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August 8, 2017
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More Retirement Plan Sponsors Turning to Cash Balance Plans
Equity Returns Gave Pension Funding a Boost in July
PBGC Multiemployer Program Still Projected to Become Insolvent
Target Prevails in ERISA Stock Drop Suit
Providers Voice Concern About Fiduciary Rule Product Disruption
Money Market Vs. Stable Value
Benefits & Administration
More Retirement Plan Sponsors Turning to Cash Balance Plans:
Cash balance plans experienced growth, with a 17% increase in the number of new plans compared with a 3% increase in new 401(k) plans, according to research by Kravitz. "Cash balance plans offer considerable advantages for employers, including the opportunity to double or triple tax-deferred retirement savings," says Dan Kravitz, head of Kravitz. Read more »
Equity Returns Gave Pension Funding a Boost in July:
Providers that track pension funding status report that funding status got a boost in July due mostly to equity market returns. The funded status of defined benefit (DB) plans is also up for the year. However, some note that interest rates could affect funding levels for the rest of this year. Read more »
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Market Mirror

Yesterday, the Dow was up 25.61 points (0.12%) at 22,118.42, the NASDAQ climbed 32.21 points (0.51%) to 6,383.77, and the S&P 500 gained 4.08 points (0.16%) to finish at 2,480.91. The Russell 2000 increased by 1.84 (0.13%) to 1,414.16, and the Wilshire 5000 closed 35.28 points (0.14%) higher at 25,745.39.

The price of the 10-year Treasury note was up 3/32, decreasing its yield to 2.256%. The price of the 30-year Treasury bond  increased 5/32, bringing its yield down to 2.837%.
Compliance
PBGC Multiemployer Program Still Projected to Become Insolvent:
The Pension Benefit Guaranty Corporation (PBGC) insurance program for multiemployer pension plans, which covers more than 10 million Americans, is likely to run out of money by the end of 2025, according to the agency’s FY 2016 Projections Report.  However, the single-employer program is likely to eliminate its deficit within the next three to seven years. Read more »
Target Prevails in ERISA Stock Drop Suit:
The plaintiffs failed to meet pleading standards set forth in Fifth Third v. Dudenhoeffer, a court ruled. Read more »
Providers Voice Concern About Fiduciary Rule Product Disruption:
The second of the Department of Labor’s aggressive deadlines for submitting responses to a crucial request for information (RFI) process regarding a possible additional delay or full-scale repeal of the fiduciary rule expansion has arrived. For the most part, many providers seem to remain steadfast in opposition to the fiduciary rule. But the comments also make clear not all providers are fretting the accelerating fiduciary expansion. Read more »
From the Magazine
Money Market Vs. Stable Value:
A dilemma, says Webster’s Third New International Dictionary, is “a situation involving a choice between two equally unsatisfactory alternatives.” That describes the position that defined contribution (DC) plan sponsors find themselves in, regarding what should be a simple component of their plans—investment options intended to preserve capital. But both of the most widely used options, money market funds and stable value accounts, have shown their weaknesses in recent years, so there is no compelling choice. Read more »
Small Talk
ON THIS DATE: In 1876, Thomas Edison received a patent for the mimeograph. The mimeograph was a "method of preparing autographic stencils for printing." In 1899, the refrigerator was patented by A.T. Marshall. In 1911, the number of representatives in the U.S. House of Representatives was established at 435. There was one member of Congress for every 211,877 residents. In 1945, the United Nations Charter was signed by U.S. President Harry Truman. In 1953, the U.S. and South Korea initiated a mutual security pact. In 1966, Michael DeBakey became the first surgeon to install an artificial heart pump in a patient. In 1974, U.S. President Nixon announced that he would resign the following day. In 1978, the U.S. launched Pioneer Venus II, which carried scientific probes to study the atmosphere of Venus. In 1990, American forces began positioning in Saudia Arabia. In 1991, the U.N. Security Council approved North and South Korea for membership.
TRIVIAL PURSUITS: St. Patrick’s Day occurs annually on March 17 in observance of the death of St. Patrick, the patron saint of Ireland. What began as a religious feast day in the 17th century has evolved into a variety of festivals across the globe celebrating Irish culture with parades, special foods, music, dancing, and a whole lot of green. Where was St. Patrick born? 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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