Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
September 8th, 2015
Benefits & Administration
Provider Changes Can Pose Records Retention Issues
Does your prior recordkeeper have the call center recordings or notes from five years ago? Do you have access to those recordings or to past defined benefit (DB) plan benefit calculations? Will the prior recordkeeper respond quickly to data requests to verify a participant’s claim or to provide information needed for an Internal Revenue Service (IRS) audit now that you are no longer a client, and no longer pay them? Retirement plan sponsors should understand their rights and ability to access past records after a change in recordkeeper or third-party administrator (TPA).Read more >
Products, Deals & People
Manulife Asset Management will use RiskFirst’s risk analytics platform, PFaroe, to help pension plan clients better understand  their asset, liability and risk profiles, helping to enable more efficient liability-driven investing (LDI) and de-risking solutions.Read more >
Humana Inc. Defeats Class Action Claims of Excessive 401(k) Fees
Ask the Experts
What Records Should ERISA Plans Retain?
PSNC 2024: Essential QDIA Considerations
Retirement Industry People Moves
New hires and promotions at Cafaro Greenleaf, McDermott Will & Emery, Lincoln Financial Group and more.Read more >
A safe harbor plan requires an initial plan year that is at least three full months, making October 1 the effective deadline for creating a new plan in 2015. ShareBuilder 401k is offering discounts for startups.Read more >
Economic Events

Total nonfarm payroll employment increased by 173,000 in August, and the unemployment rate edged down to 5.1%, the Bureau of Labor Statistics reported. Job gains occurred in health care and social assistance and in financial activities. Manufacturing and mining lost jobs.

THE ECONOMIC WEEK AHEAD: Thursday, the Labor Department will issue its initial claims report, and the Census Bureau will report about wholesale inventories for July. Friday, the Bureau of Labor Statistics will reveal the producer price index (PPI) for August.

Market Mirror

Friday, the Dow fell 272.38 points (1.66%) to 16,102.38, the NASDAQ closed 49.58 points (1.05%) lower at 4,683.92, and the S&P 500 lost 29.91 points (1.53%) to finish at 1,921.22. The Russell 2000 was down 8.98 points (0.78%) at 1,136.17, and the Wilshire 5000 decreased 286.47 points (1.39%) to 20,304.16.

On the NYSE, 3.2 billion shares changed hands, with a more than 3 to 1 lead for decliners. On the NASDAQ, 2.7 billion shares traded, with 1.6 declining issues for every advancing issue.

The price of the 10-year Treasury note was down 5/32, increasing its yield to 2.147%. The price of the 30-year Treasury bond decreased 11/32, bringing its yield up to 2.904%.

WEEK’S WORTH: For the week ending September 4, the Dow fell 3.25%, the NASDAQ decreased 2.99%, and the S&P 500 lost 3.25%. The Russell 2000 was down 2.30%, and the Wilshire 5000 finished 3.17% lower.

From the Magazine
DC Plan Q&A: Plan Fees and Expenses
Plan sponsors and fiduciaries must take care when making payments from plan assets. Careful evaluation of the different types of plan expenses—and whether or not they are reasonable—is very important. This includes evaluating any fees paid from accumulated revenue sharing.Read more >
Small Talk
ON THIS DATE: In 1565, a Spanish expedition established the first permanent European settlement in North America at present-day St. Augustine, Florida. In 1664, the Dutch surrendered New Amsterdam to the British, who then renamed it New York. In 1966, NBC-TV aired the first episode of “Star Trek” entitled “The Man Trap.” In 1971, in Washington, D.C., the John F. Kennedy Center for the Performing Arts was inaugurated. In 1974, U.S. President Ford granted an unconditional pardon to former U.S. President Nixon.
SURVEY SAYS: Comfort with Technology
Last week, I asked NewsDash readers, “When was the first time you used a computer, and how comfortable are you with the latest technology?” For the majority of responding readers, the first time they used a computer—including desktop, laptop, iPad, notebook, tablet, etc.—was in high school (20.5%), college (22.9%) or in their 20s (21.7%). No one said they are not at all comfortable using the latest technology—computers, smartphones, other mobile devices—while more than half (53%) described themselves as somewhat comfortable—“I can figure out most things, but sometimes wish I had my own personal IT support.” More than one-quarter (26.5%) consider themselves very comfortable and are always anxious to see what’s next. Reader comments about first-time computer use and staying up-to-date with technology included lots of reminiscing about word processors, punch cards and carbon paper. While many expressed relief—and even joy—about how technology has advanced to make things easier and quicker, one reader noted, “When PCs first came to the office they solved a lot of problems and increased efficiency. But now it seems like they are the source of most work problems and those problems are a drag on efficiency.” Editor’s choice goes to the reader who said: “WordPerfect with its function keys (no idiot icons there!); black screens with eerie green characters; strange programming codes that populated the start screens and slowly burped out processes; typing a 20-page brief then going to save it and it disappears; bending the floppy disk and destroying all the files on it; Pong ruled!” Thank you to all who participated in the survey!Read more >
TUESDAY TRIVIA: “The Pledge of Allegiance” was originally published in “The Youth’s Companion,” a leading family magazine at the time, on September 8, 1892.
TRIVIAL PURSUITS: “The Pledge of Allegiance” we say today is not the original that was published in 1892. What were the original words, and how and why did it change?Read more >
Share the good news with a friend! Pass the Dash along – and tell your friends/associates they can sign up for their own copy.Read more >

Editorial: Alison Cooke Mintzer


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