Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
September 6th, 2018
Benefits & Administration
Global Retirement Index Declines Pinned to Aging Populations
The 2018 Global Retirement Index report from Natixis shows the U.S. has fallen to 16th in the rankings. “We continue to age at a dramatic clip here in the U.S., as a society, and that is a big part of it,” Ed Farrington, head of retirement at Natixis, tells PLANSPONSOR. “When we look at the number of workers that are paying into the U.S. system per the number of people who are retired, the ratio continues to get worse by the year. This is also true for pretty much all developed countries. The fact is already putting a huge pressure on our system and it will only get worse, here and globally.” Read more >
Proper Asset Allocation Often Overlooked, Sibson Says
Employers can use targeted internal communication and other tactics to help their employees understand asset allocation and empower them to make better choices, Sibson Consulting maintains. “Most employees find asset allocation extremely confusing,” says Jonathan Price, vice president with Sibson. “Left to their own devices, they may make less than ideal decisions. This can include adjusting their allocations at the wrong time, chasing returns, not responding to changes in their lives and investing too much in stable value funds or company stock.” Read more >
Products, Deals and People
New ICI Website Takes on Myths About America’s Retirement System
The Investment Company Institute (ICI) has launched a new website, FactsOnRetirement.org, which highlights its research and suggests that America’s retirement system is strong. The site takes on myths about the system and offers tips for those who want to learn more about saving for retirement. Read more >
MOST READ ARTICLES
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House Committee Advances Bill to Establish Union Pension Lifeline Program
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The Senate Math That Could Block SECURE Act
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Adidas Sued Over Excessive Fees for 401(k) Participants
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Open MEPs Not for Every Plan Sponsor
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Employers Encouraged to Offer Multi-Dimensional Wellness Programs
Market Mirror

Wednesday, the Dow was up 22.51 points (0.09%) at 25,974.99, the NASDAQ lost 96.07 points (1.19%) to finish at 7,995.17, and the S&P 500 decreased 8.12 points (0.28%) to 2,888.60. The Russell 2000 closed 5.73 points (0.33%) lower at 1,727.64, and the Wilshire 5000 fell 107.63 points (0.36%) to 30,119.07.

 

The price of the 10-year Treasury note was down 1/32, increasing its yield to 2.902%. The price of the 30-year Treasury bond decreased 8/32, bringing its yield up to 3.075%.

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Compliance
Court Finds Personal Trust May Be Liable for Pension Termination Costs
Among other things, a federal appellate court rejected a district court’s decision that the Pension Benefit Guaranty Corporation (PBGC) standards for establishing successor liability are outlined in the Multiemployer Pension Plan Amendment Act of 1980 (MPPAA) and do not apply to single-employer plans. Read more >
SEC Proposals Would Level the Playing Field for ETFs
The Securities and Exchange Commission (SEC) is proposing a new rule under the Investment Company Act of 1940 that would permit exchange-traded funds (ETFs) that satisfy certain conditions to operate without the expense and delay of obtaining an exemptive order. The SEC explains that ETFs currently rely on exemptive orders, which permit them to operate as investment companies under the Act, subject to representations and conditions that have evolved over time. “We have granted over 300 of these orders over the last quarter century, resulting in differences in representations and conditions that have led to some variations in the regulatory structure for existing ETFs,” the agency says. The SEC says the proposed rule would level the playing field for ETFs that are organized as open-end funds and pursue the same or similar investment strategies. The agency is also proposing more disclosure to investors about ETFs, how they work and their costs. 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, President William McKinley was shot and mortally wounded (he died eight days later) by Leon Czolgosz, an American anarchist. In 1909, Robert Peary, American explorer, sent word that he had reached the North Pole. He had reached his goal five months earlier. In 1941, Jews in German-occupied areas were ordered to wear the Star of David with the word “Jew” inscribed. 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 1975, Martina Navratilova requested political asylum while in New York for the U.S. Open Tennis Tournament. In 1978, James Wickwire and Louis Reichardt reached the top of the world’s second largest mountain, Pakistan’s K-2. They were the first Americans to reach the summit. In 1995, Cal Ripken played his 2,131st consecutive game, setting a new record. Lou Gehrig previously held the record. In 2001, the Justice Department announced it was seeking a lesser antitrust penalty and would not attempt to break up Microsoft. In 2002, in New York, Congress convened at Federal Hall for a rare special session. The session was held to express the nation’s mourning for the loss on September 11, 2001, and unity in the war against terrorism.

SURVEY SAYS: I recently read about a survey which found 46% of professionals feel they are underpaid. The survey did not go into what, if anything, these folks plan to do about it. This week, I’d like to know, do you think you are paid fairly, considering what you do, and if you think you are underpaid, do you have any plans to try to do something about it? As usual, all responses are anonymous. You may respond to this week’s survey by 6 p.m. Pacific time today. Read more >
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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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

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