Investing June 29, 2006

FOMC Approves 17th Consecutive Rate Increase

June 29, 2006 (PLANSPONSOR.com) - The Federal Open Market Committee (FOMC) raised the federal funds interest rate a quarter percentage to 5.25 percent.
Reported by

In its  press release , the FOMC said it raised its target for the federal funds rate in response to a moderation in economic growth. According to the release, the economic growth moderation stems partly from a gradual cooling of the housing market and the lagged effects of increases in interest rates and energy prices.

The raised target should offset core inflation, which has been elevated in recent months, the committee noted in the release, but there is still a risk of inflation.

Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.

The increase is the 17th consecutive increase approved by the FOMC.

The rate is of concern for plan sponsors since most retirement plan loans use an interest rate based on the prime rate.

The Board of Governors also unanimously approved a 25-basis-point increase in the discount rate to 6.25 percent.

Benefits June 28, 2006

Jury Awards $1.7M to Victim of 'Motivational' Spanking

June 28, 2006 (PLANSPONSOR.com) - A jury in Fresno, California awarded $1.7 million to an Alarm One Inc. employee who sued for sexual harassment and battery after several workplace spanking incidents.
Reported by

HR.BLR.com reports that Janet Orlando said she was spanked with a yard sign on three separate occasions in front of jeering coworkers.

For more stories like this, sign up for the PLANSPONSOR NEWSDash daily newsletter.

The spankings were part of motivational practices at the company’s Fresno office, HR.BLR.com said. The company would have sales teams compete with the winners poking fun at the losers, according to the news report. Tactics included throwing pies at the losers, feeding them baby food, making them wear diapers and spanking them with a competitor’s yard sign (See Workplace Spanking Victim Asks for $1.2M Jury Verdict ).

Orlando claimed that during the spankings, the sales force would heckle her with comments such as “Bend over, baby,” and “You’ve been a bad girl.”

The company said Orlando was a willing participant during the motivational meetings and never complained about being spanked, according to the news report. It also claimed Orlando abruptly quit her job, not because of the spankings, but because she was upset about being passed over for promotion.

The jury’s award includes $500,000 in compensatory damages and $1.2 million in punitive damages.

«