companies, as 65.6% of respondents said they are retaining important knowledge and skill sets, and 43.7% indicated they are retaining engaged and productive workers. However, a significant number of responding readers did say they are unable to hire fresh new talent, their company’s health benefit costs are increasing due to an aging workforce, overall productivity is declining and they are unable to reduce compensation costs, pension and 401(k) or 403(b) plan contributions. Among the comments left by some readers, a few have the benefit of a defined benefit plan and don’t plan to delay retirement: “DB, baby! No stoppin’ me…bring it on!” Others pointed out that the notion of delaying retirement can mean different things. One reader is participating in a phased retirement and another says his/her company needs to facilitate phased retirement. Some indicated their retirement will be associated with when they can receive their maximum Social Security benefit, and others say they’ll continue working because they love it. Editor’s Choice goes to the reader who said: “I’d like to work as long as I feel I am able to be an asset to the company. I really do love my job and my work, except of course, when I hate it.” A big thank you to all who participated in the survey!Read more >
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Editorial: Alison Cooke Mintzer


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