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week ending May 1st, 2020 Since the record market drop caused by the coronavirus pandemic, major stock indices have been on a wild rollercoaster ride. While there are early indications that most retirement plan participants have been holding steady with their investment allocations, it never hurts to keep reminding them to maintain a long-term strategy. Plan sponsors also must keep the end goal in mind when monitoring investments and making decisions. This edition of PLANSPONSOR Weekend offers help for communicating with participants as well as for plan sponsors to perform their fiduciary duties. Wishing everyone a safe and happy weekend! Editor's Choice Investing Data Shows Majority of Investors Staying Calm Amid Volatility Vanguard found its clients with only a defined contribution (DC) retirement plan relationship exhibited the lowest levels of trading. Investing Talking Points to Help Participants Navigate Market Volatility Certain concepts should be communicated clearly to retirement plan participants so they don’t make decisions that may hurt their retirement readiness. Investing Plan Sponsors Should Be Extra Vigilant During Severe Market Volatility For both DB and DC plan sponsors, fiduciary actions follow a different time frame when there is a sustained market crisis. Investing Past Bear Market Strategies No Comfort for DB Plans Right Now Pension plan consultants are tweaking recommendations for DB plan sponsors during the unprecedented volatility created by the coronavirus pandemic. Investing Fixed Income Allocations Suppressed Potential Losses for ERISA Pension Plans Of the three institutional segments tracked by Northern Trust, corporate ERISA pension plans performed the best during 1Q 2020. Popular Reads Compliance Supreme Court Decision in Thole v. U.S. Bank Has Major Implications for Pensions The ruling effectively establishes that individual pension plan participants cannot sue their employer for a fiduciary breach if their own benefit has not been cut or otherwise altered. Compliance Heroes Act Now In the Hands of a Skeptical Senate The Heroes Act, passed by a narrow majority in the House, includes union pension partition relief and a waiver for the reinvestment of 2019 and 2020 RMDs. Compliance Court Finds Plan Sponsor Could Be Found Liable for Retirement Plan Cyberfraud The plan sponsor had sued plan providers, but the providers in a counterclaim said the plan sponsor was equally liable. Compliance Plan Sponsor, Provider Sued for Adding Untested CITs to 401(k) The 92-page complaint includes a number of other allegations, including that the plan sponsor was motivated by its relationship with the provider for its defined benefit plans. Data and Research COVID-19 Has Made the Retirement System Weaker A working paper discusses how the pandemic has affected retirement plans and what needs to be done for the retirement system to emerge stronger. Did someone forward you this newsletter? Sign up here to get PLANSPONSOR Weekend directly in your mailbox!

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