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January 5, 2017
Good Day!
Fee Lawsuits’ Message
Goodbye, Revenue Sharing?
D.C. Appellate Court Affirms Employer Win in Stock Drop Suit
Court Denies Injunction of EEOC Wellness Program Rules
Retirees’ Claim for Lifetime Health Benefits Denied
From the Magazine
Fee Lawsuits’ Message:
News in August that a full appellate-judge panel would review the Tibble v. Edison International case, in which plaintiffs alleged that their plan inappropriately used retail share classes, does not impact the upshot of last year’s U.S. Supreme Court decision in the case. To help avoid future legal trouble, plan sponsors should think defensively. They should have a prudent process and carefully document their reasons for making decisions, including those on the fee-related issues these cases raise, says Lars Golumbic, a principal at Groom Law Group, Chartered. Read more »
Goodbye, Revenue Sharing?:
“We have been seeing a pretty significant shift away from revenue sharing,” says Lori Lucas, defined contribution practice leader at Callan Associates Inc. in Chicago. “To some degree, it’s a response to recent participant lawsuits.” Read more »
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Market Mirror

Wednesday, the Dow closed 60.40 points (0.30%) higher at 19,942.16, the NASDAQ increased 47.92 points (0.88%) to finish at 5,477.00, and the S&P 500 was up 12.92 points (0.57%) at 2,270.75. The Russell 2000 climbed 22.46 points (1.64%) to 1,387.95, and the Wilshire 5000 gained 186.19 points (0.79%) to finish at 23,800.92.

On the NYSE, 3.1 billion shares traded, with advancing issues outnumbering declining issues more than 5 to 1. On the NASDAQ, nearly 3 billion shares changed hands, with a more than 3 to 1 lead for advancers.

The price of the 10-year Treasury note was up 4/32, decreasing its yield to 2.435%. The price of the 30-year Treasury bond increased 11/32, bringing its yield down to 3.034%.
Compliance
The Pension Benefit Guaranty Corporation (PBGC) has issued a request for information (RFI) to inform the agency about issues arising from arrangements between employers and multiemployer plans involving an alternative “two-pool” withdrawal liability method. Read more »
D.C. Appellate Court Affirms Employer Win in Stock Drop Suit:
The latest employee stock ownership plan (ESOP)-focused decision out of the U.S. Court of Appeals for the D.C. Circuit, Coburn v. Evercore, affirms a lower court’s ruling that determined the plaintiffs “failed to plead a plausible alternative course of action their ESOP trustees could have taken rather than continuing offering company stock that would not have ended up hurting more than helping.” Read more »
Court Denies Injunction of EEOC Wellness Program Rules:
A federal court has denied AARP’s move for a preliminary injunction of Equal Employment Opportunity Commission (EEOC) wellness programs to enjoin the applicability of these regulations pending the court’s resolution of the merits. U.S. District judge John D. Bates of the U.S. District Court for the District of Columbia found AARP did not prove irreparable harm to its members and is unlikely to succeed on the merits of its case. Read more »
Retirees’ Claim for Lifetime Health Benefits Denied:
Using a relevant Supreme Court decision, a federal district court judge found there was no genuine issue of material fact showing agreements with unions promised inalterable lifetime health benefits. Read more »
Small Talk
ON THIS DATE: In 1896, it was reported by The Austrian newspaper that Wilhelm Roentgen had discovered the type of radiation that became known as X-rays. In 1914, Ford Motor Company announced that there would be a new daily minimum wage of $5 and an eight-hour workday. In 1925, Mrs. Nellie Taylor Ross was sworn in as the governor of Wyoming. She was the first female governor in the U.S. In 1933, in California, construction of the Golden Gate Bridge began. In 1940, the Federal Communications Commission (FCC) got its very first demonstration of FM radio. In 1948, Warner Brothers-Pathe showed the very first color newsreel. The footage was of the Tournament of Roses Parade and the Rose Bowl football classic. In 1961, "Mr. Ed" debuted. The show would run for six years. In 1970, "All My Children" premiered on ABC. In 1972, U.S. President Richard M. Nixon ordered the development of the space shuttle. In 1998, U.S. Representative, and entertainer, Sonny Bono died in a skiing accident.
SURVEY SAYS: Many providers offer tools that help retirement plan participants determine whether they are on track to replace a sufficient amount of income in retirement, and some offer suggestions for how to better get on track. This week, I’d like to know, have you used such a tool, did you believe the results or take them seriously, and how did the results make you feel? Your response will be greatly appreciated as the results will be printed in the next edition of PLANSPONSOR magazine. 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 | Editor-in-Chief | alison.mintzer@strategic-i.com

Rebecca Moore | NewsDash Editor | rebecca.moore@strategic-i.com

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